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PAT

People’s Action for

Transformation

Annual Report

2016-2017

No. 4, A-Block, St. Paul’s Complex, Bharathiar Salai, Trichy –

620001 Phone and Fax: 0431 2413434 E-mail: pattrust@patgroup.org

Web: www.pattrichy.org

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Vision

PAT aspires to be a sustainable

organization, empowering the urban

and rural poor, economically and

socially irrespective of caste and creed

Mission

To enable the urban and rural poor

attain sustainability, by creating

livelihood opportunities through

delivery of microfinance and related

support services, by fair and

transparent systems

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CONTENTS

1. PAT- General Information 4

2. Organizational Milestones 6

3. The Leadership 7

4. Introduction 8

5. Digital Economy and Financial inclusion.

6. SHG Financial Inclusion 9

7. Women Empowerment for social transformation 9

8. Microfinance and Women Empowermet 10

9. PAT IN 2016-2017 11

10. PAT Profile 11

11. Portfolio Distribution 12

12. Utilization of Loans 12

13. Efficiency Analysis 13

14. Funding Partners 13

15. Development Programs 15

16. Child Development Error! Bookmark not defined.

17. Education Empowerment 16

18. Employability Skill Training 17

19. Healthcare Program 18

20. Eco-friendly Program 18

21. Marching On... 18

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PAT- General Information

NAME OF THE ENTITY

PEOPLE’S ACTION FOR TRANSFORMATION (PAT)

REGISTERED OFFICE

No. 4, A-Block, 1st Floor, St. Paul’s Complex, Bharathiar Salai, Trichy Corporation, Trichy District, Tamil Nadu – 620001

CONTACT DETAILS

Phone/Fax : 0431 – 2413434 Email : pattrust@patgroup.org Web : www.pattrichy.org

REGISTRATION STATUS

Legal Status : Registered under the Indian Trust Act Reg. No. & date : 107/97, 02/05/1997 Tax Exemption : Registered under 12A FCRA No & date : 076040280; 28.09.2001 Details of PAN : AAATP4968N

FUNDERS OF PAT

1 Ananya Finance for Inclusive Growth Pvt. Ltd, India. 101, Sakar I Building, Opp. Gandhigram Station, Ashram Road, Ahmedabad

AAhmadabad – 380009.

2 Maanaveeya Development and Finance Pvt. Ltd.

Plot No. 197, Prasasan Nagar, Jubilee Hills, Road No.72, Hyderabad – 500

033

3 Indian Overseas Bank Cantonment Branch, Trichy – 620 001

4 State Bank of India. Kumbakonam Bazaar Branch, Tanjore District - 612001

5 NABKISAN Finance Limited. Ground Floor, NABARD TNRO, Building. No.48, Mahatma Gandhi Road,

Nungambakkam, Chennai – 600 034.

6 Micrograam Social Development Foundation. 427, 5th Cross, J P Nagar III Phase, Bangalore - 560078

7 ICICI Bank (BC Model)

8 IDBI Bank Limited. (BC Model)

9

Karur Vysya Bank, Cantonment Branch, Trichy

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From the President,

Warm greetings from the People’s Action for

Transformation.

Living and working in a momentous time in

the economic history of India, I consider it a

great privilege to present this report to the

board, partners and well-wishers. We are

proud to be part of a great movement that is

underway in India. NABARD’s Status of

Microfinance in India 2016 – 17 has noted

that India’s ‘SHG - Bank Linkage Programme is

the largest microfinance programme in the

world because of its sheer size and population

it touches’. It is ‘the most widely participated

developmental programme in the country and

perhaps in the world for the large number of

channel partners, their grass root workers,

Govt agencies and banking outlets involved.’

The fiscal that we have just crossed has been

quite eventful for the microfinance sector in

India. Despite the demonetisation of Specified

Bank Notes adversely affecting the

institutional credit flow to SHGs across India

and slackening the microfinance business, PAT

was able to do well by achieving its highest

portfolio of ₹ 57.4 Crores - thanks to the

unqualified support of the SHG members and

diligence of the staff team.

PAT has steadily progressed in the areas of

women and child development, and financial

inclusion since 2 May 1997, the day of its

registration as a Trust. Various programs

directed towards women empowerment,

child development and youth career

advancement enabled PAT to make positive

contributions to the society. The next year the

trust commenced organizing women around

SHGs for enhancing their leadership and

administrative capacities through discussions,

decision-making and management of their

own groups. PAT also facilitated training and

development of their occupational skills

leading them to be resourceful micro

entrepreneurs. In 2000 the Tamil Nadu

Corporation for Development of Women

came alongside PAT to provide bank linkages

to SHGs formed by PAT, a great step forward

in facilitating the door-step availability of

credit to the marginalized besides breaking

the monopoly of informal financiers.

We undertook our 4th rating this year to

evaluate our standing as a business house and

M-Cril awarded us with β+ rating. Though this

is appropriate for our stage of growth, it also

challenges to be vigilant in upgrading our MIS

systems and processes. The MFINESSE for

managing MIS is now integrated in the

organization.

Commencing direct remittance of loans to the

individual beneficiary account through NEFT

transfer became a reality this year. Besides

reducing the footfalls in the branch, this has

made funds transfer quicker, safer and

transparent. Similarly, we have streamlined

the technological essentials of the BC model

that we have successfully been running for

the past three years in a row. We have

expanded our partnership base and have

added United India Insurance Ltd and LIC to

further extend the insurance service to our

members.

PAT has also continued the environmental

protection sensitisation, child development

efforts where we provide them with

complementary education and the skill

development projects for young people. I

present this report with a deep sense of

gratitude to the almighty.

Thank you,

President

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Organizational Milestones:

1998 - Towards women empowerment, starts forming Self Help Groups (SHGs)

2000 - Starts SHGs Bank-Linkage Programme in association with Tamilnadu Corporation for Development of Women Limited.

2003 - Commences direct lending through its Micro Finance Programme with the help of fund received from Ananya Finance for Inclusive Growth Pvt. Ltd., Ahmedabad

2006 - Adds one more funding partner, M/s. Maanaveeya Development and Finance Pvt. Ltd, Hyderabad

2008 - Agreement with Birla Sunlife Insurance Co. Limited for insurance cover for SHG members

2009 - 1st Rating done by M-Cril with “Beta” grading

2009 - Commercial banks like Indian Overseas Bank and State Bank of India start funding

2010 - Karur Vysya Bank extended their term loan

2010 - Installed a software called “mFinesse” supplied by Penta Software House to handle the Loan Processing and Loan Tracking

2010 - 2nd Rating was carried out by M-Cril with “Beta Plus” grading

2010 - Second Loan from Indian Overseas Bank

2012 - Indian Overseas Bank and State Bank of India gives further loans.

2012 - As a sub-aggregator of ESAF Micro Finance and Investments Pvt. Ltd, Kerala started distributing NPS-Swavalamban, the Government of India, Old age social security Scheme.

2012 - Partnering with Bajaj Allianz Life Insurance Company Limited for availing insurance by its clients

2013 - Becomes Business Correspondent for IDBI Bank Ltd.

2013 - 3rd Rating was carried out by Crisil who awarded “mfR5” grade

2014 - Micrograam Social Development Foundation, Bangalore based Agency started lending to SHGs for the purpose of consumer durables

2014 - NABKISAN Finance Limited sanctioning a term loan to Activity Based Groups

2014 - Partner with Mahindra Old Mutual Life Insurance Limited for insurance coverage.

2014 - Started its Clean Energy Initiatives

2015 - Partners with United India Insurance Company Ltd for livestock coverage

2015 - Starts the information technology process for BC automation.

2016 - Adds LIC of India as another partner for insurance coverage.

2016 - All the branches are equipped with security alarm (online), as a measure of increasing safety.

2016 - 4th Rating was carried out by M-Cril with “Beta Plus” grading.

2016 - Achieved the highest portfolio of Rs:57.4 Crores despite de-monetization impact.

2017 - Cashless transaction in disbursement of loan to members to their individual account is achieved.

2017 - Software has been upgraded for handling BC operations. The entire portfolio is handled in a standardized single software enabling us to have the consolidated reports for smooth proceedings.

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The Leadership Mr. R. Stephen Francis Xavier: He is the president of the Trust as well as the Chief Functionary for the Microfinance operations. He has several years of experience working with NGOs and has

training in MFI governance, Financial Management, Internal Audit and Controls, Microfinance Literacy, Micro enterprises development, Accounting and Auditing standards.

Mr. H Regis: The secretary of PAT Trust, is a businessman keenly interested in the community development activities of the organization. He was instrumental in building relationships and raising support for the CDP programs.

Dr. V.Iyappan Shankar: He is an executive board member of PAT and has been overseeing the Child Development Project of PAT. He has been especially

instrumental in mobilizing funds from the commercial banks.

Ms. A.X. Anne Jose Patricia: She manages the finances of the Microfinance operations. She is a resource person for PAT and has been trained through various Microfinance related workshops.

Mr. R. John Rajasekaran: A tax consultant by profession, Mr John provides advice in matters related to internal audit and controls.

Mr. S. Joel Mecir Roy, B Tech. Chief Operating Officer: The erstwhile Head of the Asset Optimisation team of Vedanta Ltd., he has qualified himself as an auditor for Asset Optimization. He has brought in his skills and experience to play in the operations of the organization.

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INTRODUCTION “She considers a field and buys it; out of her

earnings, she plants a vineyard.

She sets about her work vigorously; her arms

are strong for her tasks.

She sees that her trading is profitable, and

her lamp does not go out at night.”

Hebrew proverb, c. 1000 B.C.

The vision of an enterprising and emancipated

woman has delighted people’s mind from

time immemorial. In the recent times,

Muhammad Yunus, the Bangladeshi social

entrepreneur, civil society leader and Nobel

laureate, pioneered the microfinance

intervention among the underprivileged

women in his country. He demonstrated that

the hidden talents, capacities and

entrepreneuring spirit of rural women could

be unleashed by placing in their hands the

power of finance. Subsequently, Individuals,

NGOs, Corporate and Governments, having

seen the immense possibilities of this new

social revolution, have taken this concept of

microcredit and microfinance forward in such

a great way that now globally there has been

a ‘no turning back’ from the practical women

empowerment that he set in motion.

NABARD’s current Microfinance Status report

notes that microfinance “...act as an

important conduit for extending financial

services to ... individuals or members of

SHGs/JLGs”. The report further notes that, “...

the quantum of credit made available to the

poor and financially excluded clients has gone

past ₹. 60, 000 crore and number of clients

benefitted is close to 40 million as of March

2017”. Concerning the partners engaged in

promoting SHGs there are more than 100

Scheduled Banks, 349 District Cooperative

Central Banks, 27 State Rural Livelihood

Missions and over 5000 NGOs. The report

notes that ‘MFIs are more aggressive and

innovative in reaching out to the rural poor

with well-oiled distribution channels as

compared to the formal banking system ...’,

It is evident that the microfinance sector in

India has shown unprecedented growth over

the past two decades. Despite its teething

troubles, regulatory hitches and incessant

economic turbulences, the microfinance

scene continues to have a promising future in

India. Though the lending operations of many

MF institutions were adversely hit due to the

demonetization of SBN( Specified Bank Notes)

declared on 8 November 2016 PAT was able

to serve its clients without let or hindrance in

this financial year. The twenty years of PAT’s

involvement in nation building, through

community transformation activities, has

been quite rewarding.

It is with confidence that PAT continued its

child development, women empowerment

and skills development for youth. SHG-

Microfinancing based financial inclusion

programme continued to be the centre of PAT

programs this year as well.

DIGITAL ECONOMY AND

FINANCIAL INCLUSION

Within a span of the past 20 years,

telecommunication services underwent two

revolutions in quick succession – landlines

gave way to mobile feature phones in the

early 2000s and smart phones almost

replacing the feature phones. The universal

access to telecommunications and rapid

advances in digital payment systems has

created opportunities to connect poor

households to affordable and reliable financial

tools through mobile phones and other digital

interfaces.

The government of India is attempting to

effect financial inclusion through the three-

pronged strategy using digital technologies

called JAM (Jan Dhan (banking), Aadhar

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(biometric identity) and Mobile (transactions).

The, biometric based ‘Aadhar’ now facilitates

KYC compliance as well as authenticate

financial transactions. Technology now effects

quick payment infrastructure – like online

payments and mobile wallets. In addition to

saving the cost and time of services and

facilitating savings by bypassing liquid cash,

digital services help to track fund flows,

reduce theft and corruption and through

direct remittance places the cash exclusively

in the hands of those who deserve it.

Computer based automatic reminders

received digitally helps people to take

appropriate action concerning their credits.

PAT has been quick to respond to these

developments by embracing digitalisation for

financial inclusion. Besides implementing cost

effective MIS systems that has simplified and

quickened loan transaction process, PAT

transfers the loans of all PAT beneficiaries to

their accounts through NEFT. We are

constantly seeking to upgrade the technology

to facilitate the best and quickest possible of

services to the clients.

SHG FINANCIAL INCLUSION SHGs, being self-governed and peer-

controlled informal fellowships of socio-

economically homogenous families have a

significant role in poverty alleviation.

Interacting with other women in the group

and resource persons members acquire

knowledge, awareness and motivation. SHGs

promote capacity building, build leadership

abilities, develop life skills, inspire

entrepreneurship and enhance governance

capabilities besides increasing co-operation

among the members – all which are

constituents of sustainable development.

Other aspects of SHG activities are creating

awareness of rights and privileges of women,

value of the girl child and her education,

awareness on health, hygiene and

environmental concerns. SHG groups are,

further, the appropriate platform for financial

empowerment of the women by organizing

them around credit and related activities.

Across Tamil Nadu PAT has 2676 active SHG

groups, which women organised themselves

around these activities leading to sustainable

livelihoods through microcredit. This report

has included some stories of people who have

been benefited from the financial inclusion

activities of PAT.

WOMEN EMPOWERMENT FOR

SOCIAL TRANSFORMATION Studies have shown that 70% of world’s

poorest people are women and just because

of gender inequality, they are underprivileged

as compared to men. Especially in the

developing countries such as India, they are

excluded from formal financial system as seen

from the fact that only 37 percent have bank

accounts as compared to 46 percent men.

Women in India still do not have a say in

household matters.

Woman has been suppressed under custom and law

for which man was responsible and in the shaping of

which she had no hand. ...women have as much

right to shape her own destiny as man has to shape

his. ... It is up to men to see that they enable them

to realize their full status and play their part as

equals of men. - Mahatma Gandhi

Women empowerment involves creating a

social environment where women can take

decisions and make strategic choices in areas

that directly affect their lives either

individually or collectively. It is a social culture

where women gain better access to

intellectual (knowledge, information, ideas)

and financial resources, control over

materials, personnel and processes – leading

to social transformation.

Women empowerment programs of PAT that

started in1998 has been progressive and

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steady. The development

programs initiated by PAT proved

to be immense success and the

financial inclusion was a natural

outcome. PAT continues its

community development and

women empowerment activities

complementing it with capacity

building and credit plus services.

PAT committed to self-reliance of

the women, extends skill and

micro enterprises training to

them. PAT has established

tailoring centre for women at

Thirupanandal, Aduthurai in

Thanjavur District and

Melapudur, Trichy covering both

rural and urban areas where

100 women received training in

the trade and started their own

business activity.

PAT has over 32000 women who

have availed its credit facilities,

most of which go for starting new

enterprises of which job creation

is another outcome. This spiral of

development ultimately leads to

rural poverty mitigation.

MICROFINANCE AND

WOMEN

EMPOWERMENT. Traditionally the rural poor had

quick access to funds from the

informal banking system to meet

their financial emergencies that

push the borrower to a debt trap.

Microfinance emerged as a game

changer for developing

economies, facilitating women in

obtaining financing with ease.

Microfinance combined the

flexibility and availability of funds

‘She provides food for her female servants’. - Proverbs

Pushparani – a study in Sustainability

The busy fingers of 50 year old Pushparani deftly mesh the

wetted leaflets of dried halves of coconut fronds, weaving

the mats that would soon become the roof of house or the

fence of a garden – a traditional practice is some parts of

South India. Spaced conveniently in the long rectangular hut,

roofed by the same material that they weave, sit with her

equally dextrous colleagues, plaiting frond after frond and

stacking the mats in neat arrays. To all appearances, an

owner of the outfit might have employed Pushparani and her

colleagues to make the mats from coconut fronds, but this

time around, she is the employer and her colleagues are the

employees.

Weaving coconut fronds was the only skill that this mother of

Vinoth,28, and Shalini, 16, knew and did ever since she was

20 years of age, living in their own house with Samithurai, her

husband, who had looked after the business as well as the

farming in the 2-acre land that they owned. Nevertheless, the

sudden demise of her husband left Pushparani lonely and in a

great financial strait.

Fortunately, PAT had started forming SHG groups through its

Aduthurai branch and was providing microcredit to

underprivileged women. She became one of the 18 members

of the ‘JESUS’ SHG two years ago. PAT provided with loans

sufficient to develop her traditional coconut frond mat

business. Her current loan amount is ₹25000. As the business

improved, she hired her own SHG members and provided

them with weaving job on daily wages.

The case of Pushparani is a sparkling illustration of a

sustainable credit. A micro loan in the hands of an industrious

entrepreneur has not only multiplied in her hands but also

provided means of livelihood to others in the community,

thus creating a progressive spiral of development.

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from the village moneylender with the

transparency of institutional credit. Doorstep

availability of credit through SHG-JLGs has

now become a breakthrough for women

empowerment. Funds became available to

the unbanked, which was repayable in

convenient instalments along with regulated

interest.

Access to financial sources, besides helping

the woman to gain respect in the society, has

also created a social environment where

women became partners in making strategic

decisions on matters that decided the family’s

destiny. By paying off a debt, meeting a

lifecycle need, making an investment or

starting an income generating activity many

women were able to lead their families out of

their cycle of poverty.

Experience around the world indicates that

woman borrowers are responsible and

prudent investors. Women constitute 97% of

Indian microfinance clientele and 80 % of

their loans are used for income generation

purposes. Among the thirty two thousand

women clientele of PAT, a total credit of ₹.

57,40,33,880 has been distributed. They have

invested their loans on projects that gives

good returns, enabling them to make timely

repayments and use the profits for activities

related to poverty alleviation.

PAT IN 2016-2017 Cumulative disbursement of ₹ 284 crores

to 2 lakh 23 thousand loan accounts

₹ 57.4 Crores portfolio is the highest ever

- despite the impact of de-monetization.

90% or PAT’s ‘all women’ borrowers are

rural.

“Beta Plus” grading awarded by M-Cril in

the 4th rating of PAT

Direct online remittance of loans to

members’ bank accounts.

PAT PROFILE PAT INFRASTRUCTURE

Branches 18

Districts covered 7

Panchayaths reached 451

Groups 2,676

Members in the groups 38,798

Active Borrowers 32,202

Rural 28,660

Urban 3,542

Field staff 71

Total staff 115

The newly started 4 branches have increased

the geographical spread to 2 more districts

and 108 more Panchayaths thus bringing the

total extend to 7 districts and 451

Panchayaths. This year witnessed 25%

increase in PAT’s branches and coverage, 20%

increase in SHGs, group membership and rural

members in the groups and their average loan

outstanding and 42% increase in their average

loan size – evidence to the financial

empowerment of the rural poor women

having taken priority.

32,000 PAT borrowers together have availed ₹

50 crores in the year which is an 11% percent

increase from the last fiscal. The quantum of

average loans availed by each member also

has gone up to around ₹29000 per person – a

leap of 42% from the last year’s ₹14000. The

0

10

20

30

40

50

60

70

2014-15 2015-16 2016-17

PAT BORROWER GROWTH IN THOUSANDS

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mean loan outstanding currently shows an

increase of 22% from the previous year and

stands at ₹ 18000 per person. The higher

loans indicate the consistency in the

repayment of the loans by the members and

the robustness of the PAT groups.

PORTFOLIO DISTRIBUTION

PAT’s ‘all women’ borrowers are spread

across 7 districts of Tamil Nadu viz. Ariyalur,

Trichy, Tanjore, Nagapattinam, Thiruvarur,

Thruvallur and Cudallore. 71 field staff

operating from 18 branches oversee the

governance of the 2676 groups and provides

the training to 39 thousand members 83% of

whom are PAT borrowers.

UTILIZATION OF LOANS

As an organization involved in grassroots level

financial inclusion it is quite rewarding to note

that 80% of the loans have gone into

agriculture. In the event of falling food

production, the vegetables, cereals grains

produced by the women cumulatively play a

major role in ensuring food security, which

incidentally is an important national agenda

as well. The sector has shown a marginal

increase of 3% over the past year.

One fifth of the

loans have gone for

Small businesses

and service sector.

Many women have

started businesses

or put up shops selling grocery, vegetable and

selling tea and refreshments. One remarkable

story is Pushparani’s who employs other SHG

members to work with her in making and

selling matted roofing materials from coconut

fronts. Service sector loans have been taken

for various purposes ranging from

photocopying to beauty parlours. Thus all the

loans are used to serve the public in their life

cycle needs, whether it is food, clothing,

shelter or providing for the comforts of life.

Districts and Branches

SHG Members and

Borrowers

Loan Portfolio

(Cr.)

%

Port-

folio

Ariyalur 5 14797 11571 21.69 37.79

Trichy 2 5057 4644 7.10 12.37

Thanjavur 6 14938 12512 21.71 37.82

Nagapattinam 1 1751 1540 2.84 4.95

Thiruvarur 2 1129 967 1.88 3.27

Thiruvallur 1 656 542 1.27 2.20

Cuddalore 1 470 426 0.91 1.59

Total 18 38798 32202 57.40 100

PAT FINANCIALS

Loans disbursed during the year 17,263

Loans disbursed during the year (₹ Cr.) 49.52

Average loan size (₹) 28,686

Average loan outstanding (₹) 17,826

Loan portfolio outstanding (₹ Cr.) 57.40

Outstanding borrowings (₹ Cr.) 19.62

Cumulative No. of loans disbursed 2,23,641

Cumulative loan disbursed (₹ Cr.) 284.42

Net Profit (₹ Cr.) 0.468

Net worth (₹ Cr.) 2.765

SECTORS %

Agriculture 80

Petty Trades 14

Service 6

2014-15

2015-16

2016-17

0 20 40 60 80

PAT LOAN DISBURSEMENT IN CRORES

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EFFICIENCY ANALYSIS The borrowers are prompt in their

repayments as reflected in the high 99.77%

recovery rate. The Operational Efficiency(OER)

of 6.80 is a positive indication for a micro loan

institution, which used to be generally at a

high proposition. There was a healthy

reduction in total expense to average

portfolio from last financial year and stands at

10.

FUNDING PARTNERSHIPS The two public sector banks State Bank of

India and Indian Overseas Bank have been the

major funding partners, which reflects the

credit worthiness gained by PAT over the

years . NABKISAN Finance Ltd., a subsidiary of

NABARD Bank has extended lending to PAT

for agriculture allied purposes based on its

formidable field presence in the rural parts of

the state. Ahmedabad based NBFC Ananya

Finance for Inclusive Growth Pvt. Ltd and

Bangalore based Micrograam Social

Development Foundation had also continued

their financial lending to PAT.

Funding Institution (Bank/Lending

Organization)

Fund

Outstanding

Ananya Finance for Inclusive Growth

Pvt. Ltd

2,62,50,000

Indian Overseas Bank 6,77,87,000

State Bank Of India 9,64,38,000

NABKISAN Finance Limited 49,41,000

Micrograam Social Development

Foundation

7,84,000

Sum of Outstanding from Banks/FI 19,62,00,000

BC OUTSTANDING 38,65,57,975

Efficiency and productivity As on 31

March

2017 Operating Expenses / average gross loan

portfolio

6.80%

Cost per borrower (₹) 1477.6

Average loan size per borrower (₹) 17826

Number of borrowers / Field staff 454

Number of Borrowers/ Total staff 280

Portfolio per loan officer 8084984

Borrower per branch 1789

Portfolio per branch 31890771

Total cost to total income 91%

Total Income to average portfolio 11%

Financial expense to average Portfolio 8.60%

Total expense to average portfolio 10%

“She considers a field and buys it - Proverbs”

Vijaya – the labourer-turned-

landowner

The golden rays of the early sun streaming

down their shoulders, Vijaya and her

husband are busy in their Jasmine garden

in the Thanjavur district of Tamil Nadu,

hand plucking the buds of the fragrant

jasmine flower that would adorn some

beautiful hair the next day. Just two years

back, this hard working 35-year-old

mother of three was an unskilled labourer

in the lush green patch of land in the

fertile Kolladam river basin that she owns

today. For 11 long years she had sweated

and toiled under the scorching sun to earn

the daily wages that would sustain their

family, always longing for that day when

she, hand in hand with her husband

Selvam, would toil in their own land.

Vijaya’s journey from wage earner to job

creator started nine years back when PAT

started providing affordable loans to SHG

members through its Tiruppanandhal

branch. With her first loan of ₹ 5000, she

started her own dairy business by

purchasing a milch cow. Using part of the

profit from the sale of milk, she added

more animals to her small farm, until the

family owned four animals four years back.

A few days later, an opportunity arose to

help fulfil her long cherished dream. A

portion of the land she had worked in was

available for purchase. She immediately

sold three of her milch animals, took

another loan from PAT and paid the three

lakhs towards purchasing the 23 cents of

land.

She may not be aware that the Persian

word jasmine means ‘a gift from God’, but

this is what a micro loan from PAT has

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FINANCIAL STATEMENTS The extract of the Auditor’s report reflects the

robust financial stature of the organization.

Facsimile of the auditor’s report in full, which

includes the schedules are given as annexure

at the end of the report.

The first two tables pertain to the

microfinance operations of PAT, the third and

fourth are of its other programs.

INCOME AND EXPENDITURE (MICROCREDIT)

Income (₹) MF

Operating Income

Interest on Loans 2,15,61,035

Other Operating Income 2,80,13,697

Other Income

Non-Operating Income 26,89,476

Total Income (a) 5,22,64,208

Expenditure

Financial Cost 1,62,10,558

Administrative Cost 1,52,65,798

Employee Benefit Cost 1,45,33,863

Depreciation 15,72,801

Total Expenditure(b) 4,75,83,020

Income - Expenditure (a)-(b) 46,81,188

BALANCE SHEET (MICROCREDIT)

SOURCES OF FUNDS (₹) MF

Capital Fund

General Fund 59,11,242

Capital Fund 2,17,37,658

Loan Funds

Secured Loans 19,75,87,952 35,475 Unsecured Loans 1,01,81,212

Current Liabilities 37,40,975

Total Sources of Funds 23,91,59,041

APPLICATION OF FUNDS (₹)

Fixed Assets 66,07,110

Current Assets

Loans & Advances 18,75,44,405

Receivables 5,65,33

Cash in Hand 1,53,742

Balance with Banks 3,12,119

Other Current Assets 4,39,76,331

Total Application of Funds 23,91,59,041

“Out of her earnings, she plants a vineyard - Proverbs”

Rajeswari – the planter

Thirty three year old homemaker and

farmer, Rajeswari, proudly guides the

visitors to the prized banana farm that she

and her husband Shankar own in

Kurangaduthurai in Thanjavur District. All

fenced up with thorny bamboo branches,

the one-acre farm, which is a little way off

from their home in the village, is the

means of livelihood for them and their

children, 11 year old Mithun and 8 year

old Anushka. Beyond the electric pump set

at the gate, there are rows upon rows of

plants, their stems slightly bent under the

weight of the dark green bunches of the

bananas that they bear.

With 14 others, Rajeswari too is a member

of the TN SHG group managed by the

Aduthurai branch of PAT. A client of PAT,

she had began with the first loan of ₹ 5000

7 years ago but has progressed to the

current cycle, availing a loan of ₹20,000

due to her credit worthiness of having

promptly repaid all her previous loans.

Over the years, through the cycles of loans

made available to her, Rajeswari freed

herself from the clutches of informal

lenders and by making investments on

agriculture, increased the productivity of

her farm. The comfortable instalments and

the affordable interest having given her

aspired financial independence she is now

able to comfortably meet the life cycle

needs of her family.

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INCOME AND EXPENDITURE (GENERAL)

Income (₹) GEN

Voluntary Contributions Received

Children Development Programme 4,95,261.00

Educational Empowerment Programme 11,58,299.00

Job Oriented Training Programmes

- Computer Training 3,96,179.00

- Tailoring 2,22,230.00

Welfare Programme 9,84,800.00

Other Income

Bank Interest 32,267.00

Miscellaneous Income 2,41,453.00

Total Income (a) 23,95,590.00

Application (₹)

Children Development Programme 10,00,548

Educational Empowerment Programme 2,06,887

Job Oriented Training Programmes

- Computer Training 3,88,796

- Tailoring 2,23,025

Welfare Programs 70,000

Health Care Programme 1,15,400

Miscellaneous Expenses 16,910

Bank Charges 231

Depreciation 96,250

Total Application (b) 21,18,047

Income - Expenditure (a)-(b) 2,77,543.17

BALANCE SHEET (GENERAL)

SOURCES OF FUNDS (₹) GEN

Capital Fund

Corpus Find 55,00,919

Capital Fund 56,36,981

Current Liabilities

MCP Advance 69,880

Staff Security Savings 11,35,352

Total Sources of Funds 1,23,43,132

DEVELOPMENT PROGRAMS

CHILD DEVELOPMENT The Census 2011 reveals that 37% of Indian

population consist of children and 25% of

them do not go to school and 9.9 crore

children are school dropouts. India has more

than 45 lakh under 15 wives who are mothers.

We live in a country where majority of the

children never really know what childhood is

like – they are neglected, hungry, poor,

malnourished, illiterate or they work are

labourers in the farms, factories, homes or

other places of work or , abused, abducted,

trafficked and sold as a merchandise.

PAT’s five Child Development Program (CDP)

centres at MGR Nagar, Ramamurthy Nagar,

Bell’s ground, Kemps Town and Kajapettai are

a response to child rights issues in the slums

in Trichy town. The centres attempt to

APPLICATION OF FUNDS (₹) Fixed Assets 1,06,79,897 Current Assets Cash in Hand 15,025 Balance with Banks 98,125 Other Current Assets 3,50,500 Loans & Advances Advance to MCP (Staff Security

Savings)

11,33,000 Staff Loan - Loan from Staff Security Savings 66,585

Total Application of Funds 23,88,453

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provide opportunities for refined behaviour,

social interaction, cultural integration and

mental development for the child. For the

past 18 years, PAT has taken in children from

these areas and prepared them for the school.

EDUCATION EMPOWERMENT

Coaching Centres: PAT has twenty

coaching centres with intake of 30 students

each. The organizations’ commitment to the

holistic development of the community and

the individual has necessitated various

programs. The leadership, well accustomed to

the rural situations of the state observed the

startling number of school dropouts,

especially girls, just because they did not have

the proficiency in languages and Maths.

Intervention in this issue was made through

starting coaching centres in a few places in

1999. Having seen its efficacy, more

Educational Empowerment Centres were

added to the current 30.

A total of 600 students at the level of

secondary or higher secondary classes gather

at these centres, for two hours a day,

between 4-6 in the evening. Each centre has

an intake of 30 students and a qualified guide

supervises the daily revision of their lessons,

besides occasional tests to help them locate

the areas where they need improvement.

Practical Skills Dev elopement: Besides the daily coaching, the students get

the opportunity for sharpening their personal,

interpersonal and public relational skills

through programs such as writing, recitation,

arts and fine arts and public speaking. The

annual day celebration at the centre is a day

of festivity for the students to demonstrate

their skills and receive awards.

Coaching Centers (with 30 children each)

Adhichanur, Suthamalli, Nayaganaipriyal,

Kodali, Porpathinthanallur, Cholamadevi,

Kodalikaruppur, T.K.P Natham, Edankanni,

Chinthamani, Thathampettai, Sripuranthan,

Govindaputhur, Vikramangalam, Kadambur,

Periathirukonam, Karaikurichi,

Venmankondan,Nagamangalam, Sathambadi

“Train up a child in the way he should go, And when he is old he will not depart from

it” – Proverbs

Irudhayamary’s Triumph

It was in the middle of 2000 that

Irudhayamary was enrolled at the …………….

CDP centre run by PAT. Her father had died

and her mother who worked as a

housemaid for their livelihood, wanting to

have a good future for their daughter

decided to enter her at the PAT day care

centre. She was unkempt and undisciplined

typical of very many children from the

shantytowns of Trichy, but soon everything

changed and she found her learning

interesting, became organized and by the

time she joined the regular school, she had

acquired the motivation and discipline to

become a good student.

Duly supported by her mother, she is now a

final year graduate student in Zoology.

Admission to the college had not been

difficult since she had secured 80% marks in

the 10th grade exam and 74% in the Higher

Secondary examinations. She has also

undergone other vocational trainings like

tailoring, accounting in Tally and has a

Diploma in computer applications.

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EMPLOYABILITY SKILL

TRAINING

COMPUTER TRAINING

In order to create a IT savvy generation from

rural parts of the country to compete and

excel in the booming IT-enabled job sector,

PAT had started Computer Training centres in

Thirupanandal, Thanjavur District in the year

2008 and T.Palur, Ariyalur District in 2013.

Both the centres cater to the needs of the

youngsters from the surrounding areas in an

affordable way. The service-minded

professionals associated with the centre

provide hands-on training to the enrolled

members in various computer applications,

software packages and typing. In the year

2016-17 around 206 personnel were

benefited from the training , the training

courses duration range from 45 Days to 1

year.

TAILORING CENTRES

Observing that many homes had adolescent

school drop outs idling in their homes PAT

decided to open vocational training programs.

A first step towards these was opening the

Vikramangalam tailoring training centre which

was later relocated to Aduthurai. Having seen

he success of the program another centre was

started at Thiruppaandhal, which also became

COURSES OFFERED

COURSE DURATION

TRAINEES

JCP 1 & 1/2 MONTHS 3

DCA 3 MONTHS 115

C,C++ 3 MONTHS 2

TALLY 3 MONTHS 26

PGDCA 1 YEAR 53

INTERNET 1 & 1/2 MONTHS 6

ENGLISH TYPE 1 MONTH 2

TAMIL TYPE 1 MONTH 1

Total Students 208

“ …those who diligently seek me will find me (wisdom)” - proverbs

Surya makes it to the college

It was an off-school day and Surya, a college

student, from Ariyalur district of Tamil Nadu

was helping his parents in the 1 acre fertile

paddy field that the family owned in the Kotiyal

village near the Koladam river. They were

working together; spraying nutrients to the

foot high rice saplings that would be bent with

bunches of golden rice in two months time.

Surya had a problem as a school student – try

as he may, he could not make his grades in

Tamil, English and Math. The 35% that he could

achieve was the bare minimum needed for a

pass and higher education seemed a distant

dream.

PAT, in the meanwhile, had an Education

Empowerment Program running in the village

where a tutor was available to coach students

weak in various subjects during the after school

hours in the evening. The decision by Surya’s

parents to enrol him in the program was a

turning point in his academic life. His academic

performance started changing for the better,

so much so that when the result of the 10th

grade was declared, Surya had scored 91%

marks.

Now pursuing his higher education Surya looks

back at his school days and says, “I was so weak

in my studies that my parents feared for my

academic future. But the approach and method

of coaching at the centre inspired and

motivated me to excel. My capacity for

understanding concepts and meanings

increased and I ended up with a high first class

- good enough to make it to the Higher

Secondary education”.

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very popular. Currently around 200 students

are trained in these centres.

Besides being able to save money by making

dresses for themselves and their family

members quite a number of the trained girls

take up tailoring as a profession to make their

own living.

HEALTHCARE PROGRAM PAT in collaboration with the Lions Club T-

Palur/Kumbakonam, Aravind Eye Hospital

Madurai and District Blindness Education

Society of Thanjavur conducted eye camps at

Neelathanallur, Kumbakonam Taluk and

Anaikarai, Thiruvidaimaruthur Taluk of

Thanjavur District.

The villagers were mobilized by PAT staff to

the camp by disbursing notices, displaying

wall posters and public announcement, and

the staff were also involved in making

necessary arrangements for the smooth

conduct of the camp.

A total number of 600 villagers, 300 in each

camp were provided healthcare services.

Those, who are in the dire requirement of

operation to prevent blindness were taken to

hospital at Madurai for surgery. To and fro

travel to Madurai, food and accommodation

were arranged at free of cost.

ECOFRIENDLY INITIATIVES Continuing its drive for environment friendly

farming practices, PAT has been running

demonstration and production of vermi-

compost near Trichy. Vermicompost is an

excellent substitute to chemical fertilizers for

enriching the soil with nitrogen, which is

essential for plant growth. The additional

advantage is that bio-degradable organic

waste that poses hazard to both hygiene and

climate is very usefully recycled . PAT

continues its efforts to educate farmers to

turn to vermicomposting so that they can

produce valuable manure from the organic

refuse from their own premises.

MARCHING ON ... Sweeping economic changes are currently

underway in India that will redefine the way

people save, invest, spend and provide for

their life cycle needs and they are looking for

answers and a sense of direction, travelling in

these unchartered waters. Standing for the

people and committed to social

‘She makes linen garments and sells them …” proverbs

Kalaiselvi’s image makeover

Joining the PAT run Tailoring centre at

Thirupanandal came handy to Kalaiselvi, a

widow struggling to provide food, clothing

and education for her three impoverished

children. When she received her certificate

three months later, she had acquired the

needed skills to both save money by

stitching her and children’s clothes as well

as earn additional income by making dress

for others. The unexpected added

achievement in her words was the, “build

up of my image in the society” – a

remarkable example of women

empowerment.

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transformation through its microfinance

activities, PAT has the responsibility to guide

its members to live confidently without

compromising on its profitability as a financial

institution – we shall take on this challenge.

In the meanwhile, I place this report before

you with gratefulness to the Lord of us all,

who guided us so far and shall also provide

the wisdom to plan strategically for future.

Thank You,

President.

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