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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.

I II III

VII IX XI

ACRONYMS VISION & MISSION OUR VALUES

MESSAGE FROM THE

CHAIRPERSON

MESSAGE FROM THE

CEO

OUR BOARD OF

DIRECTORS

ABOUT

JWS PAKISTAN

OPERATIONAL

HIGHLIGHTS

OUR

PRODUCTS

OUR

DEPARTMENTS

IMPACT

OF OUR WORK

ORGANIZATIONAL

EVENTS

OUR

INVESTORS

FUTURE

ORIENTATION

01 02

16

FINANCIAL STATEMENTSFOR THE YEAR ENDED JUNE 30, 2016

39

BALANCE

SHEET 43

INCOME &

EXPENDITURE

STATEMENT

STATEMENT

OF CHANGES

IN FUND

NOTES TO THE

FINANCIAL

STATEMENTS

TABLE OF CONTENTS

07 10

22 34 36

42 46 47

Allied Bank Limited

Agriculture Loan

Area Manager

Area Office

Annual Staff Retreat

Board of Directors

Credit Group

Capacity Building

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

GNF

HBL

HO

HR

JWS

MC

MF

MFI

MIS

NBFC

OLP

OTW

PCP

PMER

PMFN

PMIC

PMN

PNCC

PPAF

SBI

SECP

SME

Acronyms

I

Vision & Mission

Vision“Sustainable economic development and social empowerment for all”

Mission Financial strengthening and social uplift ofmarginalized segments of society, through an integrated approach thereby providing financial services, capacity building and developing market linkages for them to sustain their businesses and to improve their living standards.

II

IV

Client Focused All of our services & polices are client focused.

BalanceTaking a proactive stand to create and maintain a 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.

Message from the

CHAIRPERSON

VI

Dear Friends,

As Pakistan's economy gears up to gain momentum and deliver sustainable livelihood

and self-employment opportunities for the common man, the diligent Microfinance

sector remains at the forefront of every effort to empower and equip our citizens. This has

further been augmented by the recent developments rather restructuring of the overall

microfinance sector. Pakistan Poverty Alleviation Fund (PPAF) has been transformed into

Pakistan Microfinance Investment Company (PMIC) and it has been made mandatory for

the partner organizations to get registered under section 42 of companies' ordinance as

well as to obtain license of non banking finance company (NBFC).

With the grace of Almighty, JWS Pakistan has achieved both the status of section 42

company as well as license of non banking finance company. This has opened new

avenues of securing investment from the commercial sources and hence putting an end

to the funding crunches faced in the past.

Keeping these transformations in mind, management of JWS Pakistan took a principal

decision at the start of the year to celebrate this year as a year of growth consolidation

and process refinement. I am glad to state that JWS Pakistan has also succeeded on this

front too. Several processes were identified to be redundant and were dually replaced

with more efficient and client oriented processes during the year.

This 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

VII

Dear Friends,

On behalf of the Board, I take pleasure in presenting you the annual report of JWS

Pakistan. Change in name indicates an evolutionary process the institution has been

going through right from its inception in 1992. In accord to the prudent regulations of

Government for the financial sector, management took a bold decision of transforming

the parent NGO into a section 42 company by the name of “JWS Pakistan”. This indeed has

opened new avenues of opportunities for the company.

Envisioning the transformation and allied challenges, management decided to focus on

growth consolidation and refinement of our standard operating procedures (SOPs)

during the year. This was a necessary step to take a pause, think through the recent

developments and concentrate on a more process driven and systematic approach to

attain sustained growth in the long run. This has resulted into more refined business

processes and stocked enough potential energy to go for expansion in the next business

year.

Company has also started diversifying its financing sources and now includes three

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 spread over six districts in Punjab. Few performance highlights for

the year under review include;

OLP of 718 Million PKR

Disbursement of 1.3 Billion PKR

99% beneficiaries include women

Retention rate of 70%

Equal number of areas covered in urban and rural locations

Message from the

CHIEF EXECUTIVE OFFICER

IX

We are aware that we might not have touched lives of too many people in this year, but

we have ensured to bring positive impact on the lives of the poor communities we work

with. To systematically understand the impact of our services on the socio economic

landscape of communities, JWS conducted an impact assessment study with clients who

have signed up for at least three loans. Results of the survey were encouraging and

provided us resolve to keep up the good work as well as improve the grey areas.

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.

Last but not the least, the reason of our existence, growth and outreach is attributed to

our vision of Social and economic development for all. As it is said, “Nobody can help

everyone, but everyone can help someone”. Most of us have the tendency to wait

for someone to prompt us to do good things. As mother Teresa rightly

said, “Do not wait for leaders; do it alone, person to person”; in other

words make a difference to someone's life. There is tremendous

satisfaction in making others happy. Let us give the society

the best. Be a candle, be a hope, be the strength, be an

inspiration, be there when it calls for and make a

difference in others life. With this foresight, we started

Jinnah Welfare Society (JWS) which has now

transformed into JWS Pakistan.

I conclude with acknowledgment of remarkable

efforts of staff, management and board of directors

to help in steering JWS Pakistan forward.

Kind Regards,

Qazi Shoaib Alam

Chief Executive Officer

X

BOARD OF DIRECTORS

Chairperson: Ms. Sabiha Shaheen has been

working as chairperson of JWS Pakistan since

2007. Under her visionary leadership, JWS

Pakistan has scored milestone achievements.

Within the institution, she is known as a

s t r o n g a d v o c a t e o f i n n o v a t i o n a n d

continuous development.

She also heads and is one of the founding

members of BARGAD, a youth-development

organization based in Gujranwala to

p r o m o t e P e a c e , J u s t i c e a n d Yo u t h

Cooperation in Pakistan. She specializes in

youth development and gender and is a key

civil society practitioner since 1997 to put

youth issues on priority agenda in Pakistan

and has helped advocacy campaigns to

design and implement national youth policy

in the country.

Chief Executive Officer: Qazi Shoaib Alam is a

seasoned professional with over 25 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.

A year of Growth Consolidation & Process Refinement!

2015-16ANNUAL REPORT JWS Pakistan

XI

Director BOD: 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

impor tant role in providing strategic

guidelines to the institution.

Director BOD: Mr. Muhammad Shahid is an

educationist by profession and has been

running private institutions successfully. As

member board of JWS Pakistan, he has

i n t r o d u c e d n e w a s p e c t s o f s o c i a l

development in the financial services.

He is also credited with developing outlines

of training and other staff development

initiatives.

2015-16ANNUAL REPORT


JWS Pakistan

XII

This report offers a window of information into JWS Pakistan's guiding philosophy, Vision, Mission and achievements during the year 2015-16. 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.

Annual Report 2015-16



01

JWS Pakistan

1. About JWS Pakistan

Established in 1992, JWS Pakistan is a specialized Non Banking Finance Company

(NBFC), licensed from Securities & Exchange Commission of Pakistan (SECP). Company

has its head office in Gujranwala with branch offices in upper and central Punjab region.

Over the period of time, company has created a memoir of transforming informal

economic activities at the grassroots level into small yet vibrant and viable enterprises.

This has been made possible with our tailor made financial services to meet their capital

needs and non financial services to help them steer their businesses with technical

skills.

Company has well established 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.

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.

2. Operational Highlights

The Financial Year 2015-16 has been a good year for the Company on most parameters.

As stated earlier, the year was planned around growth consolidation and refinement of

business processes to make ourselves prepared for the expansion in the coming years.

All of these parameters were successfully met and brought refinement and

transparency in operations.

2.1. Operational Footprints

Map highlighting currently served and future expansion areas.


02


BAHAWALPUR

RAHIM YAR KHAN

RAJANPUR

DERA GHAZI KHAN

MUZ

AFFA

RGAR

H

MULT

AN

LODHRANBAHAWAL

NAGAR

VIHARI

OKARA

KASUR

LAHORE

SAHIWAL

KHANEWAL

LAYYAH

BHAKKARJHANG

FAISLABAD

TOBA TEK

SINGH

KHUSH

AB

MIA

NWAL

I

CHAKWAL

ATTOCKRAWALPINDI

JEHLUM

GUJRAT

SIALKOT

NAROWALGUJRANWAL

SARGODHA

MANDI

BHAUDDIN

HAFIZABAD

NANKAN SAHIB

SHEIKHUPURA

Currently served

Potential areas for expansion



03

JWS Pakistan

2.2. Portfolio and Disbursement Growth

The Company has expanded its outreach by increasing the penetration in the existing

districts as well as by adding additional staff. This helped in growth consolidation, staff

development as well as in refinement of

business processes.

D u r i n g t h e y e a r u n d e r r e v i e w,

outstanding loan portfolio of JWS

Pakistan stood at PKR 718.8 Million. This

portfolio has been maintained cleanly

with portfolio at risk ration of below 1%.

This clearly highlights commitment of

our team as wel l as strong and

productive client relationships.

Similarly, a healthy disbursement of PKR

1.3 billion (fig. 2) was achieved by the

team through the network of 24

operational branches spread across six

districts.

Both the OLP & disbursement levels

were 100% achieved in light of the

growth consolidation and refinement

plan approved during the annual

strategic planning meeting of the core

management.

Similarly, JWS Pakistan has gradually

increased average loan sizes up to PKR

35,604 (fig. 3) keeping in view the

business needs of clients and their

regular requests.

Increased loan sizes also increased

24,604

29,316

33,73535,604

OLP Growth (Fig-1)

2012-13 2013-14 2014-15 2015-16

800000000

700000000

600000000

500000000

400000000

300000000

200000000

100000000

0

OLP

319,168,900

509,993,964

717,862,304 718,859,036

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

2012-13 2013-14 2014-15 2015-16

Disbursement Disbursement Growth (Fig-2)

532,860,000

845,550,000

1,292,890,000

1,307,475,000

Average Loan Size (Fig-3)

2012-13 2013-14 2014-15 2015-16

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

Average Loan Size

2012-13 2013-14 2014-15 2015-16


04


stakes which were dually managed by our committed and seasoned workforce. These

growth indicators show company's enhanced maturity 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.

2.3. Portfolio & Delinquency Management

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, monitoring

department as well as internal audit departments. Professional client need assessment,

dedicated monitoring and compliance checks have helped 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.

Fig-4 highlights the spread of the portfolio across five key sectors of handicraft,

commerce/trading, services, agriculture and livestock in descending order of their

ranking. These sectors further have stronger local roots as well as wide economic moat

making them excellent choice for lending.

OLP Spread Across Sector (Fig-4)

2.4. Exposure Details

Similarly, JWS Pakistan has systematically spread the portfolio among 24 branches across

six districts of operations. This spread helps in diversifying portfolio risk across a wider

landscape and is another strategy of portfolio management at JWS Pakistan.

F i g - 5 m i g h t h i g h l i g h t g r e a t e r

concentration of funds in Gujranwala

district but they are evenly spread out in

11 branches operating in the area.

Furthermore, Fig-6, 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.



05

JWS Pakistan

District Wise OLD Spread (Fig-5)

Gujranwala

Gujrat

Hafizabad

Jehlum

Mandi Bahauddin

Sialkot

53%

24%

5%

15%

0.01%

3%

GKR JT

KMK

QM

A

SAB

WZR

DCK JP

J

JHU

LMA

MBD SG

R

DSK FTG

FDT

GD

P

PSR

SMB

APC

HZD HZR JP

B

NVK

QD

S

50

40

30

20

10

0

43.1

31.1

35.4

28.9

39.3

31.4

21.6

27.2

0.145

28.3

25.127.5

41.8

32.3

46.6

27.8

37.9

34.1

25.7

29.5

39.8

2.2

35.5

25.5

Branch Wise OLP Million PKR (Fig-6)

2.5. 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-7) 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 2015-16, FSS stood at 126%. This further highlights the

sustainability of lending operations of JWS Pakistan.

2.6. Net worth

Net worth is the amount by which assets exceed liabilities. Net worth 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.


06


Net Worth (Fig-8)

2012-13 2013-14 2014-15 2015-16

300,000,000

250,000,000

200,000,000

150,000,000

100,000,000

50,000,000

0

Net Worth

2012-13 2013-14 2014-15 2015-16

Operational Self Sufficiency (Fig-7)

2012-13 2013-14 2014-15 2015-16

160

140

120

100

80

60

40

20

0

112 110

121 135

OSS

3. Our Products & Services

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;

Enterprise Loan

These loans are specifically designed for poor

and disadvantages groups as a mean to

encourage and assist them in undertaking

income generating activities. Borrowers are

encouraged to form a group consisting of 5-15

members who are not being served by other

microfinance institutions or do not have

outstanding amount more than PKR 70,000.

Beneficiaries of micro credit loan typically

include small businesses operators providing

products or services to their local communities.

Loan range is 20,000 to 50,000 and duration of

this loan is one year. All repayments are collected

through bank deposits.

Operations team regularly conducts monthly

group meetings to ensure productive use of loan

and guide the borrowers about their respective

businesses.



07

JWS Pakistan

Agriculture Loan

Keeping in view the importance of agriculture,

its role in the local economy and issues being

faced, JWS Pakistan introduced agricultural loan

product in January 2010. This product was

developed to solve problems of low per acre

yield being reported in the region mainly due to

non-adequate usage of fertilizers, pesticides,

lack of knowledge about modern cultivation

techniques & access to finance problem.

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. Loan amount ranges from PKR 50,000-

150,000.

Asset Backed Lending

Considering the nature of the micro businesses

in Gujranwala division, JWS Pakistan opted to

pilot run Asset backed lending program of PPAF.

This product was designed to provide necessary

support for purchase of capital assets by the

micro businesses. Product provides financing for

purchase of asset upto PKR 150,000 in easy to

pay 18 monthly installments. Financing is

available in individual capacity for the small

entrepreneurs having thei r own smal l

businesses.

Asset Backed Lending

08



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;

Business Trainings:

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.

Market Linkages Development:

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.

Client Life & Health Insurance:

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 written 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.



09

JWS Pakistan


10


4. Our Departments

4.1. 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.

4.2. Human Resource Management Department

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

Finance & Accounts

Department

Human Resource

Management

Operations

Department

Information

Technology

Internal Audit PMER Department



11

JWS Pakistan

Furthermore, average employee age highlights the young workforce driving the

organization.

4.3. 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.

4.4. Information Technology Department

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.

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.

Indicator

Succession Planning

Average Employee Reten�on Rate

Average Employee Turnover Rate

Average Employee Age

Employee Training Rate

JWS Pakistan

100% for managerial posts

94%

6%

27.5 Years

66%


12


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.

4.5. Internal Audit Department

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.

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.



13

JWS Pakistan

4.6. PMER Department

Planning, Monitoring, Evaluation and Research (PMER) is a newly established department

at JWS Pakistan to complete the triage of check and balance. Department is headed by Mr.

Khurram Hussain having over eight years of experience in program design, management

and evaluation.

Department is responsible for carrying out regular monitoring visits of branch offices as

well as operations. This has helped company in further improving business operations by

frequent insights into the grey areas provided by the PMER department. Apart from the

regular monitoring of the business operations of the company, department also conducts

area profiling, product development studies, impact assessment and other technical

feasibilities for the company.

IMPACT IMPACT IMPACT OF OF OF

OUR OUR OUR WORKWORKWORK

fig. 9 fig. 10


16


During the year, JWS Pakistan carried out an impact assessment study to highlight the

grey and good areas of our program. Assessment was carried out using pre and post

assessment model with women clients who have utilized at least three loan cycles (3

years). Glimpses of impact on life of women entrepreneurs & their businesses are

presented below;

5. Impact of Our WorkM

anag

emen

t

Qua

lity

of P

rodu

ct

Prod

ucti

on

No

Chan

ge

(fig 9-10) Impact of Training on Financial Literacy & Business Performance

(fig 11) Impact on family budget

Health Education Food Seasonal Fruits

12000

10000

8000

6000

4000

2000

0

54 %

Pre Loan

Post Loan

51 %

66 %

41 %

50%

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%

14%

44%

29%

12%

120%

100%

80%

60%

40%

20%

0%

17% 24

%

77%

98%

2%20

%

BankAccount

Productiveuse of loan

BankDeposit

Slip

Pre

Post

fig. 11



17

JWS Pakistan

Furthermore, specific questions were asked to gauge impact towards improvements in

health, education, food and living standard of the houses. Pre and post scenarios

highlighting customer satisfaction are summarized below in Fig -12-15.

It is evident from the quantitative responses that considerable improvement has been

witnessed by respondents. In all the four cases, pre scenarios are dominated by the

response as “fine” which has been dropped to almost 1/3rd and the remaining

responses have recorded against improved situations like “better and best”.

Best

Better

Fine

Bad

Worst

Best

Better

Fine

Bad

Worst

0% 50% 100%

27%

53%

17%

3%

0%

0%

16%

69%

13%

2%

Post

Loa

nHe

alth

Fals

ities

Pre

Loan

Heal

thFa

lsiti

es

Pre Post Health (Fig-12)

Best

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Better

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Worst

0% 20% 60%

23%

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ities

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Pre Post Education (Fig-13)

56%56%56%

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0% 50% 100%

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ualit

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Pre Post Food Quality (Fig-14)

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Pre Post Living Standard (Fig-15)

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Jan bibi is a widow of age 57 and responsible for earning bread and butter for ten (10) dependents. Her husband used to prepare decorative belts used by police and armed forced on daily wages, however, after his sudden demise; she borrowed money from JWS Pakistan and started her own small business back in 2004.

She started her business with one small belting machine, kept on borrowing money from JWS to put in productive use every time and gradually she has been able to install 9 automatic belting machines. Initially she used to prepare belts as per demand specifications and sell back to the middlemen in Gujranwala district. Over the period of time she started to develop her market linkages with the help of her growing sons in the markets of Sialkot, Lahore, Faisalabad and Quetta. This really helped her in expanding the market for her products as well as improved her profit margins.

She highlighted number of challenges in her way forward including;

∙ Untrained Staff: In the starting phase of the business, Jan experienced lack of trained staff and had to work extra hours to meet demand orders. Later on she engaged and trained women of her community with her. This helped her in overcoming shortage of trained manpower in an economical way.

∙ Meeting specifications of Sample: Jan stated that her orders are mostly based on the samples selected by the customers, she therefore has to prepare product as per the customer demand. This however, reduces the pace of production as most of the time product is new and workers are required to be careful. However, years and years of experience has helped her workers in quickly adopting to new demands.

∙ Getting rid of middle men: In the start of the business, she relied heavily on middleman to get sale orders and quickly realized that bulk of the margin is retained by them. She therefore started establishing contacts with retailers and bypassed the middleman to earn her due reward over the period of time.

∙ Gaining financial leverage: During the troubling times instead of sitting idle and doing nothing, she regularly availed loans from JWS Pakistan and kept on putting equity injections into her business. This resulted in increased working capital, raw material inventory as well as spread of her business over the period of time.

Her hard efforts, commitment and struggle in the right direction gradually helped her overcome all of the challenges in her way one by one. She proudly claims that her business helped her in constructing her own home, buy a motorbike for son, and arrange marriage of two daughters as well as in purchasing a small plot of 2.5 marls out of the profits.

5.1. From Desperation to Employer of 11 Workers



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JWS Pakistan

Impact of the 7 years

of JWS's loan program on her household economy is evident from the graph below; fig. 16


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The story of Cathreen, is another glimpse of success achieved by a helpless woman. She is 45 years of age and manages a small business of handmade cricket balls at her home. Gradually she has been able to employ around ten (10) women of her community in business.

The business of cricket ball making is all about taking orders from the factory in Sialkot and then stitching the leather pieces around the rubber ball to shape them as the final product. She explained the problems of lack of material and finances to start this business at home in the start, however, with the gradual funding from JWS Pakistan, she slowly got hold of the situation.

At present she has around 7 stitching platforms and plans to purchase more for the women who come at her home to earn livelihood. With gradual improvement in her business, she has been able to bring considerable improvements to her life;

Speaking about future intentions, she stated that she wants to purchase her own material, make a complete piece of ball and sell it in the market with her own name. She is confident that this initiative shall help her in availing higher profit margins by bypassing the middleman. Meanwhile, she will continue to work with the factory to offset the risks or setbacks during the initial period during which she introduces her own brand of product.

5.2. Cricket Balls for Life

Impact of Loan

90000

80000

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60000

50000

40000

30000

20000

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0

Revenue Income Saving Food Education Health Clothing

Pre Loan

Post Loan

fig. 17

80000

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JWS Pakistan


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6.1. CITI-PPFA Award

for Most Successful & Innovative Entrepreneurs

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, three (3) were from JWS Pakistan.

Selection of three 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.

6. Organizational Events



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JWS Pakistan

Selected entrepreneurs were operating model businesses in the domain of football stitching, woolen thread making and preparation of ready made masonry material.

Selected enterpenure and credit officers with CEO & GM Finance, JWS Pakistan


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“Celebrating Success Together” was the theme for the

9th Annual Staff Retreat at JWS Pakistan. The colorful

and well planned event was organized on April 30,

2016 at Rachna Pearl Hotel. Event was participated by

300 employees and honorable guests from civil

society as well as members of board of directors.

Colorful event was organized by the company to;

Recognize efforts of the team

Provide an event of rejoice and refreshment

away from busy professional life

Promoting family culture and values &

Celebration of a successful year

Speaking at the occasion, Chief Executive Officer JWS

Pakistan Mr. Shoaib Babar welcomed all the

distinguished guests in the colorful event. He

highlighted the year around hard work of the entire

JWS Pakistan team and congratulated them on

achieving all of their goals. Highlighting the

transformations taking place in the financial sector, he

cautioned entire team of JWS Pakistan to knot their

belts and be ready for accelerated expansion in the

year to follow.

He also announced several staff benefits packages

including salary increments, staff health insurance

and other benefits. All of the staff members

a p p re c i ate d t h e co m m i t m e nt o f t h e s e n i o r

management to facilitate them in every possible

manner. Event was solely planned by the staff

members and had following key themes;

6.2. Annual Staff Retreat



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JWS Pakistan

Musical Concert: Professional DJs were hired by the

company for the entertainment and enjoyment of the

staff and guests. Musical group performed really well

and played variety of songs as per their plan as well as

on the demand of the audience.

Bumper Draw, Umrah Ticket: JWS Pakistan announced

a bumper prize of Umrah Ticket through the lucky

draw. Later towards the end of the event, a draw was

made and a young credit officer won the prize. He

thanked the management for the gift and paid good

regards to the organization.

Eating Competitions: To promote staff participation

and create an enjoying event, an eating competition

was organized by the event managers involving area

managers from the field staff. This time the winner was

the area manager Mr. Abid Tufail. Winners were

presented beautiful gift hampers.

Fun Games: Participation of the staff members was

further enhanced with thrilling and fun games that

not only created an environment of fun but also

promoted employee's resolve for winning.

Staff Benefits and Bonuses: CEO of the organization

announced staff benefits for the organization. A salary

increment of 10-25% was declared for all the staff

members along with other benefits.

Lunch: Towards the end of the event, delicious lunch

was served that provided an excellent environment

for the staff and guest members to network and enjoy

food.


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JWS Pakistan


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6.3. Kissan Conference

A mega Agriculture conference was organized on April 14, 2016 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 the head of the organization, Qazi Shoaib

to welcome the distinguished guests and say few words about the event and highlight

its underlying objectives.

Qazi Shoaib Alam (Chief Execu�ve JWS Pakistan) Qazi Shoaib Alam greeted the dis�nguished chief guest, member board of directors, representa�ves of line departments, fer�lizer and pes�cide companies, poli�cal and administra�ve �ers, research ins�tu�ons and farmers. Highligh�ng the importance of the agriculture sector he stated that Pakistan is one of the few countries globally who have been declared the food basket of the world. This puts greater burden on our shoulders to come up with the expecta�ons, however, this shall not be possible with the tradi�onal ways and we must adopt modern farming technologies, inputs and methods to increase yields and quality of produces.



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JWS Pakistan

He urged farmers to get benefit from the program and the facilities that JWS Pakistan

has been providing to them at their door step. He further stated that JWS is working on

several initiatives to provide maximum relief to farmers and improve their socio

economic conditions including but not limited to the following;

Milk Collection centers: Qazi Shoaib Alam further highlighted that JWS is planning to

establish milk collection centers at various places to help farmers sell milk on better

prices. These milk collection centers shall be equipped with chillers and shall be a

revolutionary step in the local dairy industry. This intervention he explained shall

not only improve the milk production but shall also create employment

opportunities for the local people.

Weather Alert Forecasts: Highlighting another ongoing initiative of JWS, he stated

that farmers are being provided free weather alert forecasts by the organization.

Farmers get a weekly forecast on their mobiles. This is helping farmers to plan their

farming activities keeping in view the weather conditions.

He then urged farmers to benefit from the program, visit stalls of companies, make

linkages with the extension departments and other stakeholders to understand about

the latest technology as well as the best practices. Later on number of participants from

the participating extension departments, input suppliers and research organizations

expressed their views and shared very practical tips.


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Institutional Participants of Agriculture Conference

Water & Irrigation Department

Input

Suppliers

ChaudharyKhair Din

& Sons Fauji

Fertilizer Company

EngorFertilizer Company

Punjab SeedsCorporation

Fatime Fertilizer

Buyers

Jaffar Brothers

Pak ArabFertilizer

Arysta LifeSiences

Livestock Department Agriculture Department

Fishers Department

Line Department

AdaptiveResearch Farms

RicePartners

Ltd.

FarmDynamics



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JWS Pakistan

6.4. Agriculture Resource Center

Taking practical steps for the development and modernization of agriculture in the

region, JWS Pakistan took an innovative step by establishing an Agriculture resource

center (ARC). Center is located in the hub of the agricultural lands and far away from the

main cities to ensure that it benefits to the small and helpless farmer.

The center shall be a source of information and inspiration for the farmers who may visit

the center to get information about crops, inputs, extension departments, access to

finance, training events as well as signup for free weather alert services. JWS Pakistan

has productively used technology by providing free weather alerts as well as forecasts

for the farmers to plan their agricultural activities.

The center is also equipped with a training hall where regular capacity building

programs shall be conducted for the farmers. Center was formally opened on April 14,

2016 by the CEO JWS Pakistan, Qazi Shoaib Babar along with his team members.


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6.5. 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.



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JWS Pakistan

6.6. 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.

Donor organizations have special role in development sector of Pakistan. Without donor

support it is next to impossible for any development organization to establish and

sustain its operations for a longer period of time.

Development organizations can at best craft a mission, identify issues and challenges

and develop a strategy for delivering results but cannot raise required funds to ensure

implementation of the programs. Therefore all organizations need ample resources and

financial support to ensure implementation of their development programs at grass

root level.

On this front, JWS proved to be fortunate as soon after its incorporation, it started

receiving financial support from the donors. During the course of its history, following

donor organizations have supported JWS in delivering poverty alleviation programs;

Pakistan Poverty Alleviation Fund (PPAF)

KIVA

South Asia Partnership (SAP-PK)

The Asia Foundation (TAF)

Aurat Foundation (AF)

Catholic Relief Services (CRS)

Financial Sector Strengthening Program (FSSP)

European Commission (EC)

Agri Support Fund (ASF)

Trust for Voluntary Organization (TVO)

International Fund for Agricultural Development (IFAD)

7. Our Investors


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After few years in 2001 JWS signed a partnership agreement with Pakistan Poverty

Alleviation Fund (PPAF). It proved to be a turning point for the organization. Since then

PPAF has been supporting the organization not only financially but technically and

morally as well.

Pakistan Poverty Alleviation Fund (PPAF)

The Pakistan Poverty Alleviation Fund (PPAF) represents an innovative model of public

private partnership. Incorporated under section 42 of the companies' act 1984 it follows

the regulatory requirements of the Securities and Exchange Commission of Pakistan.

The fund focuses on poor rural and urban communities, with specific emphasis being

placed on gender and empowerment of women. Benefits accrue directly to the

vulnerable through income generation, improved physical and social infrastructure,

and training and skill development support.

KIVA

KIVA is an international organization from USA that links micro finance borrowers and

lenders globally. In order to perform such operations, it carries out extensive due

diligence to identify and sign partnerships with leading micro finance institutions in

developing countries. These institutions are then integrated with KIVA lenders using a

state of the art web based portal.

By the grace of God, during the year 2014-5, JWS was one of the pioneer organizations

from Pakistan to sign partnership agreement with KIVA. The agreement has pledged

provision of credit line for the clients of JWS. The partnership further highlights trust

extended by international organizations in the policies and procedures of Jinnah

Welfare Society.



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JWS Pakistan


01




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JWS Pakistan

An annual strategic planning meeting was organized towards the end of the financial year 2015-16. All of the parameters achieved during the year were discussed and future course of action was outlined in the meeting. Salient features of the next year's plan included;

Products Catalogue:

JWS Pakistan has been operating three products over the period of last few years. Keeping in view the social developments and boom in the economic activities at grass root level, management decided to enrich the products catalogue in the next financial year. New products were conceived to be introduced in education, livestock, health and business sectors.

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.

Funding Sources & Regulatory Compliance

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. It was also decided to chalk out the clear reporting requirements of SECP and fully comply with it.

Staff Development:

Rightly conceiving, management also decided to massively 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.

8. Future Orientation

FinancialFinancialFinancial

REPORTREPORTREPORTYear 2015-16Year 2015-16Year 2015-16

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JWS PAKISTAN

FINANCIAL STATEMENTS

FOR THE YEAR ENDED JUNE 30, 2016


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JWS Pakistan

6-Ahmad Pura, Nomania Road, Gujranwala (52250) Pakistan.

Mob: +92 300 643 1650, 345 651 0010

Email: [email protected]

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