All rights reserved. The data in this report has been carefully compiled and
is believed to be accurate. Such accuracy is not however guaranteed. No
portion of this publication may be reproduced in any format or by any
means including electronically or mechanically, by photocopying, recording
or by any information storage or retrieval system, or by any form or manner
whatsoever, without prior written consent of the author and publisher of
the publication.
Disclaimer: Neither JWS Pakistan nor JWS Pakistan's investors accept
responsibility for the validity of the information presented or consequences
resulting from its use by third parties.
Editorial Wing
Qazi Shoaib Alam Farooqi
Chief Executive Officer
JWS Pakistan
Ms. Warda Iqbal Chaudhary
General Manager HR
JWS Pakistan
Mr. Muhammad Jamil Anjum
General Manager Finance
JWS Pakistan
Mr. Muhammad Imran Dhillon
General Manager Operations
JWS Pakistan
Writing Wing
Syed Khurram Hussain
Author & Managing Editor
JWS Pakistan
Mr. Zeeshan Ahmed
Data Collection
JWS Pakistan
Table�of�Contents�IIIIIIVIIIXXI
0103101419212435�
5154555859
4245464748
Vision�&�Mission�Acronyms�
Message�from�the�ChairpersonMessage�from�the�Chief�Executive�Officer�
Board�of�Directors�Our�Values�
About�JWS�PakistanOperational�Highlights
Our�Products�&�ServicesOur�Departments�
Case�Study��For�the�Brand�Case�Study��Traditional�Sweets�
Celebrations�and�Events�Picture�Gallery�
Financial�Statements�Balance�Sheet
Income�&�Expenditure�Statement�Statement�of�Changes�in�Fund
Note�to�the�Financial�Statements
Affiliations�&�Collaborations�across�the�GlobeOur�Investors�&�Supporters
Assessments�and�CertificationInsurance�Alliance�
Regulator,��Auditors�&�Legal�Advisors
Mission
“Sustainable economic development and
social empowerment for all”
Vision
Vis
ion
& M
issi
on
I
Acronyms
Allied Bank Limited
Agriculture Loan
Area Manager
Area Office
Annual Staff Retreat
Board of Directors
Credit Group
Capacity Building
Compliance & Risk Management
Gujranwala NGO Forum
Habib Bank Limited
Head Office
Human Resource
Jinnah Welfare Society
Micro Credit
Micro Finance
Micro Finance Institution
Management Information System
Non-banking finance company
Outstanding Loan Portfolio
Orientation Training Workshop
Pakistan Centre for Philanthropy
Planning, monitoring, evaluation and research
Punjab Microfinance Network
Pakistan Microfinance investment company
Pakistan Microfinance Network
Punjab NGO Coordination Council
Pakistan Poverty Alleviation Fund
Shore Bank International
Securities and exchange commission of Pakistan
Small and Medium Enterprises
ABL
AL
AM
AO
ASR
BOD
CG
CB
CRM
GNF
HBL
HO
HR
JWS
MC
MF
MFI
MIS
NBFC
OLP
OTW
PCP
PMER
PMFN
PMIC
PMN
PNCC
PPAF
SBI
SECP
SME
II
Chairperson & CEO
MESSAGES
III
IV
Message from the Chairperson
Dear Friends,
Pakistan has achieved growth rate of 5.3 %, the highest in a decade, on the
back of recovery in the agriculture sector and better-than-expected
performance in the services sector. The growth puts the country in the
league of economies that have a size of over $300 billion.
This however is not sufficient to put the huge unemployed youth on the
jobs and improve the living standards of the population to a considerable
level. But indeed this has set a pace for the overall macro economic
development. This in turn shall provide a conducive environment for
various businesses to flourish and expand.
Under the overall favorable macro environment, regulatory support and
access to sufficient financing, micro finance sector has all the required
ingredients to make progressive leaps forwards.
JWS Pakistan has also availed the positive winds and made considerable
growth in terms of client's base, disbursement, number of branches as
well as towards outstanding loan portfolio (OLP). This has been made
possible with the internal reorganization and process refinements carried
out during the previous years.
This growth trend has helped us in consolidating our market position and
access new avenues of investment for expansion in the next financial year.
I would like to thank all of our well-wishers for their continuous support
and congratulate all of the JWS Pakistan team for their continuous efforts.
I wish JWS Pakistan a very successful year ahead.
Kind Regards,
Sabiha Shaheen
Chairperson
V
VI
Chief Executive Officer's Message
Dear Friends,
The aim of JWS Pakistan is very clear, i.e. helping the underprivileged break the cycle
of poverty. To achieve this, we have always aimed for enhancing the role of women
in economic activities and building their capacities to earn their livelihoods. This
gradual but proven way has helped us in bringing improvement in lives of
thousands of families at the grass root level.
This social cause of helping the poor communities has equally been rewarding for
the company as well. Few of the milestone achievements made during the year
include but are not limited to the following;
Active client base of 50,236
OLP of 1,225 Million PKR
Disbursement of 1.89 Billion PKR
99% beneficiaries include women
Retention rate of 70%
Rapid coverage of poverty pockets especially in rural areas
All of these key performance indicators (KPIs) speak about themselves and highlight
the impressive performance of the entire JWS Pakistan's team. This growth has
been made possible with the process refinement efforts carried out during the
previous year and rigorous capacity building efforts for the staff. These internal
reorganization efforts helped us to gain momentum for the expansion in depth and
breadth of the Upper and central Punjab region.
Company has also started diversifying its financing sources and now includes four
renowned national and international investor groups while initial negotiations with
few others are in process. This highlights our business performance, openness of
processes and existence of robust management model to manage large scale
financing and non financing operations in Punjab province.
I must say that all of these achievements have been made possible with the endless
efforts of our dedicated and seasoned staff. JWS Pakistan values these
contributions of the staff and has taken milestone steps to benefit staff members.
Some of these include annual salary increments, regular promotions as well as staff
health insurance.
I conclude with acknowledgement of remarkable efforts of staff, management and
board of directors to help in steering JWS Pakistan forward.
Kind Regards,
Qazi Shoaib Alam Farooqi
Chief Executive Officer
VII
Sabiha Shaheen
Ms. Sabiha Shaheen is working as chairperson of JWS Pakistan. Under her
visionary leadership, JWS Pakistan has scored milestone achievements.
Within the institution, she is known as a strong advocate of innovation and
continuous development.
She specializes in youth development, gender mainstreaming and is a key
civil society practitioner since 1997. She is also credited for advocacy
campaigns to design and implement national youth policy in the country.
Qazi Shoaib Alam Farooqi:
Qazi Shoaib Alam Farooqi is a seasoned professional with over 27 years of
experience in the domains of micro finance, enterprise development,
organizational leadership and social sector development. He is an active
member and contributor of several development networks at regional and
international level. As CEO of JWS Pakistan, he is credited with successfully
launching and operating a non banking finance company (JWS Pakistan) for
the last 25 years.
Board of Directors
VIII
Farrukh Iqbal:
Mr. Farrukh Iqbal has more than 37 years of experience in banking sector.
He has worked on managerial positions with several financial institutions.
His areas of expertise include financial operations, internal controls and
strategic plans development. He is now working as an active member of JWS
Pakistan and playing important role in providing strategic guidelines to the
institution.
Muhammad Shahid:
Mr. Muhammad Shahid is an educationist by profession and has been
running private institutions successfully. As member board of JWS Pakistan,
he has introduced new aspects of social development in the financial
services.
He is also credited with developing outlines of training and other staff
development initiatives.
IX
X
We Value
Our Values!
XI
BalanceTaking�a�proactive�stand�to�create�and�maintaina�healthy�work-life�balance�for�workers.�
InnovationPursuing�creative�ideas�that�have�the�potential�to�change�the�world.�
EmpowermentEncouraging�employees�to�take�initiative�and�give�the�best.�
OwnershipTaking�care�of�the�organization�and�clients�as�they�were�one�s�own.�
IntegrityActing�with�honesty�and�honor�without�compromising�the�truth.�
Client�Focused�All�of�our�services�&�polices�are�client�focused.�
Our�Values!
XII
Annual�Report�2016-17This�report�offers�a�windows�of� information� into�JWS�Pakistan�s�guiding�philosophy,�Vision,�Mission� and� achievements� during� the� year�2016-17.�JWS�Pakistan�remains�committed�to�establish�sound�business�standards�and�in� offering� innovative� pro� poor� economic� development� services� which�enhance� dignity� and� self-respect� amongst� marginalized� communities� of�Pakistan.�
XIII
�JWS�Pakistan�JWS�Pakistan�is�a�Non-Banking�Finance�Company�(NBFC),�licensed�from�Securities�&�Exchange�Commission�of�Pakistan.�Company�has�its�head�office� in� Gujranwala�with� branch� offices� spread� across� Central� and�North�Punjab�region.�
Company�offers�range�of�products�to�meet�the�financing�needs�of�home�operated� businesses� and� small� scale� economic� activities.� These�financial�services�are�augmented�with�borrower's�life�insurance,�health�insurance,� enterprise� management� trainings,� market� linkages�development� and� exposure� visits.� These� credit� plus� services� have�proved�to�be�very�effective�in�enhancing�the�efficiency�and�efficacy�of�loans�at�the�grassroots�level.
Company�operates�with�standard�operating�procedures�and�multiple�layers�of�check�and�balance�to�ensure�smooth�and�seamless�business�operations� at� all� levels.� This� standardization� of� operations� and� our�increased� transparency� has� attracted� international� investors� and�playing�an�imperative�role�in�company's�success�and�development.
During�the�year�under�review,�company�has�undergone�an�impressive�growth� trajectory� based� on� sound� business� planning� and� market�conditions.�Board�of�directors�and�management�of� the�company�are�committed�to�continue�these�efforts�that�give�hope�and�bring�prosperity�in�the�lives�of�marginalized�segment�of�our�society.��
Annual Report for the year ended 30th June 201701
PERFORMANCE�DASHBOARD
Outreach Products Performance�
Districts�Covered�(10)
Gujranwala,�Gujrat,�Mandi�Bahauddin,�Sialkot,�Hafizabad,�Sheikhupura,�LahoreNarowal,�Faislabad�Nankana�Sahib
Products�
Apna�Karobar,�Zari�Khud�Kafalat,�Madad�Gaar�Qarza,�Maal�Muweshi�Qarza,��School�Sarmaya.
Recovery�Rate
100%
Operational�Offices
45
Credit�Plus�Services
Trainings,�Linkages�Development,�
Business�Orientation
Client�Retention�Rate
70%
Operational�Self�Sufficiency�144%�
Permanent�Staff
240
Lending�Range
�20,000�-�150,000�PKR
Financial�Self�Sufficiency�144%
Active�Clients
50,236
Collateral�Type�
Social�
Annual Report for the year ended 30th June 2017 02
Operational�Highlights�
The�Financial�Year�2016-17�has�been�a�very�good�year�for�the�Company�against� most� of� the� key� performance� indicators� (KPIs).� These�achievements�are�presented�under�the�following�key�sections.�
Currently served (10)
Potential areas for expansion (2)
Operational�Footprints�in�Punjab�Region
Lahore
Faislabad
Gujrat
Sialkot
NarowalGujranwalaSargodha
Mandi�Bhauddin
Ha�zabad
SheikhupuraChiniot
NankanaSahib
Annual Report for the year ended 30th June 201703
2.1.�Portfolio�Growth
The�Company�has�expanded�its�outreach�by�increasing�the�penetration�in�the�existing�districts�as�well�as�in�new�geographical�areas.�The�growth�trend�highlights� excellent� acceptance� of� financial� and�non� financial�products�among�communities.�It�also�suggests�a�positive�correlation�between�product�cash�flows�with�their�business�cash�flows.
During� the� year� under� review,� outstanding� loan� portfolio� of� JWS�Pakistan�touched�new�heights�and�was�closed�at�PKR�1,225�Million�(Exhibit-1).�This�portfolio�has�been�maintained�cleanly�with�portfolio�at�risk�ration�of�below�1%.� �This�clearly�highlights�commitment�of�our�team�as�well�as�strong�and�productive�client�relationships.�
Similarly,� a�healthy�disbursement�of�PKR�1.9�billion� (Exhibit-2)�was�achieved�by�the�team�through�the�network�of�45�operational�branches�spread� across� central� and� upper� Punjab� region.� Both� the� OLP� &�disbursement�targets�were�100%�achieved�in�light�of�the�growth�plan�approved�during� the� annual� strategic� planning�meeting� of� the� core�management.�
Outstanding Loan Portfolio Growth (Exhibit-1)
OLP
1,400,000,000
1,200,000,000
1,000,000,000
800,000,000
600,000,000
400,000,000
200,000,000
0
1,225,231,830
718,859,036717,862,304
509,993,964
2013-14 2014-15 2015-16 2016-17
Disbursement Growth (Exhibit-2)
Disbursement
2,000,000,000
1,800,000,000
1,600,000,000
1,400,000,000
1,200,000,000
1,000,000,000
800,000,000
600,000,000
400,000,000
200,000,000
0
1,940,325,000
1,209,015,0001,292,890,000
84,555,000
2013-14 2014-15 2015-16 2016-17
Annual Report for the year ended 30th June 2017 04
Similarly,�JWS�Pakistan�has�gradually�increased�its�average�loan�size�up�to�PKR�37,767�keeping�in�view�the�business�needs�of�clients�and�their�regular� requests.� � This� is� very� much� comparable� to� the� industry�average.�Increased�loan�sizes�also�increased�stakes�which�were�dually�managed�by�our�committed�and�seasoned�workforce.�
Another�aspect�of�the�growth�achieved�by�the�company�was�reaching�the�milestone�of�50,000�plus�client�base�(Exhibit-3).�Thus,�successfully�maintaining� the� 1%� share� of� the� overall� micro� finance� market� in�Pakistan.�
Similarly,�JWS�Pakistan�has�expanded�more�rapidly�in�the�rural�areas�than� in� the� urban� areas� (Exhibit-4).� Although� this� has� been� a� risky�practice,�but,�has�been�carried�out�to�achieve�the�national�development�agenda�of�serving�the�unbanked�communities�as�our�top�priority.�
These�growth�indicators�highlight�enhanced�maturity�of�the�company�in� handling� the� operations� and� correspond� to� deeper� market�penetration�in�given�areas�of�operations.�Team�is�hopeful�of�achieving�even�better�results�in�the�coming�financial�year.
No. of Clients (Exhibit-3)
Loans
60,000
50,000
40,000
30,000
20,000
10,000
0
50,236
35,627
37,167
28,239
2013-14 2014-15 2015-16 2016-17
Poly (Loans)
Locations Served: Rural vs Urban (Exhibit-4)
Rural
Urban
1000
8000
600
400
200
0
822
527
419365
2013-14 2014-15 2015-16 2016-17
551551
456456
551
456
571571
444444
571
444
Annual Report for the year ended 30th June 201705
Exposure Across Sectors (Exhibit-5)
Services
Light Engineering
Live Stock
Handicraft
Commerce
Agriculture
1,400,000,000
1,200,000,000
1,000,000,000
800,000,000
600,000,000
400,000,000
200,000,000
0
2013-14 2014-15 2015-16 2016-17
2.3�Portfolio�Spread
Outstanding�loan�portfolio�contributes�more�than�90%�of�the�asset�base�of� non� banking� finance� companies� like� JWS� Pakistan.� This� high�concentration�of�assets�places�equally�great�responsibility�in�managing�this�asset�base�with�utmost�care�and�professionalism.�
Fortunately,�JWS�Pakistan�has�several�layers�to�ensure�compliance�of�standard�operating�procedures�for�lending.�These�layers�include�the�operations� department� itself,� internal� audit� and� newly� established�compliance�and�risk�management�department.�These�internal�control�layers�have�been�central�in�maintaining�a�very�clean�portfolio�and�in�keeping�portfolio�at�risk�(PAR)�of�the�company�below�1%�historically.�
Behind�this�excellent�portfolio�performance,�not�only�rest�our�business�processes,�but�credit�also�goes� to� the�spread�of� the�portfolio�across�economic�sectors�as�well�as�districts�(Exhibit-6).�(Exhibit-5)�highlights�the� spread� of� the� portfolio� across� six� key� sectors� of� handicraft,�commerce/trading,�services,�agriculture�and�livestock�in�descending�
OLP Growth Across Districts (Exhibit-6)
Sialkot
Sheikhupura
Mandi Bahauddin
Lahore
Hafizabad
Gujrat
Gujranwala
1,400,000,000
1,200,000,000
1,000,000,000
800,000,000
600,000,000
400,000,000
200,000,000
0
2013-14 2014-15 2015-16 2016-17
Annual Report for the year ended 30th June 2017 06
order�of�their�ranking.�These�sectors�further�have�stronger�local�roots�as� well� as� wide� economic� moat� making� them� excellent� choice� for�lending.�
Similarly,�JWS�Pakistan�has�systematically�spread�the�portfolio�among�45�branches�across�central�and�upper�Punjab�region.�This�spread�helps�in�diversifying�portfolio�risk�across�a�wider�landscape�and�is�another�strategy�of�portfolio�management�at�JWS�Pakistan.�
Exhibit-6�might�highlight�greater�concentration�of�funds�in�Gujranwala�district�but�they�are�evenly�spread�out�in�11�branches�operating�in�the�area.�Furthermore,�Exhibit-7,�presents�an�outlook�of� the�OLP�of� the�branches� providing� greater� detail� about� the� investment� exposures.�None�of�the�branches�has�over�7%�exposure�of�the�total�OLP,�making�the�spread�an�ideal�one.�
Company�plans�to�expand�its�operations�in�two�additional�districts�in�the�next�fiscal�year�with�7-10�new�branches.�This�will�further�lower�down�the�risk�of�geographical�concentration�in�the�long�run.�
OLP Spread Across Branches (Exhibit-7)
OLP
60,000
50,000
40,000
30,000
20,000
10,000
0
FD
T
KM
K
HA
R JT
WZ
D
SH
D
GK
R
DS
K
SG
R
QD
S
QM
A
LM
A
HZ
D
PS
R
FT
G
NV
KII
SM
B
GD
P
DC
K
AP
C
MB
D JPJ
TM
K
MK
G
HZ
DII
NV
KII
KS
K
PH
A
MR
K
BG
K
SK
P
PQ
D
MN
W
SK
PII
CH
W
Annual Report for the year ended 30th June 201707
4.5.�Business�Sustainability�
Business�sustainability�comes�as�a�top�agenda�on�the�priority� list�of�management�team�at�JWS�Pakistan.�This�is�usually�measured�in�terms�of�operational�self�sufficiency�(OSS)�as�well�as�financial�self�sufficiency�(FSS).�Operational�self�sufficiency�(OSS)�measures�the�degree�to�which�the�organization's�expenses�are�covered�by�its�core�business�and�is�able�to� function� independent� of� grant� support.� OSS� (Fig-8)� of� the� JWS�Pakistan�is�positive�as�well�as�trending�towards�further�improvement�every� year.� This� highlights� enhanced� and� growing� ability� of� the�company�to�meet�all�its�operating�expenses�with�operational�income�alone.�Similarly�JWS�Pakistan�has�achieved�and�augmented�its�financial�self�sufficiency�as�well�over�the�period�of�time.�For�the�year�2016-17,�FSS�stood�at�144%.�This�further�highlights�the�sustainability�of�lending�operations�of�JWS�Pakistan.��
4.6.�Business�Performance�
Net�worth�is�the�amount�by�which�assets�exceed�liabilities�and�is�an�important� metric� in� understanding� the� health� and� worth� of� any�business.�A�consistent�increase�in�net�worth�indicates�good�financial�health;� conversely,� net�worth�may�be� depleted� by� annual� operating�losses�or�a�substantial�decrease�in�asset�values�relative�to�liabilities.�JWS�Pakistan�has�a�very�healthy�net�worth�owing�to�the�size�of� the�business�as�well�as�recent�expansions�carried�out
Operational Self Sufficiency (Exhibit-8)
OSS
160
140
120
100
80
60
40
20
0
2013-14 2014-15 2015-16 2016-17
110121
135
144
Annual Report for the year ended 30th June 2017 08
Asset�Utilization�is�another�very�important�indicator�of�highlighting�the�performance�of�the�company.�It�compares�gross�loan�portfolio�of�the�company� (GLP)� with� total� asset� base� to� present� the� ability� of� the�company�in�utilizing�the�total�assets�in�building�up�gross�loan�portfolio�(the�actual�business�of� the�company).�Review�of� the�previous�year's�performance�and� its�comparison�with� the�micro� finance� industry�of�Pakistan� gives� above� average� performance� (Exhibit-11).� It� further�solidifies� the� efficiency� and� efficacy� of� the� business� processes� as� a�whole.�
Net Worth (Exhibit-10)
Net Worth
Expon.(Net Worth)
400,000,000
350,000,000
300,000,000
250,000,000
200,000,000
150,000,000
100,000,000
50,000,000
0
376,223,029
270,600,607
282,114,729
236,473,603
2013-14 2014-15 2015-16 2016-17
Asset Utilization Rate (Exhibit-11)
JWS Pakistan
Industry
Trend
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2013-14 2014-15 2015-16 2016-17
78%
58%
74%
62%60%
74%
67%
58%
Annual Report for the year ended 30th June 201709
Our Products & Services
Annual Report for the year ended 30th June 2017 10
JWS�Pakistan�has�always�strived�to�develop�client�oriented�and�demand�driven�solutions� for� financial�needs�of�marginalized�segment�of�our�society.�This�however,� goes� through� imperative� steps�of� conceiving,�designing,�piloting�and�then�scaling�any�product.�This�process�helps�us�in�identifying�potential�products�out�of�many�emerging�trends.�JWS�has�articulated�following�demand�driven�products�using�this�robust�model�of�product�development;
Our�Products�&�Services�
�JWS�Pakistan��Zari�Khud�Kafalat�Qarza��is�being�provided�to�strengthen�the�economic�base�of�the�low-income�farmers,�through�their�increased�access�to�easy�and�cost-effective�financial�services,�capacity�building�initiatives�and�upstream/downstream�market�linkages.
This� product� received� very� positive� response� from� the� farming�communities�and�has�actively�been�able�to�resolve�their�issues�since�its�launch� in� 2010.� Agricultural� loans� are� disbursed� through� Farmers�Development�Groups�(FDGs),�consisting�of�5-15�members�having�land�holding�of�5-10�acres.�The�loan�is�sanctioned�upto�PKR�150,000.��
�JWS� Pakistan� �Apna� Karobar� Qarza�� is� a� product� for� low� income�individuals� undertaking� income� generating/business� activities� for� a�variety�of�purposes.�Apna�Karobar�Qarza�is�a�household�loan�provided�for� women� in� the� fields� of� handicraft,� manufacturing,� trading� or�services�activities�etc.�The�loan�is�sanctioned�upto�PKR�75,000.��
��APNA�KAROBAR�QARZA�
�ZARI�KHUD�KAFALAT�QARZA�
Annual Report for the year ended 30th June 201711
�JWS�Pakistan��Madad�Gaar�Qarza��serves�the�increased�credit�needs�of�clients,�who�want�to�expand�their�micro�enterprises�to�increase�sale�and�turnover.�Loans�are�extended�for�enhancement�of�income�patterns�and�to�create�the�business�activity�through�purchase�of�assets,�stocks�etc�to�boost�the�sale/production.�The�loan�is�sanctioned�upto�PKR�150,000.���
�Livestock�animals� (Maal�Maweshi)�are�the� integral�part�of�our�rural�economy.�Maal�Maweshi�Qarza�is�offered�to�farmers,�especially�women�to�purchase�milking�animal�for�small�scale�dairy�business.�The�loan�is�sanctioned�upto�PKR��75,000.����
�JWS�Pakistan��School�Sarmaya��product�designed�for�private�school�owners�who�are�involved�in�providing�low�cost�education�to�children�in�urban�and�rural�areas.�The�loan�is�sanctioned�upto�PKR�150,000.����
�MADAD�GAAR�QARZA�
�MAAL�MAWESHI�QARZA�
�SCHOOL�SARMAYA�
Annual Report for the year ended 30th June 2017 12
Apart� from� the� financial� services,� JWS� Pakistan� also� provides� non�financial� services� to� its� valuable� clients� to� further� improve� their�businesses.�Under�the�non�financial�services�component,�JWS�Pakistan�provides�following�services;�
usiness�Trainings:B �Trainings�and�orientation�related�to�the�respective�businesses�are�common�part�of�our�non�financial� services.� These� trainings� and� orientation�
sessions�are�conducted�at�the�start�of�the�lending�cycle�in�a�group�form.�These� trainings�provide�basic�knowledge�related� to� the�specific� business� domain,� productive� use� of� loan�money� and�ways�to�enhance�productivity�and�efficiency.�
arket� Linkages� Development:�M JWS� Pakistan� has�extensive� footprints� in� the� six� districts� of� its�operations� that� help� us� integrate� and� promote�
market�linkages.�To�systematically�implement�the�linkages�and�marketing�development�programs,�our�team�follows�value�chain�development� approach.� � Under� this� value� chain� model,� JWS�recently� organized� a� mega� Kissan� Conference� this� year� to�promote�linkages�of�over�500�farmers�with�the�representatives�of�around�20�input�suppliers�and�extension�services�providers.�
lient� Life� &� Health� Insurance:C � JWS� loan� insurance�ensures�that�a�member's�loan�does�not�become�a�burden�to�his/her�family�in�the�case�of�his/her�death.�If�a�member�
dies,�then�the�outstanding�amount�is�waived�off�as�the�insurance�benefit.�Nominee/Guardian�is�also�given�PKR.7,�000�for�funeral�purpose.�All�clients�of�JWS�are�insured�under�this�scheme�with�SPI�&�Adamjee�insurance�companies.� � �JWS�Pakistan�has�also�ensured�all�of�its�clients�for�the�health�coverage�as�well.�
Annual Report for the year ended 30th June 201713
Our
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Annual Report for the year ended 30th June 2017 14
�Finance�&�Accounts�Department�
Mr.�Jamil�Anjum�is�the�driving�force�behind�the�finance�&�Accounts�department� of� JWS� Pakistan.� Under� his� leadership,� company� has�established�sound�SOPs�for�financial�transactions�at�all�levels.�He�has�helped�company�in�adapting�to�the�new�regulatory�environment�under�Securities�and�Exchange�Commission�of�Pakistan�(SECP).�
Finance�department�has�also�efficiently�managed�the�funds�flow�in�the�company.�Being�a�microfinance�company,�JWS�Pakistan�requires�health�inflow� of� funds� to� meet� the� lending� requirements.� Meeting� this�challenge,�finance�department�in�collaboration�with�other�departments�has�successfully�signed�funding�agreements�with�number�of�national�and�international�investor�groups.�
Human�Resource�Management�
Ms.� Warda� Iqbal,� General� Manager,� heads� the� human� resource�department� at� JWS� Pakistan.� She� has� introduced� new� concepts� of�human�resource�management�within�the�company�that�have�proven�to�be�successful.�Under�her�leadership,�department�has�transformed�more�into�a�center�of�excellence�providing�energy,�vitality�and�skills�for�the�workforce.�
Department�is�tasked�to�manage�the�entire�staff�of�the�company�that�involves�decisions�like�need�identification,�placing�job�advertisements,�recruitment,� selection,� training,�mentoring,� succession�planning�and�promotions.� To� meet� the� changing� circumstances,� HR� department�regularly� conducts� orientation� and� training� sessions� for� the� staff.�During�the�reporting�year�too,�number�of�such�sessions�were�arranged�in�addition�to�sending�senior�staff�members�at�training�events.�Few�of�the� performance� indicators� highlight� the� excellent� work� the�department�is�doing�for�the�company.�
Our�Departments�
Annual Report for the year ended 30th June 201715
Retention� rate� has� further� improved� from� the� previous� year� (94%)�indicating� that� employee's� preference� to� work� for� the� company� is�gradually� increasing.�Furthermore,�average�employee�age�highlights�the�young�workforce�driving�the�organization.�
Operations�Department�
Operations�department�is�headed�by�Mr.�Imran�Dhillon,�an�experienced�micro� finance� practitioner� since� 2003.� He� has� helped� in� refining�business�processes�over� the� time�and�his�contributions� for� the�staff�capacity�development�are�highly�acknowledged.�
Operations� wing� is� also� responsible� for� product� development,�disbursement�and�collection�of�loans�as�well�as�keeping�a�regular�check�on�the�staff�for�compliance�and�quality�control.�Keeping�in�view�the�growth�consolidation�strategy�of�the�organization�in�mind,�operations�team�successfully�maintained�the�portfolio�of�clients�and�at�the�same�time� brought� about� several� refinements� and� make� over's� in� the�business�processes�to�make�them�more�efficient�and�client�oriented.
Information�Technology�
Information� technology� is� another� backbone� service� provider�department� of� the� company.� IT� department� is� supervised� by� an�energetic�professional�Mr.�Islam�Gull.�His�years�of�experience�in�the�IT�domain�helped�company�in�evolving�the�MIS�system�over�the�period�of�time.�
Indicator
Succession�Planning
Average�Employee�Retention�Rate
Average�Employee�Turnover�Rate
Average�Employee�Age
Employee�Training�Rate
JWS�Pakistan�
100%�for�managerial�posts
96.7%
3.3%
27�Years
70%
Annual Report for the year ended 30th June 2017 16
IT� department� is� actively� supporting� the� virtual� network� of� the�company� and� continuously� working� to� provide� all� the� functional�support�and�enhancement�of�the�management�information�system.�In�addition� to� this,� department� also� holds� frequent� training� and�orientation�programs�for�the�field�staff.�These�trainings�prove�handy�in�ensuring� standardization�as�well� as� in� improving�compliance�of� the�SOPs�in�lending�operations.�
Internal�Audit�
Internal�audit�department� is� the� second� line�of�defense�against�any�possible� theft,� fraud� and� misrepresentation� of� information� at� JWS�Pakistan.�Mr.�Nazir�Khan�heads�the�wing.�Audit�department�regularly�conducts�field�visits�both�planned�as�well�as�surprise�to�enhance�its�effectiveness� and� deterrence� against� any� planned� and� unplanned�frauds�and�misrepresentations.�Furthermore,�to�ensure�transparency�and�independence�in�its�operations,�internal�audit�department�directly�reports�to�the�head�of�the�organization.�
Overall�the�department�ensures�following�tasks�on�regular�basis;� �Assessment�of�adequacy�and�efficiency�of�the�internal�controls�and�risk�management�system.
�Providing�consultations�to�the�executive�body�of�the�JWS�on�the�issues� related� to� the� risk� management,� internal� control� and�corporate�governance.
�Assisting�executive�body�of�JWS�in�investigation�of�wrongful�acts�of�employees�and�third�parties,�including�negligence,�corporate�fraud,�corrupt�practices,�abusive�acts�and�various�wrongful�acts�causing�damage�to�the�organization.
�Assisting�in�system�improvement�through�advisory�reviews.� �Ensuring�operational�compliance�with�SOPs�and�organizational�policies�
�Ensuring�financial�transparency�in�the�organization.�
Annual Report for the year ended 30th June 201717
Compliance�&�Risk�Management�Department�
Compliance� and� Risk� Management� (CRM)� is� newly� established�department�keeping�in�view�the�regulatory�requirements�as�well�as�to�safeguard�against�various�types�of�risks.�Mr.�Khurram�Hussain�heads�the� department� having� deep� understanding� and� expertise� in� the�domain�of� risk�management.�The�department� is� responsible� to� look�after� and� provide� early� warnings� against� various� types� of� risks�including�but�not�limited�to�credit�risk,�operational�risk,�reputational�risk,� liquidity� risk� and� regulatory� risks.� Department� has� deployed�compliance�and�risk�management�officers�at�the�area�level�to�conduct�independent� appraisals� of� the� clients� as� well� as� monitor� the�effectiveness�of�staff�towards�following�the�SOPs.�
With�the�addition�of�CRM�department,�the�efficiency�level�of�field�staff�and� especially� the� rate� of� compliance� with� SOPs� have� improved�considerably.�
Annual Report for the year ended 30th June 2017 18
Ms. Galadas is an emerging entrepreneur among the JWS Pakistan financed
clients. She hails from a remote town of Tehsil Daska, District Sialkot and
stitches protective gloves used by the labour force in the factories. Her husband
used to work for a gloves making factory around 10 years ago on daily wages.
Galadas discussed with her husband about the possibility of starting their own
small home scale setup. Realizing the challenges, her husband initially refused
to grant permission to her.
However, Galadas kept on pursuing her husband and finally won his consent.
Together, they mobilized savings as well as borrowed from JWS Pakistan (over
the period of several years) to purchase required machinery and tools
gradually. This helped her in setting up their own production facility, employ
over 15 community members, increase their business revenue to PKR 300,000/
month and bring tangible improvement in their socio economic status. This
however, was not easy and she had to take following tough decisions at right
time,
For�the�Brand:��Galadas�Gloves�
19
Separate Production facility from home: One of the key factors in her
success was the separate production facility of gloves from her home.
This helped her continue the production in shifts without disturbing the
family life.
Competitive pricing: Galadas and her husband used to offer
competitive pricing for the production of gloves (lesser than the
factory's own cost of production). This helped them in continuously
gaining production orders.
Consistent Quality of Gloves: Consistent quality of work specially the
stitching and finishing of gloves helped them in
Diversified Business Sources: The second most helpful factor was the
ability of their business to simultaneously work with two glove
producing factories of the area. This helped them in managing un-even
demand patterns during the year and maintaining their skilled work
force.
Order Management: She recalled that over the period of time she
never requested rescheduling of delivery time. Therefore, timely
delivery, quality and pricing were the helping factors in her way to
success.
Telling about her future aspirations, she highlighted that in the near future, she
wants to launch her own brand of gloves by the name of “Galadas Gloves”.
Improvement across the socio economic indicators is summarized in Exhibit 12
& 13.
6
5
4
3
2
1
0
Food Seasonal Fruits Clothing Living Conditions
Pre Loan
Post Loan2
5
1.5
4
2
3 3
5
Pre-Post: Living Standards (Exhibits-12)
Pre Loan
Post Loan
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
300,000
Pre-Post: Economic Conditions (Exhibits-13)
Business Revenue Net Income Saving
110,000
35,00065,000
5,000
20,000
20
Tahira Zulfiqar lives in the industrial town of Gujranwala and prepares a
traditional form of sweet locally called as “Maroonda” (Made of jaggery and
rice). She is a living story of success achieved out of desperations and poverty.
Few years ago, her in laws expelled her from their home and they had to start
their life in a rented house. She then took a bold decision of starting their own
business of preparing Maroonda with the active support of her husband.
With years of continuous struggle, investments out of savings and borrowing
from JWS Pakistan, they were able to build their business on solid foundations.
Today, she employs around 16 workers with monthly sale of PKR 250,000. Her
product outreach is not limited to the local city but is also sold in Daska, Sialkot,
Sambrial, Chakwal, Talagang, Mansehra and Abbotabad.
Interestingly, she has got medical fitness certificates of her employees as well as
got license from Punjab Food Authority. She generously provides three time
meal and tea to her staff members and also facilitates in medical treatment.
Regarding her future plans, she wishes to expand her business on the following
lines;
Make other products: She plans to include more eatable products in
her production line. Those include Nimko, potato chips and vermecillies.
She is hopeful that these additional items shall further increase her
business revenue.
Purchase packing and pressing machine: She is very ambitious
towards her business and plans to purchase packing and pressing
machine. This shall help her in bringing efficiency in the production line
and meet business orders more quickly and cost effectively.
To construct her own house: Tahira is currently living in a rented house
and building her own home is her biggest plan in the future. All of her
struggle in the business is aimed at be able to finance construction of
her own small, sweet home.
Improvement across the socio economic indicators is summarized in
Exhibit 14 & 15.
Traditional�Sweets��
21
6
5
4
3
2
1
0
Food Seasonal Fruits Clothing Living Conditions
Pre Loan
Post Loan3
5
3
4
3
5
3
4
Pre Loan
Post Loan
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
250,000
Pre-Post: Living Standards (Exhibits-14)
Pre-Post: Economic Conditions (Exhibits-15)
Business Revenue Net Income Saving
50,000
20,000
110,000
-----
40,000
22
I
Annual�Strategic�Planning�Meeting�
Like�every�year,�an�annual�strategic�planning�meeting�was�organized�in�August� 2016.� The� aim� of� the� meeting� was� to� review� the� growth�indicators�set�by�the�company�during�the�previous�year�and�set�targets�for� the� coming� year.�Meeting�was� conducted� in� the� hilly� station� of�Bhurban�(Murree)�and�was�participated�by�all�the�branch�managers,�area�managers�and�head�office�senior�management.�
Overall� the� planning� meeting� focused� towards� the� following�dimensions�of�growth;
Growth�Targets:�During� the�planning�meeting,� departmental� heads�presented�their�progresses�and�plans�for�the�coming�year.�To�keep�pace�with�the�market�growth�and�fulfill�own�business�plans,�it�was�decided�to�achieve�a�client�base�of�50,000�by�the�end�of�year�2016-17�with�an�estimated�outstanding�loan�portfolio�of�1.2�Billion�PKR.�All�the�targets�set�during�the�meeting�were�dually�achieved�by�the�team.�
Products�Catalogue:�To�enhance�the�range�of�products�to�better�serve�our�clients,�several�feasibilities�were�discussed�and�feedback�of�the�line�managers� was� recorded.� The� aim� of� the� activity� was� to� enrich� the�product�range�with�new�and�more�suited�products�as�per�the�demands�of� the� valuable� clients.� Approval� of� few� products� in� the� domain� of�education,�livestock�and�health�was�given�by�the�management�while�detailed�feasibility�for�few�other�options�was�suggested.�
Geographical� Expansion:� Keeping� in� view� the� successful�achievements� during� the� year� aimed� at� growth� consolidation� and�process�refinement,�management�planned�to�carry�out�expansion�of�the�services� into� new� geographical� areas� as� well� as� enrichment� within�already� served� areas.� Respective� department� heads� were� asked� to�carryout�basic�feasibilities�as�well�as�area�profiling�of�the�potential�sites.�
�Celebrations�and�Events��
Annual Report for the year ended 30th June 2017 24
Towards�the�end�of�the�year,�this�proved�to�be�very�helpful�in�meeting�the�overall�growth�challenges.
Funding� Sources:� JWS� Pakistan� has� solely� worked� with� Pakistan�Poverty�Alleviation�Fund�(PPAF)�during�the�course�of�her�operations�in�the�microfinance�domain.�It�was�strategically�decided�to�broaden�the�scope�of�funding�sources�for�enhanced�stability�and�growth.�Therefore,�during�the�year�commercial�lines�of�credits�from�banks�were�availed�as�well� as� lines� of� communications� with� international� investors� were�opened.�
Compliance�&�Risk�Management:�To�meet�the�enhanced�regulatory�compliance�requirements�and�manage�the�risks�of�the�business,�it�was�discussed� to� setup� a� new� department� of� compliance� and� risk�management� to� meet� both� the� internal� requirements� of� risk�management� and� external� prerequisites� of� regulatory� compliance.�Down�the�year,�the�proposal�was�materialized�and�a�department�was�successfully�launched.�
Staff�Development:�Rightly�conceiving,�management�also�decided�to�strategically� focus� on� the� staff� development� in� anticipation� of�expansion� in� the� next� financial� year.�HR� department�was� tasked� to�develop� the� staff� requirements� in� terms� of� numbers� as� well� as�requirements�in�terms�of�functional�skills�against�each�job�category.
Annual Report for the year ended 30th June 201725
�World�Poverty�Day�
The�United�Nations�Sustainable�Development�Goal�to��end�poverty�in�all�its� forms� everywhere�� explicitly� recognizes� that� poverty� results� not�from�the�lack�of�just�one�thing�but�from�many�different�interrelated�factors�that�affect�the�lives�of�people�living�in�poverty.�This�means�we�must�go�beyond�seeing�poverty�merely�as�the�lack�of�income�or�what�is�necessary�for�material�well-being�such�as�food,�housing,�land,�and�other�assets�in�order�to�fully�understand�poverty�in�its�multi-dimensions.�The�theme�this�year�selected�in�consultation�with�activists,�civil�society�and�non-governmental� organizations� highlights� how� important� it� is� to�recognize�and�address�the�humiliation�and�exclusion�endured�by�many�people�living�in�poverty.
JWS�Pakistan�adopted�the�same�theme�of��ending�poverty�in�all�its�form��and� organized� a� roundtable� conference� in� Gujranwala.� Participants�included� from� the� circles� of� lawyers,� educationist,� civil� society�organizations,� TEVTA� practitioners,� labour� union� representatives,�media,�healthcare,�businessmen�and�women�entrepreneurs.�
A view of Participants during world Poverty Day.
Annual Report for the year ended 30th June 2017 26
Speaking� at� the� occasion,� Qazi� Shoaib� Alam� Farooqi,� CEO� of� JWS�Pakistan�highlighted�that�poverty�is�not�one�dimensional,�rather�it�is�multi�dimensional.�So,�the�poverty�is�not�just�lack�of�money,�rather�it�is�deprivations�across�range�of�material�and�non�material�services�and�products� including� lack� of� access� to� energy,� education,� Jobs,� living�conditions,�nutrition�and�healthcare.�
Other�participants�agreed�with�the�theme�and�pledged�their�resolves�to�play� active� role� in� eliminating� poverty� in� all� its� forms� and�manifestations.�
Annual Report for the year ended 30th June 201727
3rd�Annual�Agriculture�Conference�2017
A�mega�Agriculture�conference�was�organized�on�April�13,�2017�on�the�very�day�of�BESAKHI,�a�traditional�day�celebrated�by�the�farmers�before�starting�crop�harvesting.�The�venue�was�deliberately�selected�at� the�heart�of�the�farming�lands�to�ensure�maximum�participation�of�farmers�in�the�event.�Conference�started�with�the�recitation�of�Holy�Quran�and�the�speaker�Mr.�Imran�welcomed�the�participants�and�highlighted�the�agenda�of�the�conference.�He�later�on�invited�honorable�Qazi�Shoaib�Alam�Farooqi�(Chief�Executive�Officer)�to�welcome�the�distinguished�guests�and�say�few�words�about�the�event�and�highlight�its�underlying�
JWS Pakistan team receiving guests.
Annual Report for the year ended 30th June 2017 28
Other� speakers� from� the� academia,� industry,� politics� and� farmer�representatives� shared� similar� thoughts�with� the�audience.�They�all�agreed�with�the�agenda�that�without�following�the�modern�methods�of�cultivation�and�harvesting,�per�acre�yield�improvement�shall�remain�a�distant�cry.�
Event�was�further�decorated�with�stalls�set�up�by�various�input�supplier�groups�and�buyers.�Farmers�took�keen�interest�in�various�products�and�briefing�sessions�conducted�by�various�companies.�
�Fatima�Fertilizer�Group �Engro�Fertilizers �Punjab�Seed�Corp. �Fauji�Fertilizers �Jaffar�Brothers �Pak�Arab�Fertilizers �Khair�Din�&�Sons �Arysta�Life�Sciences
A view of speakers during the conference.
Annual Report for the year ended 30th June 201729
Qazi Shoaib Alam (CEO) awarding shields to the honorable guests.
Annual Report for the year ended 30th June 2017 30
�Agriculture�Resource�Center�(ARC)
Right�from�the�inauguration�of�the�agriculture�resource�center�in�April,�2016,� the� centre� has� been� hosting� training� events� for� the� farmers,�linking�farmers�with�input�suppliers�and�providing�technical�services�to�the�farming�community.�In�addition�to�these�free�services,�ARC�has�been�providing�access�to�financial�services�for�the�small�scale�farmers�at�thier�door�steps.�
ARC�is�also�housing�the�facility�to�provide�free�weather�alert�services�for�the�farming�community�throughout�the�year.�
Delegation visiting agriculture resource center.
Annual Report for the year ended 30th June 201731
�Trainings�&�Capacity�Buildings�
Trainings�and�capacity�building�initiatives�were�the�year�around�events�at�JWS�Pakistan.�Human�resource�department�has�been�central�to�these�activities� with� active� support� of� allied� departments� in� making� the�training�and�capacity�building�events�productive�and�impact�oriented.�
View of training events organized by JWS Pakistan.
Annual Report for the year ended 30th June 2017 32
�Free�Health�Camps�&�Health�Insurance�for�Clients
JWS�has�a�history�of�conducting�free�medical�relief�camps�in�not�only�time�of�calamities�but�also�during�normal�days�for�the�betterment�of�communities� where� we� feel� that� health� care� is� not� being� provided�adequately.� These� medical� and� relief� camps� provide� basic� medical�checkup,�medication� as�well� as� guidance� to� the� patients� in� case� of�serious� illness.� Another� important� aspect� of� these� health� camps� is�creating�awareness�among�masses�about�health,�hygiene,�child�care�and�other�seasonal�outbreaks.�
During�this�year�as�well,�JWS�arranged�number�of�free�medical�camps�of�two�days�each�in�far�furlong�villages�of�our�operational�areas.�Clients�appreciated� the�efforts�of� the�company� in� facilitating� them�in�every�possible�manner.�In�addition�to�this,�JWS�Pakistan�has�also�provided�health� insurance� to�all�of�her�women�clients.�This� facility� is�greatly�valued�by�the�clients.�
Annual Report for the year ended 30th June 201733
CITI-�PPAF�Awards
Every� year,� Citi� foundation� UK� announces� awards� for� the� best�microfinance�entrepreneurs�all�over�the�world.��Awards�program�of�this�year� highlighted� the� achievements� of� some� of� the� most� innovative�microfinance� institutions�and�micro�entrepreneurs� in�Pakistan.� JWS�Pakistan�also�participated�in�this�highly�competitive�program�for�the�nomination�of�its�clients.�Credit�to�the�JWS�team,�out�of�fifteen�(15)�best�entrepreneurs�from�all�over�Pakistan,�two�(2)�were�from�JWS�Pakistan.�One�of�the�selected�clients�was�declared�as�national�runner�up�and�other�one�was�the�provincial�winner�from�Punjab.
Selection� of� two� micro� entrepreneurs� of� JWS� Pakistan� highlighted�effective�financial�and�non�financial�services�for�the�clients.�Speaking�on� the� occasion,� selected� entrepreneurs� of� JWS�Pakistan� expressed�their� views� about� the� JWS� program� and� how� it� helped� them� in�transforming� their� typical� activities� into�more� structured�enterprise�processes.� They� also� highlighted� that� the� linkages� and� market�orientation� trainings� of� the� company� also� helped� in� better�understanding� and� strategizing� the� forward� and� backward� market�linkages.
JWS Pakistan clients receiving National Runner Up & Provincial Winner Award.
Annual Report for the year ended 30th June 2017 34
A landmark achievement! 50,000 + Clients
Team celebration achievement of annual target.
PICTURE�GALLERY
Annual Report for the year ended 30th June 201735
Glimpson from the annual iftar party hosted by JWS Pakistan.
Annual Report for the year ended 30th June 2017 36
International delegation visiting JWS Pakistan Head Office
Symbiotic Investor Group during their visit to JWS Pakistan
Annual Report for the year ended 30th June 201737
Memories of various national delegation during their visit to JWS Pakistan
Annual Report for the year ended 30th June 2017 38
Ceremony of providing latest laptops to Area Managers of JWS Pakistan.
Annual Report for the year ended 30th June 201739
Flashback from the Women Day organized by JWS Pakistan.
Annual Report for the year ended 30th June 2017 40
“I don’t create companies for the sake
of creating companies, but to get things done.”
Annual Report for the year ended 30th June 201741
Participation�in�national�and�international�networks�working�for�the�betterment�and�uplift�of�the�poor�communities�has�been�a�passion�at�JWS�Pakistan�since�long.�This�collaboration�across�the�globe�has�helped�us�in�learning�new�dimensions�of�performance�as�well�as�contribute�towards� the� international� best� practices� by� sharing� our� own.� � JWS�Pakistan� has� long� been� collaborating� with� following� international�networks�regularly;�
Affiliations�&�Collaborations�across�the�Globe:�
1.��Banking�with�the�Poor�(BWTP):�
Banking�with� the�Poor�Network� (BWTP�Network)� is�Asia's� microfinance� network� that� works� towards�building� eff icient , � large-scale� sustainable�organizations,� through� co-operation,� training� and�capacity�building�with�the�aim�of�achieving�innovative,�appropriate�and�demand-driven�financial�services�for�the�poor.�The�Network�is�an�association�of�a�diverse�range� of� microfinance� stakeholders� committed� to�improving� the� quality� of� life� of� the� poor� through�promoting�and�facilitating�their�access�to�sustainable�financial�services.�
2.��Microcredit�Summit�Campaign:�
Micro� credit� summit� campaign� is� a� network� of�international� micro� finance� companies� working�
Annual Report for the year ended 30th June 2017 42
towards� pre� established� targets� and� agendas.� JWS�Pakistan� has� been� actively� participating� in� the�campaigns� to�ensure�provision�of�credit� facilities� to�poor� communities� for� self� employment� and� also�helping� in� improving�their�purchasing�power�parity�(PPP).�
3.��Mix�Market:
JWS� Pakistan� actively� reports� performance� data�related� to� social� aspects�of�our� services� to� the�MIX�Market� on� regular� basis.� This� has� been� helpful� in�tracking� the� performance� of�micro� finance� services�towards�the�social�aspects�of�the�development�on�the�global�scale.�
4.���Pakistan�Microfinance�Network�(PMN):�
PMN� is� a� network� of� organizations� engaged� in�microfinance� and� dedicated� to� improving� the�outreach� and� sustainability� of� microfinance� in�Pakistan.�PMN�acts�as�a�disseminator�of�microfinance�information� with� the� aim� of� enhancing� the� scale,�quality,� diversity� and� sustainability� of�microfinance�providers�in�Pakistan.�
5.��Member�Punjab�Microfinance�Network�(PMFN):
The� idea� is� to� gather� institutes� and� organization�working� in� Micro� Finance� sector� for� sharing� their�work.�JWS�Pakistan�was�one�of�the�pioneer�companies�to�establish�Punjab�Micro�Finance�Network�(PMFN).�Mr.�Qazi�Shoaib�Alam�Farooqi�(CEO-JWS)�was�the�first�person�to�chair�the�network.�The�network�is�inclusive�of�organizations�from�the�Punjab�province�in�Pakistan.�
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6.�Pakistan�Centre�for�philanthropy�(PCP):�
JWS�Pakistan�got�certification�of�Pakistan�Centre�for�Philanthropy�(PCP)�in�September,�2010�in�recognition�of�its�efforts�for�alleviating�poverty�from�the�country.�Since�then,�JWS�Pakistan�is�an�active�member�of�the�PCP.�
7.��Social�Performance�Task�Force�(SPTF):�
The�SPTF� is�a�global�membership�organization� that�works� to� advance� social� performance� management�(SPM)� -�a�management�style� that�puts�clients�at� the�center�of�every�decision.�
8.��The�Smart�Campaign:�
The� smart� campaign� is� a� global� effort� to� unite�microfinance�leaders�around�a�common�goal:�institute�client�protection� in� all� that�we�do� �� to�better� serve�clients�and�strengthen�the�microfinance�industry.�
9.��Data�Check:�
Data�check�caters�to�the�specific�needs�of�the�industry,�and� provides� additional� fields� relating� to� the�individual's�identity�and�loan�information.�Given�that�the� typical� loan� period� is� one� year,� the� payment�history�is�limited�to�12�months.�
10.��Creative�Edge�Solutions:�
Provides�state�of�the�art�IT�solutions�and�equipment�to�JWS�Pakistan.�
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Data Check (Pvt.) LimitedSetting the standard in credit reporting
Following� are� the� key� international� and� national� investor� groups�providing� required� investments�and� support� to� JWS�Pakistan.�Their�active� financial�and�moral� support�has�helped�us� in�meeting�all� the�challenges�head�on.�
1.��Pakistan�Micro�finance�Investment�company�(PMIC)�
2.��Pakistan�Poverty�Alleviation�Fund�(PPAF)�
3.��KIVA�(US�Based�social�investor�group)�
4.��Symbiotic�
5.��Allied�Bank�Limited�(ABL)�
6.�Habib�Bank�Limited
Our�Investors�&�Supporters:�
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Shore Bank International (SBI) carried out institutional assessment of JWS
Pakistan on behalf of Pakistan Poverty Alleviation Fund (PPAF). The objective
of the assessment was to critically evaluate capacity of partner
organizations for undertaking higher levels of micro finance operations. The
assessment carried out by SBI covered the effectiveness of management
layers, adequacy of organizational policies, procedures and their actual
implementation in the field.
Based on the detailed review, a comprehensive institutional assessment
report was prepared by SBI dually appreciating and highlighting effective
management control and streamlined business process for undertaking
additional responsibilities.
Assessments�and�Certification
Gallup Pakistan is the country's most respected opinion and socio economic
research organization and is widely quoted in national and international
media. Being an affiliate of Gallup International we have close collaboration
with Gallup associates all around the globe and enjoy the benefit of drawing
upon an international pool of knowledge. Gallup Pakistan conducted
impact assessment of JWS Pakistan to measure the effectiveness and
efficiency of the Micro Finance Program.
Truelift is a global initiative to renew focus on the pro-poor objective of
microfinance. Truelift is a trust mark – in microfinance and beyond – to
signify commitment to positive and enduring change for people living in
poverty. Truelift awarded certification to JWS Pakistan as “Aspirant”
institution under its four milestones on the journey to better serve clients
living in poverty.
Annual Report for the year ended 30th June 2017 46
JWS�Pakistan�has�been�very�active�towards�minimization�of�risks�faced�by� its� staff� as� well� as� clients.� To�meet� this� objective,� company� has�partnered� with� several� insurance� companies� to� cover� the� risks� of�health,� income� loss� and� loss� of� agricultural� crops� under� various�products.� Following� are� the� insurance� companies� engaged� by� JWS�Pakistan�under�its�various�initiatives;�
1.�Saudi�Pak�Insurance�(SPI)�
2.�EFU�Life�Insurance�
3.�ADAMJEE�Insurance�Limited�
Insurance Alliance
Annual Report for the year ended 30th June 201747
The� Securities� and� Exchange� Commission� of� Pakistan� (SECP)� is� the�financial�regulatory�agency�in�Pakistan�whose�objective�is�to�develop�a�modern�and�efficient�corporate�sector�and�a�capital�market�based�on�sound� regulatory� principles,� in� order� to� encourage� investment� and�foster�economic�growth�and�prosperity�in�Pakistan.�
JWS�Pakistan�is�licensed�from�SECP�(as�non�banking�finance�company)�as�per�the�prudent�regulations�of�State�Bank�of�Pakistan�for�the�micro�finance�organizations.�Required�regulatory�supervision�and�foresight�has�been�helpful�in�taking�the�industry�forward.�
Regulator,�Auditors�&�Legal�Advisors�
Securities�&�Exchange�Commission�of�Pakistan:�
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JWS�Pakistan�has�engaged�Azam�Chaudhary�Law�Associates�as�its�legal�advisors.�The�associates�in�the�Firm�are�specialized�in�civil,�commercial�and�corporate�law,�World�Trade�Organization�Agreements,�and�private�and�public�international�law.�Additionally,�the�Firm�has�provided,�and�does�provide,�wider�consultancy�services�in�fields�of�expertise�other�than� law.� The� Firm� has� been� rendering� its� expert� and� specialized�services�mainly�in�the�domains�of�Arbitration,�Power�Generation�and�Energy� Laws,� Banking� and� Financial� Services,� Corporate� Affairs,�Intellectual� Property,� International� Trade� and� WTO� Laws,� Federal�Board� of� Revenue� (FBR)� Taxes,� IT/Telecommunication� Laws,�Environmental� Laws,� Insurance,� Customs� and� Taxation,� Franchises,�Joint� Ventures,� Agency� Advocacy,� Penal� Laws� /� Criminal� Justice,�Litigation,� Trusts� and� Estates,� Privatization,� Project� Advice,�International�Organizations�and�Embassies.
JWS�Pakistan�has�engaged�the�chartered�accounting�firm�of�very�good�repute.� Established� by� a� team� of� public� accountants� from� leading�international�accountancy�firms,�Tariq�Abdul�Ghani�Maqbool�&�Co.�is�engaged� in� providing�wide� range� of� integrated� solutions� to� a� large�portfolio� of� clients� from� a� diversified� activity� segments� within� and�outside�Pakistan.
Our� team� of� experts� comprises� professionals� from� multifaceted�proficient� background� and� experience,� who� effectively� deal� with� a�versatile�range�of�tasks�to�present�practical�solutions�to�the�problems�in�small�to�large-scale�organizations�within�and�outside�the�country.
Company�offers�Auditing,�Taxation,�Management,�IT,�Accounting�and�Legal�&�Secretarial�Consultancy�and�other�related�assistance�to�local�and� foreign� private,� public� and� other� organizations.�We� also� assist�organizations�in�problem�solving�and�providing�practical�and�feasible�solutions.
Tariq Abdul Ghani Maqbool & Co Chartered Accountants
Azam Chahdhary Law Associates
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FINANCIAL�AUDIT�REPORT��17
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JWS PAKISTAN
FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2017
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