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Sierra Leone 50 years of independence in West Africa With a population of 5.8 million, coastal Sierra Leone – a name that comes from the Portuguese for “Lion Mountainsâ€? – achieved independence from Great Britain in 1961. As a diamond and mineral rich country, it also suffered 11 years of civil war ending in 2002; Bangladeshi peacekeepers created such a good impression that many Sierra Leoneans know a little "ANGLAĂ–"2!#Ă–OPENEDĂ–ITSĂ–OFĂ™CESĂ–HEREĂ–INĂ– Ă–ANDĂ– by the end of 2011 it reached over 700,000 Sierra ,EONEANSĂ–WITHĂ–ACTIVITIESĂ–INĂ–MICROĂ™NANCE Ă–AGRICULTURE Ă– livestock, poultry, health and legal services. What started out in 1972 in a remote village of Bangladesh as a limited relief operation, turned into the largest development organisation in the world. Of major non-governmental organisations, BRAC is one of the few based in the global south. Today, BRAC is a development success story, spreading solutions born in Bangladesh to 10 other countries around the world – a global leader in creating opportunity for the world’s poor. Organising the poor using communities’ own human and material resources, it catalyzes lasting change, creating an ecosystem in which the poor have the chance to seize control of their own lives. We do this with a holistic development approach geared toward inclusion, using TOOLSĂ–LIKEĂ–MICROĂ™NANCE Ă–EDUCATION Ă–HEALTHCARE Ă–LEGALĂ– services, community empowerment and more. Our work now touches the lives of an estimated 126 million people, with staff and BRAC-trained entrepreneurs numbering in the hundreds of thousands – a global movement bringing change to 10 countries in Asia, Africa and the Caribbean, with operations in our 11th country, Philippines, being launched in 2012.

Sierra Leone


1 Annual Report 2011

Harnessing the past Enriching the future

Contents Mission, Vision and Values Chairperson’s Statement Agriculture 0LFURÛQDQFH    Health 'HYHORSPHQWSDUWQHUV BRAC across the world Harnessing the past Governance Management



01 02 04  12  18 20 22 23


Annual Report 2011 1

Vision, Mission and Values

Vision

Mission

Values

A world free from all forms of exploitation and discrimination where everyone has the opportunity to realise their potential.

Our mission is to empower people and communities in situations of poverty, illiteracy, disease and social injustice. Our interventions aim to achieve large scale, positive changes through economic and social programmes that enable men and women to realise their potential.

Innovation For forty years, BRAC has been an innovator in the creation of opportunities for the poor to lift themselves out of poverty. We value creativity in programme design and strive to display global leadership in groundbreaking development initiatives.

Integrity We value transparency and accountability in all our professional work, with clear policies and procedures, while displaying the utmost level of honesty in our financial dealings. We hold these to be the most essential elements of our work ethic.

Inclusiveness We are committed to engaging, supporting and recognising the value of all members of society, regardless of race, religion, gender, nationality, ethnicity, age, physical or mental ability, socioeconomic status and geography.

Effectiveness We value efficiency and excellence in all our work, constantly challenging ourselves to perform better, to meet and exceed programme targets, and to improve and deepen the impact of our interventions.


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Chairperson’s Statement

It gives me great pleasure to present the ANNUALÖREPORTÖANDÖTHEÖAUDITEDÖÙNANCIALÖ statements for the year ended 31 December 2011. Sierra Leone suffers from inequality in income distribution. While the country possesses substantial mineral, agricultural ANDÖÙSHERYÖRESOURCES ÖITSÖPHYSICALÖ and social infrastructure has yet to recover from the civil war, and social disorder continues to hamper economic development. Nearly half of the workingage population engages in subsistence agriculture. The fate of the economy depends upon the maintenance of peace within the country and the continued receipt of substantial aid from abroad, which is essential to offset the severe trade imbalance and to supplement government revenues. As of 2011, 76 per cent of the population survive on less than USD 2 per day. We provide microloans to disadvantaged women, helping them engage in income generating activities and in the long run to improve their economic condition. In 2011, we disbursed USD 4.3 million among 21,308 borrowers who are actively engaged in small enterprises and trades. Through our agriculture programme, small and marginal women farmers receive inputs and training in farming technology to improve their production. With funding from the Alliance for a Green Revolution


Annual Report 2011 3

in Africa and London Mining Company, farmers in nine villages are producing crops to address chronic food insecurity. In 2011, our community health promoters visited over half a million families in an effort to improve the health conditions of the rural communities with essential health care package. We have also signed a partnership agreement with World Food Programme to support their school and supplementary feeding programme. The purpose of the programme is to increase attendance in schools, and to reduce NUTRITIONÖDEÙCIENCYÖAMONGÖTHEÖCHILDRENÖ and vulnerable people such as HIV and TB patients. Our human rights and legal programme was introduced in Sierra Leone in 2010 with the aim to protect and promote human rights through legal empowerment, especially for the poor and marginalised people in the country. Through our legal literacy classes women are learning about claiming their rights, as well as reducing disputes in their community and amongst themselves with the aid of paralegals. So far we have reached over 200,000 people with our human rights services in over 1,000 villages. Looking ahead to 2012 BRAC will increase its range of health programmes in Sierra Leone to include a focus on the sixth Millennium Development Goal, which seeks to combat malaria, TB and non-communicable diseases. As a sub-

recipient of the Global Fund to Fight AIDS, Tuberculosis and Malaria, we will start working on disease reduction strategies in collaboration with the government of Sierra Leone and Catholic Relief Services covering three districts of the Western Area (Freetown), Kenema and Tonkolili. I would like to take this opportunity to commend our team in Sierra Leone who have worked with enduring commitment to make use of every opportunity that has come BRAC’s way. The quality of our performance in Sierra Leone is attributed to this remarkably competent team and their knowledge and skills. I extend my sincere thanks to the members of the governing body, whose leadership and foresight has steered the organisation to success. I thank the government and development partners in Sierra Leone for their continued support as we strive to create greater value in our services to contribute towards the progress and prosperity of Sierra Leone.


BRAC Programmes

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Agriculture and Food Security Operating in eight countries, BRAC’s agriculture programmes work with governments to ensure food security. We build systems of production, distribution and marketing of quality seeds at fair prices, conduct research to develop better VARIETIESÖANDÖPRACTICESÖFORÖTHEÖAGRICULTURALÖSECTOR ÖOFFERÖCREDITÖSUPPORTÖTOÖPOORÖFARMERS ÖANDÖPROMOTEÖTHEÖUSEÖOFÖEFÙCIENTÖ farming techniques and proven technologies. Using environmentally sustainable practices, we are helping these COUNTRIESÖBECOMEÖSELF SUFÙCIENTÖINÖFOODÖPRODUCTIONÖ!GRICULTURALÖPROGRAMMESÖAREÖCURRENTLYÖOPERATINGÖINÖ"ANGLADESH Ö Uganda, Tanzania, Sierra Leone, Liberia, South Sudan and Haiti.

Assisting farmers in Sierra Leone BRAC launched its agriculture programme in Sierra Leone in 2008. Agriculture is a SIGNIÙCANTÖPARTÖOFÖTHEÖCOUNTRYlSÖECONOMY Ö accounting for 58 per cent of the national Gross Domestic Product (GDP). Nearly two-thirds of the population of Sierra Leone are involved in subsistence agriculture, but while 74 per cent of total land area is potentially cultivable only 34 per cent of fertile land is used, leaving ample opportunity for the sector to be developed. BRAC’s agriculture programme addresses the problem of poor crop productivity in Sierra Leone with the aim of improving the EFÙCIENCYÖANDÖMANAGEMENTÖOFÖSMALLÖTOÖ medium farm enterprises.

Kadiatu Bangura, a model farmer in Port Loko.

Growth in 2011 In 2011, BRAC added two new programmes to its agriculture activities with funding from the Alliance for a Green Revolution in Africa (AGRA) and London Mining Company. The AGRA-funded project “Improving livelihoods of smallholder farmers through validation and dissemination of improved agriculture technologies and distribution of improved seedsâ€? makes use of BRAC’s agriculture programme infrastructure. To achieve its objectives, programme activities include the production of CERTIĂ™EDĂ–SEEDĂ–ATĂ–THEĂ–"2!#Ă–SEEDĂ–FARM Ă–THEĂ– development of 160 demonstration plots, ORGANISINGĂ–Ă™ELDĂ–DAYS Ă–ANDĂ–THEĂ–DISTRIBUTIONĂ– of seed and other agro-inputs by CAPs. The London Mining Company project provides funding to improve the livelihoods of farmers in nine villages

(Katic, Rogbaneh, Konta, Gbomblimba, Chendata, Magbenthe, Maforki, Magberie and Thofayim). Participants are resettled farmers who have been affected by London Mining Company activities. The programme consists of two phases, enabling farmers to produce crops throughout the year: phase one focuses on inputs and training for upland cultivation in the rainy season, while phase two focuses on training for farmers on key techniques in lowland and vegetable cultivation. In 2011, BRAC Sierra Leone’s agriculture programme reached a population of 14,418, and 189 CAPs and 2,403 model farmers received training. The programme produced eight metric tonnes of seed, and distributed 13 metric tonnes of seeds and 15 metric tonnes of fertiliser. A total of 80 demonstration plots and 285 kitchen gardens were established.


Annual Report 2011 5

Agriculture and Food Security

Our approach: Value chain interventions



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Farmers produce high-yield crops





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  s d ds as an see e m ce e W odu et th pr ark m

Indeed [BRAC] has made wide and substantial impact, especially at a time when our emphasis is to reduce poverty. There is a need for us to empower the poor and that has been the area of your activities. You [also go] along with the areas of our priority [in agriculture and health]. The poverty level is very high and your commitment and efforts ensure that together we can reduce poverty as we move along. Ernest Bai Koroma

President Sierra Leone

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The programme is designed to increase agricultural output, farm income and rural employment. BRAC established 63 acres for seed testing and a multiplication farm at two sites near Lunsar (Port Loko District), comprised of 37 acres at Kerefay and 26 acres at Magbafth, in June 2010. At the grassroots level, the agriculture programme operates through experienced self-employed community agriculture promoters (CAPs). CAPs are female farmers selected from BRAC’s MICROÙNANCEÖGROUPSÖ4HEYÖRECEIVEÖ TRAININGÖONÖFARMINGÖTECHNIQUESÖFORÖSPECIÙCÖ crop varieties with techniques covering the entire life cycle of the crop. Upon completion of their training, each CAP IDENTIÙESÖÖSMALLHOLDERÖFARMERSÖLIVINGÖ in the surrounding communities, of which in turn 40 become model farmers who specialise in crop production and promote good farming practices to others in their own communities. CAPs assist farmers with technical issues, such as the choice of varieties to grow, usage of improved seeds, crop spacing, rotation, intercropping, weeding, planting,

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fertilisation, pest control, post-harvest management, and the utilisation of byproducts. CAPs also sell improved seeds and other agricultural inputs to farmers at a SMALLÖPROÙT At the branch level, the agriculture programme is coordinated by dedicated programme assistants (PAs). Each PA receives extensive training on better farming practices, high yield seed varieties and improved technologies from BRAC. The PA’s role is to train and supervise the CAPs, who constitute the core of the programme. At any point in time, PAs can ask for assistance from their assigned area coordinator.


6 Annual Report 2011

Agriculture and Food Security

Fatu working in her vegetable garden, which she turned into a successful business venture.

FATU KANGO: Changing lives through farming

“I feel proud to work with BRAC as a leader, and of course, I’m very thankful to them for giving me the opportunity to serve my community. I want to expand my land, grow more vegetables, and I know BRAC will provide me with the support I need.” Fatu Kango lives in the village of Konta in the Port Loko District in northern Sierra Leone. Before joining BRAC, she was earning an income of SLL 10,00012,000 per month (USD 2-3), which was not enough to sustain her family. In her extended family of 18, only three people were earning a living. The income the family generated only allowed them to live at a basic subsistence level. Fatu was deeply unhappy because she was unable to pay for her children’s education.

Fatu became interested in working for BRAC after she mobilised the women in her community and participated in a meeting hosted by BRAC’s agriculture programme. After discussions with the community leader, she received land to start her vegetable production. Fatu participated in the various training programmes on vegetable production offered by BRAC, and soon after she started gardening with the assistance of BRAC staff under the London Mining project. She adopted improved technologies in producing vegetables, such as line sowing, applying the correct dosage of fertiliser, irrigating, and timely weeding. On her vegetable farm, she produces okra, cucumber, krin-krin, green amaranth and hot pepper. As of now, Fatu has sold okra and cucumber from her garden, and the other vegetables will also be sold once they are ready. From this business venture, she is earning a monthly income of SLL 40,00050,000 (USD 9-11), almost three times the amount she was making before joining the BRAC programme. Now she is able to

send her children to school and can also spend more on healthcare and food for her family. As a community leader, Fatu encouraged others to also build a better life for themselves by establishing their own vegetable gardens. The 23 women in her community who took her advice now also earn an increased income from their gardens.


Annual Report 2011 7

BRAC Programmes

Health Working in eight countries, BRAC’s health programmes promote sustainable and accessible healthcare for the poor in collaboration with both the state and private healthcare sectors. Working in their own slums and villages, BRAC’s ‘army’ of self-employed community health promoters helps whole communities stay healthy, with a groundbreaking door-to-door approach. These workers create a cost-effective bridge between underserved poor communities and formal healthcare systems. BRAC also organises health meetings to encourage an exchange of knowledge, thus empowering people to take care of themselves, their families and neighbours.

Improving essential health care Sierra Leone, with a population of over six million, only has 2,435 healthcare professionals. There are only 134 physicians covering the entire country. The healthcare system is particularly poor at the community level, which makes it impossible for many people to have access to the care they need, especially in rural areas that lack public transportation. Taking these factors into consideration, BRAC Sierra Leone started implementing the essential healthcare programme in October 2008. The objective was to improve the general health status of poor women and their families by providing access to affordable primary healthcare services. Following its expansion in 2010, the health programme is now being implemented in 20 branches, covering three districts. The programme focuses on education on health, nutrition, family planning, immunisation, safe water and sanitation,

hygiene, tuberculosis, malaria, HIV/AIDS, pregnancy-related care, prevention of and care for acute respiratory infections and pneumonia, and basic curative care. In order to address the lack of diagnostic facilities in the country, BRAC opened ITSÖÙRSTÖHEALTHÖANDÖDIAGNOSTICÖCENTREÖINÖ Freetown in 2010. To ensure comprehensive coverage of its basic healthcare service provision, BRAC recruited and trained women from BRAC 3IERRAÖ,EONElSÖMICROÙNANCEÖGROUPSÖTOÖ become community health promoters (CHPs). The CHPs are the backbone of the health programme, bringing basic health services to the doorsteps of more than 780,000 Sierra Leoneans. BRAC IDENTIÙESÖANDÖTRAINSÖFEMALEÖMEMBERSÖ FROMÖITSÖMICROÙNANCEÖGROUPSÖTOÖBECOMEÖ community health promoters, and employs female programme assistants (PAs) to supervise them. The women selected for the CHP training are recommended by THEIRÖMICROÙNANCEÖOFÙCERSÖANDÖOPERATEÖ

micro-enterprises that allow them time to conduct daily household visits. They are the central point of contact for health concerns in their communities. Since the start of our programme and as of December 2011, we have trained 660 Sierra Leoneans as CHPs. Each CHP is responsible for monthly visits to 150 to 200 households in her designated area -– all within one kilometre of her home. CHPs earn a small income from selling healthcare products such as sanitary napkins, hygienic soap and iodised salt. Apart from their regular activities, CHPs participate in various national campaigns, for example campaigns on immunisation, polio vaccine administration and the promotion of malaria awareness messages along with the distribution of long lasting, insecticide-treated bed nets. Their participation facilitates and strengthens BRAC’s partnership and collaboration with the government for further implementation of the national tuberculosis and malaria programmes.

A BRAC staff speaking at a health forum in Port Loko.


8 Annual Report 2011

Health

A health programme participant in Port Loko.

Growth in 2011 In the programme’s new operational areas (Bo, Kenema and Kono districts), 260 CHPs received training in 2011, bringing the total number of CHPs to 660. This year our CHPs, with the help of the programme assistants, referred 82,061 patients to the nearby government health facilities. To ensure that the referred patients received appropriate treatment, referral slips were introduced. The slips were printed ahead of time and are now being used on a pilot basis in eight government health facilities or peripheral health units. During household rounds, the CHPs visited a total of 566,924 eligible couples to encourage family planning methods where there was a demand, and provided counselling to 26,945 patients. During the implementation of the health programme, CHPs often encountered the limitations of the health system, such as the lack of quality diagnostic services. BRAC addressed this issue BYÖESTABLISHINGÖITSÖÙRSTÖHEALTHÖANDÖ diagnostic centre in Goderich, Freetown in late 2010. The facility is located in the Western Area Rural district, covering a population of more than 50,000 in

Lumley and Goderich, where no other diagnostic services are available. The lab provides affordable diagnostic services, especially for marginalised and vulnerable groups. It also helps reduce transmission of infections and supports appropriate treatment of diseases through early case detection. In line with the free healthcare initiative, free services are provided for pregnant and breastfeeding mothers and CHILDRENÖUNDERÖÙVEÖ In 2012, BRAC Sierra Leone will increase its focus on the sixth Millennium Development Goal (which seeks to combat HIV/AIDS, malaria and other diseases) with a series of initiatives and partnerships. BRAC will start working on malaria reduction strategies as a sub-recipient of the Global Fund to Fight AIDS, Tuberculosis and Malaria in

collaboration with the principal recipients, the Government of Sierra Leone and Catholic Relief Services. The programme will cover three districts of Western Area (Freetown), Kenema and Tonkolili. With regards to HIV/AIDS, the collaboration with the government to supply HIV/AIDS kits and reagents and the training of BRAC diagnostic laboratory staff on HIV/AIDS counselling, will be ready for operation in 2012.


Annual Report 2011 9

Health

Marie is grateful for the oppurtnity to serve her community in meeting their health needs.

MARIE Y. KAMARA: Healing the community

“I thank Marie, our local CHP, and BRAC for bringing about the telemedicine programme which has helped me and many others.”

Marie Y. Kamara is one of BRAC’s community health promoters and works in Goderich, Freetown. Every morning, she visits the community and asks residents whether they have any health-related questions, which she records in a book. One day in July 2011, she visited the home of a woman called Mariewa at the request of Mariewa’s grandchild. The old woman was severely ill, suffering from dim vision, sacral pain, abdominal pain, and joint pain all over her body. From one of Marie’s prior visits, Mariewa was aware of the BRAC telemedicine programme, a service for those who do not have the necessary funds to go to the hospital. After examining the patient, Marie decided it was important for a doctor to be consulted. She promptly called a doctor from the BRAC laboratory diagnostic centre to explain Mariewa’s symptoms and the doctor, after listening to her, prescribed the necessary medicine. After completing the intake of her prescribed medication, Mariewa’s health greatly improved. In time she was able to perform her daily chores again and

fully was restored her health. BRAC’s telemedicine facility, which uses mobile PHONESÖTOÖINCREASEÖACCESSÖTOÖQUALIÙEDÖ HEALTHÖCONSULTATION ÖHASÖMADEÖAÖSIGNIÙCANTÖ impact in the rural communities where the nearest health practitioner may live miles AWAY ÖANDÖTHUSÖCANÖBEÖDIFÙCULTÖTOÖCONSULTÖ in person. The telemedicine initiative is similar to the m-Health innovation launched in Bangladesh in 2011, where BRAC is increasing its provision of access to basic healthcare services.


10 Annual Report 2011

BRAC Programmes

Microfinance )NNOVATIVE ÖCLIENT FOCUSEDÖANDÖSELF SUSTAINABLE Ö"2!#ÖMICROÙNANCEÖPROGRAMMEÖISÖAÖCRITICALÖCOMPONENTÖOFÖOURÖHOLISTICÖ approach to support livelihoods. Over the course of the last four decades, we have grown to become one of the WORLDlSÖLARGESTÖPROVIDERSÖOFÖÙNANCIALÖSERVICESÖTOÖTHEÖPOOR ÖPROVIDINGÖTOOLSÖWHICHÖMILLIONSÖCANÖUSEÖFORÖTHEÖBETTERMENTÖOFÖ their lives.

Building economic and social capital "2!#Ö-ICROÙNANCEÖ3, Ö,IMITEDÖDISBURSEDÖ ITSÖÙRSTÖLOANSÖTHROUGHÖITSÖMICROÙNANCEÖ programme in Sierra Leone in June  ÖANDÖITSÖÙRSTÖLOANSÖTHROUGHÖITSÖSMALLÖ enterprise programme in January 2010. The aim of both programmes is to provide ÙNANCIALÖSERVICESÖFORÖPEOPLEÖINVOLVEDÖINÖ small trading and small and medium sized enterprises who have no access to the formal banking system. "2!#ÖDELIVERSÖMICROÙNANCEÖANDÖOTHERÖ services by organising groups of poor women who unite to improve their socioeconomic position. At the core of BRAC’s MICROÙNANCEÖPROGRAMMEÖAREÖMICRO LOANSÖ which range from USD 100-300 and are SPECIÙCALLYÖDESIGNEDÖFORÖPOORÖWOMEN Ö assisting them to undertake income generating activities. The services are readily accessible as BRAC engages the women directly in their villages, homes and places of work. As a result, the MICROÙNANCEÖPARTICIPANTSÖDOÖNOTÖINCURÖANYÖ travel costs and minimise time spent away

A microfinance group meeting in Funkia neighbourhood, Freetown.

from their homes and businesses. BRAC focuses on both the economic and social needs of its target borrowers in Sierra Leone, recognising and understanding that groups of borrowers require multiple interventions to move out OFÖPOVERTYÖ-ICROÙNANCEÖPAVESÖTHEÖWAYÖFORÖ BRAC to harness the collective power of the group as both an economic and social unit, offering support and security for the loans of its borrowers..

Growth in 2011 !SÖOFÖ Ö"2!#lSÖMICROÙNANCEÖ programme is operating 43 branch OFÙCES ÖCOVERINGÖAÖPOPULATIONÖOFÖ Ö Sierra Leoneans. It has organised 1,676 MICROÙNANCEÖGROUPSÖWITHÖ ÖGROUPÖ members, of which 20,310 are our borrowers. In total, BRAC has disbursed loans amounting to USD 3,286,085 in 2011 Sierra Leone. The BRAC small enterprise programme OPERATESÖÖBRANCHÖOFÙCESÖINÖ3IERRAÖ Leone and covers 4,818 people. In 1,676 MICROÙNANCEÖGROUPS ÖTHEÖPROGRAMMEÖHASÖ 998 borrowers, with total loans disbursed so far amounting to USD 1,272,193.


Annual Report 2011 11

Microfinance

Our approach: Step-by-step economic development

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BRAC’s micro-loans are exclusively intended for women participating in the group process. Borrowers range in age from 18 to 60 and have little or no education. BRAC provides loans to women who are not served by other MICROÙNANCEÖINSTITUTIONS ÖGIVINGÖTHEMÖTHEÖ opportunity to operate businesses that provide products or services to their local communities. Borrowers do not require collateral and reimburse their loans on a weekly basis against competitive interest rates, and the government can achieve its goal of developing a well-founded and FUNCTIONINGÖMICROÙNANCEÖSECTORÖ

"2!#lSÖMICROÙNANCEÖBRANCHÖOFÙCESÖ conduct area surveys and consult with community leaders and local elders to select 25-40 members for each group. The group is then sub-divided into SMALLERÖGROUPSÖOFÖÙVE ÖEACHÖWITHÖTHEIRÖOWNÖ elected leader. The members of the small groups take responsibility to solve any peer repayment problems. New borrower groups meet four times prior to loan disbursement. After these initial set-up meetings, they meet weekly to make their loan repayments and to discuss the credit decisions with their dedicated BRAC credit OFÙCERÖ

Community partnerships and institutionbuilding are essential for poor people if they are to change their economic, social and political conditions. We deliver our micro-loans, along with other services, through organising groups of women into village organisations (VO) that come together to improve their socio-economic position.

BRAC provides training and technical assistance to its members and others in the community, enabling them to earn more income from existing activities and to start new income generating activities.

Small enterprise programme BRAC offers small enterprise loans to entrepreneurs who are seeking to expand their businesses. The loans enable these business owners to create new employment opportunities and provide new services. The entrepreneurs would otherwise only have limited access to THEÖFORMALÖÙNANCIALÖSYSTEM ÖTOOÖLARGEÖTOÖ QUALIFYÖFORÖMICROLOANSÖBUTÖWITHÖINSUFÙCIENTÖ collateral for commercial banks. The small enterprise loans range from USD 1,0003,000, and is offered to an individual rather than to a group. It is available for both male and female entrepreneurs and repayments are made on a monthly basis. Some members of the micro-loan programme become eligible for a small enterprise loan as their businesses grow and expand and their investment needs change.


12 Annual Report 2011

Microfinance

Alpha is now operating a successful timber depot from the loan he took out from BRAC.

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“My life was turned upside down when our house was burnt down, leaving us homeless, with nowhere to go. I feared that I wouldn’t be able to take care of my family and this weighed heavy on my chest. BRAC not only SUPPORTEDĂ–MEĂ–Ă™NANCIALLY Ă–BUTĂ– gave me a helping hand, and shared concern for both my family and I. I am thankful to BRAC and look forward to a new life ahead.â€?

Among the victims of Sierra Leone’s civil war is Alpha Koroma, who is married with six children, and the sole provider for his immediate and extended family. Twenty years ago, Alpha started a business in the village of Gboworbu, located in southern Sierra Leone. His business consisted of illegal fuel trading which at the time was a common practice in the region. During the rebel incursion, Alpha was forced to leave this business when his home was burnt down, leaving his family homeless. His family had to leave their place of origin behind, in pursuit of a new life in the capital Freetown. After settling in to Freetown, Alpha started a small timber depot business with his wife. They were faced with new obstacles, and eventually their business failed to MEETÖITSÖDAILYÖEXPENSESÖANDÖTHEÖÙNANCIALÖ needs at home. A year ago, a small ENTERPRISEÖPROGRAMMEÖCREDITÖOFÙCERÖVISITEDÖ the depot and inquired about his family and the business. BRAC offers small enterprise loans to entrepreneurs seeking to expand small businesses. The loans enable owners to create new employment opportunities and provide new services. In 2010, BRAC made efforts to expand its loan services in Sierra Leone by

meeting entrepreneurs such as Alpha, and offering them the opportunity to apply for a loan that will enable them to grow their business. Small entrepreneurs like Alpha have LIMITEDÖACCESSÖTOÖTHEÖFORMALÖÙNANCIALÖ system. Their businesses are too large for MICROLOANSÖBUTÖHAVEÖINSUFÙCIENTÖCOLLATERALÖ FORÖCOMMERCIALÖBANKSÖ'IVENÖHISÖÙNANCIALÖ circumstances, Alpha was reluctant to apply for a loan because he feared TAKINGÖONÖADDITIONALÖÙNANCIALÖOBLIGATIONSÖ Fortunately, the competitively low interest rates and reasonable repayment mode of BRAC loans helped Alpha in his decision making. On 14 June 2001, Alpha took OUTÖHISÖÙRSTÖLOANÖOFÖÙVEÖMILLIONÖLEONESÖ (approximately USD 1,150) in order to CONTINUEÖÙNANCINGÖHISÖTIMBERÖDEPOTÖANDÖ provide for his family. Alpha’s business is now generating ENOUGHÖÙNANCIALÖRETURNSÖTOÖCOVERÖTHEÖCOSTSÖ of running the depot, provide for basics needs for his family and relatives, and pay for the monthly loan installments on time. BRAC has given Alpha and his family the resources to begin a new chapter in their lives and make Freetown a place they can call home.


BRAC Programmes

Annual Report 2011 13

Poultry and Livestock Assisting the farmers in Sierra Leone BRAC launched its poultry and livestock programme in Sierra Leone in 2008. The programme addresses the problem of poor livestock productivity in the country ANDÖHASÖTHEÖAIMÖOFÖIMPROVINGÖTHEÖEFÙCIENCYÖ and management of small to medium farm enterprises. The programme is designed to decrease livestock mortality, raise farm income, and increase rural employment. Through this programme, BRAC has been working to increase the productivity of small scale agriculture, livestock and poultry activities in Sierra Leone by providing farmers with assistance to undertake income generating activities such as raising chickens, sheep, goats, pigs, cows, and cultivating small plots of land. BRAC’s methods include training and support on modern farming techniques. The programme operates through selfemployed community livestock and poultry promoters (CLPPs). CLPPs are experienced female poultry and livestock FARMERSÖSELECTEDÖFROMÖ"2!#ÖMICROÙNANCEÖ groups. They receive extensive training in animal husbandry, animal health issues, and vaccinations. They also learn about the production and conservation of fodder crops. With help from BRAC, CLPPs

can then offer vaccination services, sell veterinary medicine, and provide TECHNICALÖASSISTANCEÖTOÖOTHERÖMICROÙNANCEÖ group members and the wider farming community. CLPPs also select and assist model poultry farmers and model goat, sheep and pig rearers. Model rearers are farmers who want to increase their poultry and livestock production and are based at a strategic location in their community. Their business serves as an example to other rearers in the area. Model rearers BENEÙTÖFROMÖ"2!#ÖTRAININGÖINÖTHEIRÖÙELDÖ of interest (poultry, sheep, goats or pigs), receive technical support from CLPPs and PAs, and are provided with inputs such as feed, vaccines, deworming medication and construction materials for their smallscale businesses through loans, which they start paying back once they have started generating income from their model unit. At the branch level, BRAC’s poultry and livestock programme is coordinated by dedicated programme assistants (PAs). Each PA receives extensive training from BRAC on topics such as livestock and poultry rearing and diseases. The PA’s role is to train and supervise the CLPPs, who are at the core of the programme. At any

point in time, PAs can ask for assistance from their assigned area coordinator. It is through this pyramid of entrepreneurial extension agents and structured supervision system that BRAC can extend these services to thousands of people in Sierra Leone.

Growth in 2011 As of December 2011, the BRAC Sierra Leone poultry and livestock programme covered a population of 3,372, with 69 model poultry rearers, 144 model goat rearers, eight model sheep rearers, and 28 model pig rearers having received training. In total, the model rearers received 6,791 number of day-old chicks, 288 goats, 16 sheep, and 56 pigs for the commencement of their rearing enterprises. BRAC’s CLPPs have administered vaccinations to 140,305 poultry to date, and have treated 7,155 livestock and cattle. They have also distributed 27 metric tonnes of feed.

Poultry vaccinations in Kondatu section, Port Loko.


14 Annual Report 2011

Poultry and Livestock

Yatta, with the assets she received from BRAC, which helped her become financially stable.

YATTA SESAY: Raising baby goats

“I am very grateful to BRAC’s poultry and livestock development programme and feel very happy to work with them, being a part of their team. It is a chain effect, whereby you help one person, who in turn helps another – this way, you serve an entire community.�

Yatta Sesay, a 38-year old woman, was one of the recipients of BRAC’s poultry and livestock services. She heard about BRAC in December 2008 through her neighbour Maya, who was a member OFÖTHEÖ"2!#ÖMICROÙNANCEÖGROUPÖ9ATTAÖ TOOKÖTHEÖINITIATIVEÖTOÖÙNDÖOUTÖMOREÖABOUTÖ the services BRAC offered, which led to her interest in the poultry and livestock programme. She was introduced to the Area Livestock Coordinator, who then helped Yatta become a programme participant. BRAC staff shared extensive information on animal husbandry, how to take care of domestic animals and their economic importance with her. The local bird vaccination programme in the community intrigued Yatta especially. She was selected as a CLPP and received 12 days of intensive training. After the training, she started her own income generating vaccination service with the resources, for example vaccination kits, provided by BRAC.

Soon after, Yatta decided to broaden her capabilities and venture into livestock rearing as well. She received training on goat rearing and become a model goat rearer. She participated in regular monthly refresher trainings from which she continued to learn about diseases and the proper management of goats as well ASÖPOULTRYÖ7HENÖSHEÖÙRSTÖUNDERTOOKÖTHISÖ livestock endeavour, she had three goats – one adult goat and two kids. With the proper care for them and the exercise of disease management, the two kids grew to be healthy, mature goats. She sold one goat and the money she received helped pay for food for the family and her children’s school fees.


BRAC Programmes

Annual Report 2011 15

Human Rights and Legal Empowerment BRAC empowers the poor and marginalised by informing them of their legal and human rights. Our “barefoot lawyers,� the pioneering troop of the world’s largest NGO-led legal empowerment initiative, delivers legal services to the doorsteps of millions. By organising legal education classes, we give the poor the knowledge they need; by providing legal aid through our staff lawyers, we help them assert their rights. And by engaging local community leaders to foster more widespread awareness of legal issues, we help them transform themselves into agents of social change.

Resolving judicial issues To address the scarcity of lawyers in Sierra Leone, especially in the provincial areas, the human rights and legal empowerment (HRLE) programme provides free legal aid to marginalised communities. The programme uses BRAC’s infrastructure and builds on already mobilised communities to provide a free alternative dispute resolution service through a network of community-based paralegals who give advice and assistance in both civil and criminal matters. In remote locations where sustained service integration within the local community is not possible, BRAC operates a mobile legal clinic service, whereby paralegals travel to small communities and encourage the inhabitants to discuss their legal predicaments. Key issues which the HRLE programme tackles include cases of negligence of children and pregnant women, domestic violence, and rape; debt, land disputes, neighbour disputes, expenditure refund disagreements, larceny, and other problems at the community level. BRAC recruited 11 paralegals and provided one month of training on both formal and informal/traditional law for them. A baseline survey of 636 households was conducted to obtain data on attitude and practices of issues related to justice. To establish a presence in communities, BRAC conducts meetings which are attended by chiefdom traditional and tribal leaders, village headmen, councillors, governmental and non-governmental representatives, police, social elites, and female leaders to introduce BRAC and the human rights programme. During orientation sessions conducted in schools, paralegals discuss BRAC programme activities and services, including BRAC’s free legal assistance. Discussions are focused on sexual and gender-based violence, child and spousal protection,

teenage pregnancy, and the Child Rights Act, among others. In each chiefdom, 20 community oversight boards (COBs) and 20 community contact persons were selected with the consent of the respective paramount and section chiefs. COB members, who help in advising BRAC’s paralegals, are wellrespected elderly people with thorough knowledge about local customs and traditions of the people in their chiefdoms. Young people are selected as community contact persons who help the paralegals organise mobile legal clinics. COB members and community contact persons participated in two days of training on the basic legal systems of both formal and customary law as well as mediation. Mobile legal clinics are designed for paralegals to raise community awareness of the law and general human rights issues in Sierra Leone, and to provide concrete practical solutions to justicerelated concerns. During mobile legal clinic sessions, cases are recorded and reported. Some are mediated on the spot with the help of the community contact person while others are referred TOÖTHEÖNEARESTÖ"2!#ÖOFÙCEÖ$ISPUTESÖ which cannot be resolved by mediation are referred to local and magistrate courts, with paralegals monitoring case developments in conjunction with QUALIÙEDÖLEGALÖPRACTITIONERSÖ&OLLOW UPSÖAREÖ conducted for all ongoing cases, including cases which were mediated successfully and calls for both parties to adhere to the settlement reached.

Growth in 2011 Legal literacy classes for female community members on 10 topics related to the traditional and formal legal systems were initiated in November 2011. The classes enable the participating women to gain knowledge about claiming their rights, reducing disputes in their community with the aid of paralegals, and resolving small disputes amongst themselves. As of December 2011, the HRLE programme has reached 235,374 in covering 1,161 villages, and has received 642 cases.

BRAC’s work in human rights and legal aid services is one of the most impressive large scale legal aid programmes in the world today. A passion for justice is felt throughout the BRAC team. But most importantly, when travelling with BRAC, you realise that clients trust BRAC completely as a professional organisation: they share their stories readily without fear of reprisal, and while expecting that their grievances will finally be heard. Not only are they heard, but these cases are mediated and adjudicated. Stephanie Cohn Rupp Investments Omidyar Network


16 Annual Report 2011

Human Rights and Legal Empowerment

BRAC paralegals participating in a mobile legal clinic visit.

ROSAR VILLAGE: Fixing the borehole

“We are very happy and thankful to BRAC’s paralegals for their diligence and effort in helping our village by arranging for our borehole to BEĂ–Ă™XEDn

During a mobile legal clinic visit to the village of Rossar in northern Sierra Leone, BRAC paralegals received reports from villagers that their borehole, which had been constructed by Oxfam in 2002, was no longer in working condition. Village residents were instead fetching water from nearby streams, ponds and rivers – a laborious and time-consuming task. BRAC’s paralegals took prompt action by writing an advocacy letter to the development initiative programme’s (DIP) Port Loko branch on behalf of the people of Rossar. The letter included a request that the borehole be repaired. In response, the manager of DIP’s Port Loko branch called BRAC’s paralegals to discuss the issue further. He said that although the DIP operational area did not cover the village of Rossar, he would confer with DIP technicians to see what could be done. On September 2011, the paralegals paid AÖFOLLOW UPÖVISITÖTOÖTHEÖ$)0ÖOFÙCEÖSINCEÖTHEÖ borehole issue had yet to be resolved. DIP management assured the paralegals that he had instructed the technician to go to Rossar village and assess the situation of the borehole. The technician

was occupied with his work in the DIP operational areas and was unable to visit Rossar as well as being unreachable at the time, despite BRAC paralegals’ persistent efforts to engage with him. The technician ÙNALLYÖVISITEDÖTHEÖVILLAGE ÖANDÖAFTERÖ dismantling the pump discovered that the bearing was damaged and needed to be replaced. The total cost of needed repairs amounted to SLL 180,000 (USD 42). The paralegals relayed this information to the local section chief, and helped facilitate collective action with Rossar villagers to raise the needed funds. The bearing was purchased by the technician that very SAMEÖDAYÖANDÖTHEÖBOREHOLEÖWASÖÙXEDÖ A community member said,


Annual Report 2011 17

Development partners


18 Annual Report 2011

BRAC across the world


Annual Report 2011 19


20 Annual Report 2011

Harnessing the Past: Our innovations in the last four decades

Functional education

Village organisations (VOs)

Life skills development education for adults that helps to build solidarity, create a savings mentality and prepare people for new income generation

The most effective medium for catalysing change in disadvantaged communities

Homemade oral rehydration solution campaign

Incentive salary system

A groundbreaking campaign in which 13 million households in Bangladesh learned how to make oral saline at home – a lesson that continues to save millions of lives from diarrhoea

A result oriented incentive package that measures effectiveness of and compensates our community workers and volunteers accordingly

Enterprises for value chain support

Directly observed treatment (DOT) for TB control

An integrated network of our development programmes, enterprises and investments that result in a unique synergy that supports our holistic approach for alleviating poverty

An effective treatment method for tuberculosis, a result of our incentive based salary system for community health workers, ensuring patients’ daily intake of medicine for six months or more

Para-professionals Pioneering models for vaccinators, community health workers and ‘barefoot lawyers’ that provide incentive based jobs for those ready to serve their own communities

Education for dropouts and non entrants Our own primary schools that help disadvantaged children make successful transitions to formal schools

Credit ++ approach An integrated set of services for the landless poor, marginal farmers and small entrepreneurs working together to strengthen the supply chain of the enterprises in which our microfinance borrowers invest


Annual Report 2011 21

Empowerment and livelihood for adolescents A range of initiatives to empower adolescents including skills training, social development and micro-loans for their future businesses.

Hybrid maize A pioneer venture to commercialise corn harvesting, which plays a key role in making farmers shift from traditional single cropping to multiple cropping to maximise land usage during idle seasons

Sharecroppers scheme A phenomenal initiative to offer soft loans for tenant farmers (sharecroppers) with a specially tailored recovery plan

Adolescent clubs

Pre primary schools

Safe spaces where peer driven intervention for adolescents enhance their personal growth and social skills

Our own pre primary schools where we prepare underprivileged children to enter mainstream primary schools

Popular theatre A traditional platform became an effective communication medium to advocate for social changes in rural communities, particularly to the illiterate

Challenging the frontiers of poverty reduction A unique model focusing on extremely deprived women to improve their economic and social situations, allowing ultra poor households to graduate from extreme poverty and enter mainstream development programmes

M-health services

Unique management model

A mobile based platform that community health workers use to collect data and provide a range of real time automated services such as storing patient records, categorising and assessing medical risks, prioritising medical responses and monitoring referrals

A unique management model that focuses on internal control without suffocating creativity, runs our large scale interventions cost effectively, and enables us to constantly learn from the communities we serve across the world

$UWLĂ›FLDOLQVHPLQDWRUV We transformed over 2,000 rural poor into entrepreneurs with an innovative livelihood opportunity: providing fee based ‘door to door’ artificial insemination and education services for livestock farmers

Birthing huts Safe and culturally accepted childbirth places with appropriate services for mothers in urban slums


22 Annual Report 2011

Governance

Sir Fazle Hasan Abed Founder and Chairperson, BRAC

Sir Fazle is recognised by Ashoka as one of the “global greats” and is a founding member of its prestigious Global Academy for Social Entrepreneurship. He was also appointed Knight Commander of the Most Distinguished Order of St. Michael and St. George (KCMG) by the British crown in 2010 in recognition of his services to reducing poverty in Bangladesh and internationally. He has received numerous national and international awards for his achievements in leading BRAC, including WISE Prize – the world’s first major international prize for education by Qatar Foundation (2011), the David Rockefeller Bridging Leadership Award (2008), the Conrad N. Hilton Humanitarian Prize (2008) – the world’s largest humanitarian prize, the Inaugural Clinton Global Citizen Award (2007), the Henry R. Kravis Prize in Leadership (2007)

Dr. Mahabub Hossain

Muhammad A. (Rumee) Ali

Executive Director, BRAC and BRAC International (Ex-officio)

Managing Director, BRAC (Ex-officio)

A renowned agricultural economist, Dr. Hossain is former head of Social Sciences Division of the International Rice Research Institute (IRRI), Philippines and former director General of the Bangladesh Institute of Development Studies (BIDS). He was awarded the first Gold Medal from the Bangladesh Agricultural Economist Association in 1985, in recognition of outstanding contribution to understanding the operation of rural economy in Bangladesh.

Mr. Rumee is the vice chairman of Bangladesh Association of Banks and a member of the Global Steering Committee of the ‘Performance Based Grants Initiative’ of the International Finance Corporation and the Technical Advisory Committee of Bangladesh Investment Climate Fund. He served as the deputy governor of Bangladesh Bank, and country head and general manager of Grindlays Bangladesh. He was appointed the CEO of the Standard Chartered Group in Bangladesh, heading both Standard Chartered Bank and Standard Chartered Grindlays Bank. He also served as a member of the Governing Body of PKSF.

Faruque Ahmed Senior Director BRAC International

Prior to joining BRAC, Mr. Ahmed worked for the World Bank. He is a member of the working group of Bangladesh Health Watch, a civil society initiative, vice chair of Bangladesh Country Coordination Mechanism for Global Funds for AIDS Tuberculosis and Malaria and a member of World Bank Civil Society Consultative Group on Health, Nutrition and Population. He also represented civil society on the GAVI Alliance Board.

Tanwir Rahman Director, Finance, BRAC and BRAC International

Previously, Mr. Rahman was the Divisional Controller for HBG (Hollandsche Beton Groep) Royal BAM, Assistant Controller for Mitchell engineering, Senior Project Accounting Manager for Bovis Lend Lease. Before joining BRAC he worked as Controller for Allied Container System.


Annual Report 2011 23

Governance BRAC Microfinance (SL) Limited Susan Davis

S.N. Kairy

Faruque Ahmed

Tanwir Rahman

President and CEO BRAC USA

CFO BRAC Group

Senior Director BRAC International

Director, Finance BRAC and BRAC International

Neal Delaurentis

Arjuna Costa

Tennyson Williams

T. Negbalee Warner

Soros Economic Development Fund (SEDF)

Omidyar Network (ON)

Open Society Initiative West Africa (OSIWA)

Open Society Initiative West Africa (OSIWA)

Shareholders BRAC (51%) Soros Economic Development Fund (SEDF) (24.5%) Omidyar Network (ON) (24.5%)

Management

Tapan Kumar Karmaker Country Representative, BRAC in Sierra Leone

Syed Humayun Kabir Operating Manager, Microfinance

Mr. Karmaker completed his post-graduation degree in Management from Dhaka University in 1980. During his 30 year career, he has worked with both government and non-government organisations in various capacities. He is experienced in the field of rural development, poverty alleviation and microfinance. Prior to joining BRAC in Sierra Leone as the country representative in February 2012, he worked as director (Microfinance) in RDRS, Bangladesh.


24 Annual Report 2011 Annual Report 2011 24


Annual Report 2011 25


26 Annual Report 2011


BRAC Sierra Leone Financial Statements For the year ended 31 December 2011

This report contains 16 pages Ref: 1002/kk/bow


BRAC SIERRA LEONE Financial statements For the year ended 31 December 2011

GENERAL INFORMATION Board of Directors

:

Sir. Fazle Hasan Abed Dr. Mahabub Hossain Mr. Muhammad A (Rumee) Ali Dr. Imran Matin Mr. Tanwir Rahman

.EĂšBD

:

BRAC Sierra Leone 23 Old Lumley Road Wilberforce Freetown

Project Coordinator

:

BRAC Sierra Leone

: Standard Chartered Bank

Bankers

Auditors

:

KPMG Chartered Accountants Bicentenary House 17 Wallace Johnson Street P O Box 100 Freetown

-

Chairperson Member Member Member Member


BRAC SIERRA LEONE Financial statements For the year ended 31 December 2011

Directors’ responsibility statement Ö

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Other matter

Freetown

Date:

Chartered Accountants


BRAC SIERRA LEONE 2S@SDLDMSĂ˜NEĂ˜ĂšM@MBH@KĂ˜ONRHSHNMĂ˜ as at 31 December 2011 Le In thousands of Leones/USD

USD

Notes

2011

2010

2011

2010

10

453,655Ă– ________ 453,655Ă– ________

 Ă– _______  Ă– _______

104Ă– ____ 104Ă– ____

 ______  ______

Cash and bank balances

11

827,128Ă–

  Ă–

190Ă–

 

Other assets

12

390,985Ă–Ă– _________ 1,218,113Ă– _________ 1,671,768Ă– ========

Ă–Ă– Ă– ________   Ă– ________   Ă– =======

90 _____ 280Ă– _____ 384Ă– ====

4 _____   _____  Ă– ====

1,114,514Ă– _________ 1,114,514Ă– _________

 Ă– _______  Ă– _______

256 _____ 256 _____

60 _____ 60 _____

557,254Ö _________ 557,254Ö _________ Total liabilities 1,671,768Ö ======== 4HESEÖÙNANCIALÖSTATEMENTSÖWEREÖAPPROVEDÖBYÖTHEÖ"OARDÖOFÖ$IRECTORSÖONÖ

  Ă– ________   Ă– ________   Ă– =======

128Ă– ______ 128Ă– ______ 384Ă– =====

 Ă– _______  Ă– _______   =====

Assets Property and equipment Total non current assets

Total current asset Total assets Liabilities and capital fund Current liabilities /THERĂ–PAYABLESĂ–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–

Ă–Ă–Ă–

Total current liabilities

Ă–

Capital fund Donor fund

‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌. Dr Mahabub Hossain %XECUTIVEÖ$IRECTORÖ

13

....‌‌‌‌‌‌‌‌‌‌‌.. Tanwir Rahman, CPA ÖÖÖÖÖÖÖÖÖÖÖÖÖÖ$IRECTORÖ&INANCE

Ă–


BRAC SIERRA LEONE Statement of income and expenditure for the year 31 December 2011

Income Le In thousand of Leones/USD Grant income /THERÖINCOMEÖ

Expenditure 3TAFFÖCOSTSÖANDÖOTHERÖBENEÙTÖ /THERÖGENERALÖADMINISTRATIVE expense Training and workshop ANDÖSEMINARSÖ /CCUPANCYÖEXPENSEÖ Depreciation

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USD

Note

2011

2010

2011

2010

4 Ö

5,548,147Ö 182,548Ö _________ 5,730,695Ö _________

  Ö  Ö ________   Ö ________

1,274 42 ______ 1,316Ö ______

1030 71 _____   _____

Ö

1,894,304Ö

  Ö

435Ö



7

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  Ö

544Ö



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1,165,556Ö 234,205Ö 66,582Ö _________ 5,730,695Ö _________ ========

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BRAC SIERRA LEONE 2S@SDLDMSØNEØB@RGØÛNVØ for the year ended 31 December 2011

Le In thousands of Leones/USD .ETÖCASHÖPROVIDEDÖBYUSEDÖIN OPERATINGÖACTIVITIESÖ

USD

Note

2011

2010

2011

2010

Ö

564,416Ö ________ 564,416Ö =======

 Ö _______  Ö =======

130Ö _____ 130Ö ====

 ____  ====

(70) _____ (70) ====

(26) _____ (26) =====

 Ö

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(994)Ö ______ (994)ÖÖ =====

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Ö

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(4,329,040)Ö __________ (4,329,040)ÖÖÖÖÖÖÖ =========

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Ö

(4,070,380)Ö

   Ö

(934)

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-

-

(100)

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Ö

4,897,508Ö _________ 827,128Ö ========

  Ö _________   Ö ========

1,224Ö ______ 190Ö =====

  ______   =====

Cash and cash equivalents at the end of the year

Ö

11

4HEÖNOTESÖAREÖANÖINTEGRALÖPARTÖOFÖTHESEÖÙNANCIALÖSTATEMENTS


BRAC SIERRA LEONE -NSDRĂ˜SNĂ˜SGDĂ˜ĂšM@MBH@KĂ˜RS@SDLDMSR For the year ended 31 December 2011

 Ă˜

1DONQSHMFĂ˜DMSHSX

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2.

Basis of preparation (a)

Basis of measurement

Ă–

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(b)

Functional and presentation currency

Ă–

Ă–

4HESEÖÙNANCIALÖSTATEMENTSÖAREÖPRESENTEDÖINÖ,EONESÖWHICHÖISÖTHEÖ/RGANSIATIONlSÖFUNCTIONALÖCURRENCYÖÖ!LLÖÙNANCIALÖINFORMATIONÖPRESENTEDÖINÖÖ Leones has been rounded up to the nearest thousand.

 Ă˜

2HFMHĂšB@MSĂ˜@BBNTMSHMFĂ˜ONKHBHDR

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Ă–

4RANSACTIONSÖINÖFOREIGNÖCURRENCIESÖAREÖTRANSLATEDÖTOÖTHEÖRESPECTIVEÖFUNCTIONALÖCURRENCYÖOFÖTHEÖCOMPANYÖATÖEXCHANGEÖRATESÖATÖTHEÖDATESÖOFÖTHEÖ transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currency at the exchange rate at that date. The foreign currency gain or loss on monetary items is the difference between amortised cost in the FUNCTIONALÖCURRENCYÖATÖTHEÖBEGINNINGÖOFÖTHEÖPERIODÖADJUSTEDÖFORÖEFFECTIVEÖINTERESTÖANDÖPAYMENTSÖDURINGÖTHEÖPERIOD ÖANDÖTHEÖAMORTISEDÖCOSTÖINÖ foreign currency translated at the exchange rate at the end of the period. Foreign currency differences arising on retranslation are recognised INÖPROÙTÖORÖLOSS


BRAC SIERRA LEONE -NSDRØSNØSGDØÚM@MBH@KØRS@SDLDMSR For the year ended 31 December 2011

Ø Ø

-NSDRØSNØSGDØÚM@MBH@KØRS@SDLDMSRØBNMSHMTDC 2HFMHÚB@MSØ@BBNTMSHMFØONKHBHDRØBNMSHMTDC (b) Property, plant and equipment Ø Ö

HØ1DBNFMHSHNMØ@MCØLD@RTQDLDMS )TEMSÖOFÖPROPERTY ÖPLANTÖANDÖEQUIPMENTÖAREÖMEASUREDÖATÖCOSTÖLESSÖACCUMULATEDÖDEPRECIATIONÖANDÖIMPAIRMENTÖLOSSES Cost includes expenditures that are directly attributable to the acquisition of the assets. The cost of self constructed assets includes the cost OFÖMATERIALSÖANDÖDIRECTÖLABOUR ÖANYÖOTHERÖCOSTSÖDIRECTLYÖATTRIBUTABLEÖTOÖBRINGINGÖTHEÖASSETSÖTOÖAÖWORKINGÖCONDITIONÖFORÖITSÖINTENDEDÖUSE ÖANDÖTHEÖCOSTÖ OFÖDISMANTLINGÖANDÖREMOVINGÖTHEÖITEMSÖANDÖRESTORINGÖTHEÖSITEÖONÖWHICHÖTHEYÖAREÖLOCATEDÖÖ0URCHASEDÖSOFTWAREÖTHATÖISÖINTEGRALÖTOÖTHEÖFUNCTIONALITYÖ of the related equipment is capitalised as part of that equipment.

Ö

Ö7HENÖPARTSÖOFÖANÖITEMÖOFÖPROPERTY ÖPLANTÖANDÖEQUIPMENTÖHAVEÖDIFFERENTÖUSEFULÖLIVES ÖTHEYÖAREÖACCOUNTEDÖFORÖASÖSEPARATEÖITEMSÖMAJORÖCOMPONENTS Ö OFÖPROPERTY ÖPLANTÖANDÖEQUIPMENT

(ii) Subsequent costs Ö

4HEÖCOSTÖOFÖREPLACINGÖPARTÖOFÖANÖITEMÖOFÖPROPERTY ÖPLANTÖANDÖEQUIPMENTÖISÖRECOGNIZEDÖINÖTHEÖCARRYINGÖAMOUNTÖOFÖTHEÖITEMÖIFÖITÖISÖPROBABLEÖTHATÖTHEÖ FUTUREÖECONOMICÖBENEÙTSÖEMBODIEDÖWITHINÖTHEÖPARTÖWILLÖÚOWÖTOÖTHEÖCOMPANYÖANDÖITSÖCOSTÖCANÖBEÖMEASUREDÖRELIABLYÖÖ4HEÖCOSTÖOFÖTHEÖDAY TO DAYÖ SERVICINGÖOFÖPROPERTY ÖPLANTÖANDÖEQUIPMENTÖAREÖRECOGNISEDÖINÖPROÙTÖORÖLOSSÖASÖINCURRED

(iii) Depreciation Ö

$EPRECIATIONÖISÖRECOGNISEDÖINÖPROÙTÖORÖLOSSÖONÖAÖSTRAIGHTÖLINEÖBASISÖOVERÖTHEÖESTIMATEDÖUSEFULÖLIVESÖOFÖEACHÖPARTÖOFÖANÖITEMÖOFÖPROPERTY ÖPLANTÖANDÖ equipment.

Ö

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Ö Ö

%QUIPMENTÖ Furniture -OTORÖVEHICLES ÖMOTORÖBIKESÖANDÖBICYCLESÖ

Ö

$EPRECIATIONÖMETHODS ÖUSEFULÖLIVESÖANDÖRESIDUALÖVALUESÖAREÖREASSESSEDÖATÖTHEÖREPORTINGÖDATE

Years ÖÖÖÖÖ 10 ÖÖÖÖÖ


BRAC SIERRA LEONE -NSDRØSNØSGDØÚM@MBH@KØRS@SDLDMSR For the year ended 31 December 2011

-NSDRØSNØSGDØÚM@MBH@KØRS@SDLDMSRØBNMSHMTDC 2HFMHÚB@MSØ@BBNTMSHMFØONKHBHDRØBNMSHMTDC (iv) Disposals Ö

'AINSÖORÖLOSSESÖONÖTHEÖDISPOSALÖORÖSCRAPPINGÖOFÖPROPERTY ÖPLANTÖANDÖEQUIPMENTÖAREÖDETERMINEDÖASÖTHEÖDIFFERENCEÖBETWEENÖTHEÖSALESÖPRICEÖLESSÖTHEÖ cost of dismantling selling and re-establishing the assets and the carrying amount. Any gains or losses are recognised in the income statement as OTHERÖOPERATINGÖINCOMEÖORÖEXTERNALÖEXPENSESÖRESPECTIVELY

(c)

Investments

Ö

)FÖ THEÖ /RGANISATIONÖ HASÖ THEÖ POSITIVEÖ INTENTÖ ANDÖ ABILITYÖ TOÖ HOLDÖ DEBTÖ SECURITIESÖ TOÖ MATURITY Ö THENÖ SUCHÖ ÙNANCIALÖ ASSETSÖ AREÖ CLASSIÙEDÖ ASÖ HELD TOÖ MATURITYÖÖ(ELD TO MATURITYÖÙNANCIALÖASSETSÖAREÖRECOGNISEDÖINITIALLYÖATÖFAIRÖVALUEÖPLUSÖANYÖDIRECTLYÖATTRIBUTABLEÖTRANSACTIONÖCOSTSÖÖ3UBSEQUENTLYÖTOÖINITIALÖ RECOGNITIONÖHELD TO MATURITYÖÙNANCIALÖASSETSÖAREÖMEASUREDÖATÖAMORTISEDÖCOSTÖUSINGÖTHEÖEFFECTIVEÖINTERESTÖMETHOD ÖLESSÖANYÖIMPAIRMENTÖLOSSESÖÖ!NYÖ SALEÖORÖRECLASSIÙCATIONÖOFÖAÖMOREÖTHANÖSIGNIÙCANTÖAMOUNTÖOFÖHELD TO MATURITYÖINVESTMENTSÖNOTÖCLOSEÖTOÖTHEIRÖMATURITYÖWOULDÖRESULTÖINÖTHEÖRECLASSIÙCATIONÖ OFÖALLÖHELD TO MATURITYÖINVESTMENTSÖASÖAVAILABLE FOR SALE ÖANDÖPREVENTÖTHEÖ/RGANISATIONÖFROMÖCLASSIFYINGÖINVESTMENTÖSECURITIESÖASÖHELD TO MATURITYÖFORÖ THEÖCURRENTÖANDÖTHEÖFOLLOWINGÖTWOÖÙNANCIALÖYEARSÖÖ

(d)

Cash and cash equivalents

Ö

#ASHÖ ANDÖ CASHÖ EQUIVALENTSÖ INCLUDEÖ NOTESÖ ANDÖ COINSÖ ONÖ HANDÖ ANDÖ UNRESTRICTEDÖ BALANCESÖ WITHÖ BANKSÖ THATÖ AREÖ USEDÖ BYÖ THEÖ /RGANISATIONÖ INÖ THEÖ management of its short-term commitments.

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EØØØØØ#NMNQØFQ@MSR Ö

)NCOMEÖFROMÖDONORÖGRANTSÖISÖRECOGNIZEDÖWHENÖCONDITIONSÖONÖWHICHÖTHEYÖDEPENDÖHAVEÖBEENÖMETÖÖ3UBSTANTIALLY ÖDONORÖGRANTSÖAREÖFORÖTHEÖFUNDINGÖOFÖ projects and programs and for these grants income is recognized to equate to expenditure incurred on projects and programs. For donor grants WHICHÖINVOLVEÖFUNDINGÖFORÖÙXEDÖASSETS ÖGRANTÖINCOMEÖISÖRECOGNIZEDÖASÖTHEÖAMOUNTÖEQUIVALENTÖTOÖDEPRECIATIONÖEXPENSESÖCHARGEDÖONÖTHEÖÙXEDÖASSETSÖ concerned.

Ö

!LLÖDONORÖGRANTSÖRECEIVEDÖAREÖINITIALLYÖRECORDEDÖASÖLIABILITIESÖINÖ'RANTSÖ2ECEIVEDÖINÖ!DVANCEDÖ!CCOUNTÖÖ&ORÖGRANTSÖUTILIZEDÖTOÖPURCHASEÖÙXEDÖASSETS Ö THEÖDONORÖGRANTSÖAREÖTRANSFERREDÖTOÖDEFERREDÖINCOMEÖACCOUNTSÖWHILSTÖFORÖGRANTSÖUTILIZEDÖTOÖREIMBURSEÖPROGRAM RELATEDÖEXPENDITURE ÖTHEÖAMOUNTSÖAREÖ recognized as income.


BRAC SIERRA LEONE -NSDRØSNØSGDØÚM@MBH@KØRS@SDLDMSR For the year ended 31 December 2011

-NSDRØSNØSGDØÚM@MBH@KØRS@SDLDMSRØBNMSHMTDCØ 2HFMHÚB@MSØ@BBNTMSHMFØONKHBHDRØBNMSHMTDC FØ

&Q@MSØHMBNLDØ

Ö

4HISÖREPRESENTÖAMOUNTÖRELEASEDÖFROMÖDEFERREDÖINCOMEÖANDÖGRANTÖRECEIVEDÖINÖADVANCEÖACCOUNTÖANDÖREPORTEDÖASÖINCOMEÖFORÖTHEÖPERIOD

(h)

Other income Other income comprises foreign exchange gains and bank interest.

HØ

2DFLDMSØQDONQSHMF

Ö

4HEÖORGANISATIONÖOPERATESÖINÖONLYÖONEÖECONOMICÖENVIRONMENTÖpÖ3IERRAÖ,EONEÖANDÖDOESÖNOTÖCONSIDERÖTHATÖREPORTINGÖBYÖBUSINESSÖSEGMENTÖWILLÖLEADÖ TOÖAÖCLEARERÖUNDERSTANDINGÖOFÖTHEÖÙNANCIALÖSTATEMENTS

(j)

Staff cost

Ö

3TAFFÖ COSTÖ COMPRISEÖ OFÖ SALARIESÖ ANDÖ ALLOWANCESÖ OFÖ ADMINISTRATIVEÖ STAFFÖ ANDÖ PROJECTÖ EMPLOYEES Ö SOCIALÖ SECURITYÖ CONTRIBUTIONÖ ANDÖ OTHERÖ RELATEDÖ expenses.

JØ

3Q@HMHMFØ@MCØKHUDRSNBJØBNRS

Ö

4RAININGÖANDÖLIVESTOCKÖCOSTÖCOMPRISEÖOFÖRESEARCHÖANDÖEVALUATION ÖTRAININGÖANDÖVACCINE

(l)

Administrative expenses

Ö

!DMINISTRATIVEÖEXPENSESÖCOMPRISEÖEXPENSESÖRELATINGÖTOÖADMINISTRATIVEÖANDÖMANAGEMENT ÖINCLUDINGÖOFÙCEÖEXPENSES ÖDEPRECIATIONÖASÖWELLÖASÖOTHERÖ indirect costs.

(m)

Income tax expense The organisation is exempt from paying taxes.

4.

Grant income



)NTHOUSANDSOF,EONES53$

Ö Ö

4RANSFERREDÖFROMÖGRANTÖRECEIVEDÖINÖ ADVANCESÖACCOUNTÖ Transferred from deferred income as a release to match the depreciation charge for the period

Le

USD

2011

2010

2011

2010

5,481,565Ö

  Ö

1,259

1022

66,582Ö _________ 5,548,147Ö ========

 Ö _________   Ö ========

15Ö _____ 1,274Ö ====

Ö _____  Ö ====


BRAC SIERRA LEONE -NSDRĂ˜SNĂ˜SGDĂ˜ĂšM@MBH@KĂ˜RS@SDLDMSR For the year ended 31 December 2011

-NSDRĂ˜SNĂ˜SGDĂ˜ĂšM@MBH@KĂ˜RS@SDLDMSRĂ˜BNMSHMTDCĂ˜ 5.

Other income Le )NTHOUSANDSOF,EONES53$

Ă–

Bank interest Foreign exchange gain 2EVOLVINGĂ–FUNDĂ–FORĂ–AGRICULTUREĂ–PROGRAMĂ– Income from poultry stock Income from agriculture Income from health program Income from laboratory 3TARTĂ–UPĂ–FUNDĂ–FROMĂ–HEALTHĂ–VOLUNTEERSĂ–

 Ă˜

2S@EEĂ˜BNRSĂ˜@MCĂ˜NSGDQĂ˜ADMDĂšS



)NTHOUSANDSOF,EONES53$

Ă–

Ă–

Salaries Other staff costs

 Ă˜

2010

2011

2010

1,243Ă– -Ă– 5,748 48,448 21,145Ă– 28,385 12,405 65,174

 Ă–  Ă– 766 433  Ă– -

1 11 5 7 3 15

4 66 1 -

_______ 182,548Ă– ======

_______  Ă– =======

_____ 42 ====

_____ 71 =====

2011

2010

2011

2010

1,888,304Ă– 6,000Ă– _________ 1,894,304Ă– =======

 Ă–  Ă– ________   Ă– =======

434Ă– 1Ă– ______ 435Ă– =====

Ă– Ă– ______ Ă– =====

2011

2010

2011

2010

232,198Ă– 47,578Ă– 604,905Ă– 882,488Ă– 280,106Ă– 188,513Ă– 134,260 _________ 2,370,048Ă– =======

 Ă–  Ă–  Ă–  Ă–  Ă–  Ă– ________   Ă– =======

53 11Ă– 139Ă– 203 64Ă– 43 31 ______ 544Ă– ===

41 Ă– Ă– 171 Ă– 106 ______ Ă– ====

2011

2010

2011

2010

520,032Ă– 163,887Ă– 481,637Ă– _________ 1,165,556Ă– =======

 Ă–  Ă–  Ă– ________   Ă– =======

119Ă– 38 111Ă– ______ 268Ă– ====

Ă– 36 Ă– ______ Ă– ====

2011

2010

2011

2010

234,205Ă– ======

 Ă– ======

54 ===

71 ===

.SGDQĂ˜FDMDQ@KĂ˜@MCĂ˜@CLHMHRSQ@SHNMĂ˜DWODMRDR )NTHOUSANDSOF,EONES53$

Ă–

USD

2011

Maintenance and general expense Audit fees 4RANSPORTĂ–ANDĂ–TRAVELINGĂ– Management and logistics Stationery and suppliers Other operating expenses Foreign exchange (loss)/gain

 Ă˜

3Q@HMHMF Ă˜VNQJRGNOĂ˜@MCĂ˜RDLHM@QRĂ˜



)NTHOUSANDSOF,EONES53$

Ă– Ă–

2ESEARCHĂ–ANDĂ–EVALUATIONĂ– Training cost &ARMINGĂ–ANDĂ–LIVESTOCKĂ–

9.

Occupancy expenses



)NTHOUSANDSOF,EONES53$ Rent and utilities

Ă–

Ă– Ă–


BRAC SIERRA LEONE -NSDRĂ˜SNĂ˜SGDĂ˜ĂšM@MBH@KĂ˜RS@SDLDMSR For the year ended 31 December 2011 -NSDRĂ˜SNĂ˜SGDĂ˜ĂšM@MBH@KĂ˜RS@SDLDMSRĂ˜BNMSHMTDCĂ˜ 10.

Property and equipment

)NTHOUSANDSOF,EONES53$

Ă– Ă–

Cost !TĂ–Ă–*ANUARYĂ–Ă–Ă– !DDITIONSĂ– At 31 December 2010

Ă– Ă–

!TĂ–Ă–*ANUARYĂ–Ă– !DDITIONSĂ– At 31 December 2011

Ă– Ă–

Accumulated depreciation !TĂ–Ă–*ANUARYĂ–Ă– #HARGEĂ–FORĂ–THEĂ–YEARĂ– At 31 December 2010

Ă–

At 1 January 2011 #HARGEĂ–FORĂ–THEĂ–YEARĂ– At 31 December 2011

Ă–

Carrying amount !SĂ–ATĂ–Ă–$ECEMBERĂ–Ă– As at 31 December 2011

11.

Plant & ,@BGHMDQXĂ˜

Motor vehicle Ă˜AHBXBKDĂ˜

Furniture & ĂšWSTQDRĂ˜

3NS@KĂ˜Ă˜

 Ă–  Ă–  Ă–  Ă–  Ă–  Ă–  Ă–  Ă–  ________________________________________________________________________ 1,950 94,824 154,740 251,514 63 ============================================================  Ă–  Ă–  Ă–  Ă–   Ă–  Ă–  Ă–  Ă–  _______________________________________________________________________ 173,846 102,329 281,095 557,270 133 ============================================================ Ă–  Ă–  Ă–  Ă–  Ă–  Ă–  Ă–  Ă–  _______________________________________________________________________ 431 22,072 14,530 37,033 9 ============================================================ 431 22,072 14,530 37,033 9  Ă–  Ă–  Ă–  Ă–  _______________________________________________________________________ 24,217 42,297 37,101 103,615 24 ===========================================================  Ă–  Ă–  Ă–  Ă–  =========================================================== 149,629 60,032 243,994 453,655 104 ===========================================================

Cash and bank balances Le )NTHOUSANDSOF,EONES53$ Bank balance Cash in hand

12.

USD

2011

2010

2011

2010

822,851Ă– 4,277Ă– _______ 827,128Ă– ======

  Ă–  Ă– ________   Ă– =======

189Ă– 1 ____ 190Ă– ====

 Ă– 3 _____  Ă– =====

2011

2010

2011

2010

-Ă– 390,985 ________ 390,985Ă– =======

 Ă– _______  Ă– ======

90 ____ 90 ===

4 ____ 4 ====

Other assets Le )NTHOUSANDSOF,EONES53$

Ă–

42#

Sundry debtor /THERĂ–RECEIVABLEĂ–

Ă–

USD


BRAC SIERRA LEONE -NSDRĂ˜SNĂ˜SGDĂ˜ĂšM@MBH@KĂ˜RS@SDLDMSR For the year ended 31 December 2011 -NSDRĂ˜SNĂ˜SGDĂ˜ĂšM@MBH@KĂ˜RS@SDLDMSRĂ˜BNMSHMTDCĂ˜ 13.

Donor fund Le )NTHOUSANDSOF,EONES53$

Ă–

$ONORĂ–FUNDĂ–RECEIVEDĂ–INĂ–ADVANCEĂ– Deferred income

Note

USD

2011

2010

2011

2010

Ă–

103,598Ă– 453,656Ă– ________ 557,254Ă– =======

  Ă–  Ă– ________   Ă– =======

24Ă– 104Ă– _____ 128Ă– ====

  Ă– _____  Ă– ====

Note

2011

2010

2011

2010

4,671,812Ă–

  Ă–

1,168Ă–

 

828,122Ă–

  Ă–

190

341

(305,756)Ă– (5,481,565)Ă– 390,985 _________ 103,598Ă– ========

  Ă–    Ă– _________   Ă– ========

(165) (1,259)Ă– 90 _____ 24Ă– ====

(26)   _____   =====

2011

2010

2011

2010

-Ă– 148,985Ă– 274,737 66,958 183,227 78,000 76,215

  Ă–  Ă– -

34Ă– Ă– 63 15 42 18 18

Ă– Ă– -

_______ 828,122Ă– ======

________   Ă– =======

_____ 190 ====

_____ 341 ====

2011

2010

13.1 Donor fund received in advance Le )NTHOUSANDSOF,EONES53$

Ă–

Ă– Ă–

Opening balance $ONATIONÖRECEIVEDÖDURING the year Transferred to deferred incomeINVESTMENTÖINÖÙXEDÖASSET Ö Transferred to donations $ONATIONÖRECEIVABLEÖ

Ă– Ă–

USD

  Ă˜ #NM@SHNMĂ˜QDBDHUDCĂ˜CTQHMFĂ˜SGDĂ˜XD@QĂ˜ Le 

)NTHOUSANDSOF,EONES53$

Note

FOSI/OSIWA OSI-Zug Trociaire AGRA London Mining Unicef W.F.P

14.

Deferred income



)NTHOUSANDSOF,EONES53$

Ă–

Balance at start 4RANSFERREDĂ–FROMĂ–'RANTĂ–RECEIVEDĂ– INĂ–ADVANCEĂ–ACCOUNTĂ–Ă– Transferred to other income (as release from deferred income to match depreciation charge) Balance at 31 December

Ă–

USD

2011

2010

214,482Ă–

Ă– Ă–

305,756Ă–

Ă– Ă–Ă–

70

26

(66,582)Ă– _______ 453,656Ă– ======

  Ă– _______  Ă– ======

(15) _____ 104Ă– ====

(7) _____  ===

49Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–

Ă– Ă–

Ă–


BRAC SIERRA LEONE -NSDRĂ˜SNĂ˜SGDĂ˜ĂšM@MBH@KĂ˜RS@SDLDMSR For the year ended 31 December 2011 -NSDRĂ˜SNĂ˜SGDĂ˜ĂšM@MBH@KĂ˜RS@SDLDMSRĂ˜BNMSHMTDCĂ˜ 15.

Other payable Le )NTHOUSANDSOF,EONES53$

Ă– Ă–

USD

2011

2010

2011

2010

Ă– Ă–

Ă–  Ă–

 Ă–  Ă–

Ă– 139Ă–

Ă– Ă–

Ă– Ă– Ă–

3UNDRYÖCREDITORSÖ !CCRUEDÖEXPENSESÖ Payable to Stichting BRAC)NTERNATIONALÖ 0AYABLEÖTOÖ-ICROÙNANCEÖ 2ECEIVABLEÖFROMÖ-ICROÙNANCEÖ

Ă– Ă– Ă–

Ă–

Ă–

Ă–

 Ă–  Ă–   Ă– ________   Ă– =======

Ă– Ă– Ă– _______  Ă– ======

28 90 (1) ____ 256 ====

_____ 60 ====

2011

2010

2011

2010

66,582Ă– ______

 Ă– ______

15 _____

7 ____

 Ă–

15

 Ă˜ "@RGĂ˜Ă›NVĂ˜EQNLĂ˜NODQ@SHMFĂ˜@BSHUHSHDRĂ˜ Le 

)NTHOUSANDSOF,EONES53$

Ă–

%XCESSĂ–OFĂ–INCOMEĂ–OVERĂ–EXPENDITUREĂ– Depreciation

Ă–

#ASHĂ–ĂšOWĂ–BEFOREĂ–CHANGESĂ–IN working capital Changes in working capital Changes in other assets Changes in other payables

Ă–

66,582Ă–

USD

7

 Ă– Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă– (86)Ă–Ă–   Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă– 200 ________ _____  Ă– 130Ă– ======= ====

(374,475)Ă– 872,309Ă– ________ 564,416Ă– =======

Ă– (27) ____ Ă– ====

 Ă˜ "NMSHMFDMSĂ˜KH@AHKHSHDR There were no contingent liabilities at the balance sheet date.

18.

Related party

Ă–

4HEÖ ORGANISATIONÖ HASÖ AÖ RELATEDÖ PARTYÖ RELATIONSHIPÖ WITHÖ "2!#Ö -ICROÙNANCEÖ 3, Ö ,IMITEDÖ "2!#Ö 3IERRAÖ ,EONEÖ INCURREDÖ EXPENSESÖ ONÖ BEHALFÖ OFÖ "2!#Ö -ICROÙNANCE Year end balance arising from transactions with related party Le )NTHOUSANDSOF,EONES53$ Intercompany payable

USD

2011

2010

2011

2010

120,577 ======

====

28 ====

===


BRAC SIERRA LEONE -NSDRØSNØSGDØÚM@MBH@KØRS@SDLDMSR For the year ended 31 December 2011 -NSDRØSNØSGDØÚM@MBH@KØRS@SDLDMSRØBNMSHMTDCØ 19.

Capital commitments

Ö

4HEREÖWEREÖNOÖCAPITALÖCOMMITMENTSÖATÖTHEÖÙNANCIALÖPOSITIONÖDATE

20.

Post balance sheet events

Ö

%VENTSÖSUBSEQUENTÖTOÖTHEÖÙNANCIALÖPOSITIONÖDATEÖAREÖDISCLOSEDÖONLYÖTOÖTHEÖEXTENTÖTHATÖTHEYÖRELATEÖDIRECTLYÖTOÖTHEÖÙNANCIALÖSTATEMENTSÖANDÖTHEIRÖ EFFECTÖISÖMATERIALÖÖ!SÖATÖTHEÖDATEÖOFÖSIGNINGÖTHISÖSETÖOFÖÙNANCIALÖSTATEMENTS ÖTHEREÖWEREÖNOÖMATERIALÖPOSTÖBALANCEÖSHEETÖEVENTSÖ


"2!#Ö-ICROÙNANCEÖ3, Ö,IMITEDÖ Financial Statements For the year ended 31 December 2011

This report contains 24 pages Ref: L10/gh/bow


BRAC MICROFINANCE (SL) LIMITED Financial Statement for the year ended 31 December 2011

General information DirectorsĂ–

Ă–Ă– -SĂ–3USANĂ–$AVISĂ– Dr. Imran Matin Mr. S.N. Kairy Mr. Tanwir Rahman Mr. Neal Delaurentis Mr. Arjuna Costa Mr. Tennyson Williams Mr. T. Negbalee Warner

1DFHRSDQDCĂ˜.EĂšBD

:

23 Old Lumley Road Freetown

Secretary

:

Mr. Syed Humayun Kabir

Bankers

:

Standard Chartered Bank Rokel Commercial Bank Sierra Leone Limited Ecobank SL Ltd First International Bank Ltd

Auditors

:

KPMG Chartered Accountants Bicentenary House 17 Wallace Johnson Street Freetown.

Ă– -

#HAIRPERSON Director Director Director Director Director Director Director


BRAC MICROFINANCE (SL) LIMITED Financial Statement for the year ended 31 December 2011

Report of the directors Ö

4HEÖDIRECTORSÖHAVEÖPLEASUREÖINÖSUBMITTINGÖTHEIRÖREPORTÖANDÖÙNANCIALÖSTATEMENTSÖONÖTHEÖAFFAIRSÖOFÖTHEÖCOMPANYÖFORÖTHEÖYEARÖENDEDÖÖ$ECEMBERÖ

Principal activity Ö

4HEÖCOMPANYÖISÖENGAGEDÖINÖMICROÖCREDITÖÙNANCINGÖACTIVITIES

Directors’ responsibility statement Ö

4HEÖCOMPANYlSÖDIRECTORSÖAREÖRESPONSIBLEÖFORÖTHEÖPREPARATIONÖANDÖFAIRÖPRESENTATIONÖOFÖTHEÖÙNANCIALÖSTATEMENTS ÖCOMPRISINGÖTHEÖÙNANCIALÖPOSITIONÖASÖATÖÖ $ECEMBERÖÖANDÖTHEÖSTATEMENTÖOFÖCOMPREHENSIVEÖINCOME ÖTHEÖSTATEMENTÖOFÖCHANGESÖINÖEQUITYÖANDÖTHEÖSTATEMENTÖOFÖCASHÖÚOWSÖFORÖTHEÖYEARÖTHENÖ ENDED ÖANDÖTHEÖNOTESÖTOÖTHEÖÙNANCIALÖSTATEMENTS ÖWHICHÖINCLUDEÖAÖSUMMARYÖOFÖSIGNIÙCANTÖACCOUNTINGÖPOLICIESÖANDÖOTHERÖEXPLANATORYÖNOTES ÖANDÖTHEÖREPORTÖ OFÖTHEÖDIRECTORSÖINÖACCORDANCEÖWITHÖNOTEÖÖOFÖTHEÖÙNANCIALÖSTATEMENTS ÖANDÖFORÖÖSUCHÖINTERNALÖCONTROLÖASÖTHEÖDIRECTORSÖDETERMINEÖISÖNECESSARYÖTOÖENABLEÖÖ THEÖÖPREPARATIONÖOFÖÙNANCIALÖSTATEMENTSÖTHATÖAREÖFREEÖÖFROMÖMATERIALÖMISSTATEMENT ÖWHETHERÖDUEÖTOÖFRAUDÖORÖERROR

Capital adequacy Ö

4HEÖ"ANKÖOFÖ3IERRAÖ,EONEÖISÖREQUIREDÖTOÖPRESCRIBEÖAÖMINIMUMÖCAPITALÖADEQUACYÖRATIOÖFORÖÙNANCIALÖINSTITUTIONS ÖBUTÖTHISÖISÖYETÖTOÖBEÖDETERMINEDÖFORÖMICROÖ ÙNANCINGÖINSTITUTIONSÖÖÖÖÖ

Results for the year Ö

4HEÖORGANISATIONÖMADEÖAÖLOSSÖOFÖ,EÖÖBILLIONÖFORÖTHEÖYEARÖENDEDÖÖ$ECEMBERÖ ÖBEFOREÖTHEÖNETÖUNREALISEDÖFOREIGNÖEXCHANGEÖGAINÖSHOWNÖINÖOTHERÖ COMPREHENSIVEÖINCOME

Directors and their interest The names of the directors are on page 1. None of the directors had any interest in the share capital of the company and no director has or had during THEÖPERIOD ÖAÖMATERIALÖINTERESTÖINÖANYÖCONTRACTÖORÖARRANGEMENTÖOFÖSIGNIÙCANCEÖTOÖWHICHÖTHEÖORGANISATIONlSÖWASÖORÖISÖAÖPARTY

Property and equipment Ö

$ETAILSÖOFÖTHEÖCOMPANYlSÖPROPERTYÖANDÖEQUIPMENTÖAREÖSHOWNÖINÖNOTEÖÖTOÖTHEÖÙNANCIALÖSTATEMENTS

Employment of disabled people Ö

"2!#Ö -ICROÙNANCEÖ 3, Ö ,IMITEDÖ ISÖ ANÖ EQUALÖ OPPORTUNITYÖ EMPLOYERÖ ANDÖ ADHERESÖ STRICTLYÖ TOÖ THEÖ PRINCIPLEÖ OFÖ MERITOCRACYÖ ANDÖ FAIRNESSÖ INÖ ALLÖ MAKINGÖ $ISCRIMINATIONÖOFÖANYÖINDIVIDUALÖEMPLOYEEÖORÖGROUPÖOFÖEMPLOYEESÖONÖTHEÖBASISÖOFÖSEX ÖNATIONALITYÖORÖRELIGIONÖBYÖANOTHERÖEMPLOYEEÖOFÖGROUPÖOFÖEMPLOYEE Ö IFÖPROVEN ÖWILLÖBEÖREGARDEDÖASÖAÖSANCTIONABLEÖOFFENCEÖ4HEREÖWEREÖNOÖDISABLEDÖPEOPLEÖINÖEMPLOYMENTÖOFÖTHEÖCOMPANYÖASÖATÖÖ$ECEMBERÖ


BRAC MICROFINANCE (SL) LIMITED Financial Statement for the year ended 31 December 2011

Report of the directors (continued) Health, safety and welfare at work Ă–

"2!#Ö-ICROÙNANCEÖ3, Ö,IMITEDÖSUPPORTSÖTHEÖPHYSICALÖANDÖEMOTIONALÖWELLÖBEINGÖOFÖITSÖEMPLOYEESÖÖ4HEREFORE ÖTHEÖCOMPANYÖPROVIDESÖPAIDÖSICKÖLEAVEÖTOÖALLÖ PERSONNELÖ$OCTORSÖAPPROVEDÖBYÖTHEÖCOMPANYÖGRANTÖALLÖSICKÖLEAVES

Ă˜

$LOKNXDDĂ˜HMUNKUDLDMSĂ˜@MCĂ˜SQ@HMHMF

Ă–

"2!#Ö-ICROÙNANCEÖ3, Ö,IMITEDÖISÖCOMMITTEDÖTOÖTHEÖSMOOTHÖPROGRESSIONÖOFÖITSÖEMPLOYEESÖTOÖMEETÖCURRENTÖANDÖFUTUREÖNEEDSÖOFÖTHEÖCOMPANYÖANDÖCAREERÖ aspirations of employees. The company has a career track to ensure that progression of appropriately skilled and experienced employees meet current and future needs of the company and its employees.

Ă–

4RAININGÖ ANDÖ DEVELOPMENTÖ INÖ "2!#Ö -ICROÙNANCEÖ 3, Ö ,IMITEDÖ ISÖ AÖ CONTINUOUS Ö FORMALÖ PROCESSÖ OFÖ IMPROVINGÖ INDIVIDUALÖ PERFORMANCEÖ ANDÖ COMPETENCYÖÖ 4RAININGÖSERVESÖASÖAÖVEHICLEÖFORÖTHEÖTRANSFERÖANDÖDEVELOPMENTÖOFÖREQUISITEÖSKILLSÖANDÖAIMSÖATÖBUILDINGÖUPÖANÖEMPOWEREDÖWORKFORCEÖÖ!NNUALÖTRAININGÖPLANSÖAREÖ DEVELOPEDÖTOÖALIGNÖWITHÖTHEÖCOMPANYÖSTRATEGYÖANDÖDESIGNÖTOÖSUPPORTÖSPECIÙCÖPERFORMANCEÖOBJECTIVESÖFORÖEACHÖYEARÖ

Auditors Ă–

Ă˜

4HEÖAUDITORSÖHAVEÖINDICATEDÖ THEIRÖWILLINGNESSÖ FORÖ CONTINUEDÖ INÖ OFÙCEÖ ANDÖ INÖ ACCORDANCEÖ WITHÖ3ECTIONÖÖ OFÖ THEÖ3IERRAÖ,EONEÖ COMPANIESÖ!CTÖ ÖAÖ resolution for the re-appointment of KPMG as auditors of the Company is to propose at the forthcoming Annual General Meeting.

OOQNU@KĂ˜NEĂ˜SGDĂ˜ĂšM@MBH@KĂ˜RS@SDLDMSR

Ă–

4HEÖBOARDÖOFÖDIRECTORSÖAPPROVEDÖTHEÖÙNANCIALÖSTATEMENTSÖONÖÖ

Ă–

___________________________ Susan Davis #HAIRPERSONĂ–

___________________________ Tanwir Rahman, CPA Director Finance

_____________________________ S N Kairy Ö #HIEFÖ&INANCIALÖ/FÙCER

_____________________________ Syed Humayun Kabir Secretary


Independent Auditor’s Report to the Ø

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Auditor’s responsibility Ö

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Opinion Ö

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Independent Auditor’s Report to the Ø

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Freetown

Date:

Chartered Accountants


BRAC MICROFINANCE (SL) LIMITED 2S@SDLDMSĂ˜NEĂ˜ĂšM@MBH@KĂ˜ONRHSHNMĂ˜ As at 31 December 2011

Asset Le )NTHOUSANDSOF,EONES53$ Cash and bank balance Short term deposit ,OANSĂ–ANDĂ–ADVANCESĂ–TOĂ–CUSTOMERSĂ– /THERĂ–ASSETĂ– Property and equipment

USD

Notes

2011

2010

2011

2010

12 13 Ă– Ă– 16

6,310,655Ă– 1,210,983Ă– 9,124,799Ă– 867,633Ă– 804,416Ă– __________ 18,318,486Ă– ========

  Ă–   Ă–   Ă–  Ă–  Ă– __________   Ă– ========

1,449Ă– 278 2,096Ă– 189Ă– 195Ă– ______ 4,207Ă– =====

  277     _____   ====

17 Ă– Ă– 20 11c 11b

2,043,534Ă– 149,135 399,753 309,432Ă– 62,676Ă– 22,997Ă– _________ 2,987,527Ă– _________

  Ă–  Ă–  Ă–  Ă– _________   Ă– _________

469 34 92 71Ă– 15 6 ____ 687Ă– ____

414  11 13 _____  _____

22 21

12,244,890Ă– 709,750Ă– (1,308,755)Ă– 3,685,074 __________ 15,330,959Ă– __________ 18,318,486Ă– ========

  Ă–   Ă–   Ă– __________   Ă– __________   Ă– ========

2,811Ă– 163Ă– (301) 847 _____ 3,520Ă– _____ 4,207Ă– ====

   443 _____   _____   ====

Total assets Current liabilities Loan security fund 2ELATEDĂ–PARTYĂ–PAYABLESĂ– "ORROWINGSĂ– Other liabilities Deferred tax liability Current tax liability Total liabilities Equity Share capital Donor fund Retained earnings Donated equity Total capital fund Total liabilities and capital fund

4HESEÖÙNANCIALÖSTATEMENTSÖWEREÖAPPROVEDÖBYÖTHEÖ"OARDÖOFÖ$IRECTORSÖONÖ

___________________________ Susan Davis #HAIRPERSONĂ–

_____________________________ S N Kairy Ö #HIEFÖ&INANCIALÖ/FÙCER

___________________________ Tanwir Rahman, CPA Director Finance

_____________________________ Syed Humayun Kabir Secretary

4HEÖNOTESÖAREÖANÖINTEGRALÖPARTÖOFÖTHESEÖÙNANCIALÖSTATEMENTS


BRAC MICROFINANCE (SL) LIMITED Statement of comprehensive income for the year ended 31 December 2011

Le )NTHOUSANDSOF,EONES53$ 3ERVICEĂ–CHARGEĂ–ONĂ–LOANĂ– Interest expense

2011

2010

2011

2010

Ă–

4,258,394Ă– _________ 4,258,394Ă–

  Ă– ________   Ă–

978Ă– _____ 978Ă–

 ________ Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–

6 7

308,565Ă– 454,604Ă– _________ 5,021,563Ă– _________

 Ă–   Ă– ________   Ă– _________

71Ă– 104Ă– _____ 1,153Ă– _____

  _____   _____

Ă–

(959,249)Ă– _________ 4,062,314Ă– _________

  Ă– ________   Ă– _________

(220) _____ 933Ă– _____

(73) _____   _____

Ă– 10 16

(3,789,339)Ă– (3,214,655)Ă– (119,069)Ă– __________ (7,123,063)Ă– __________

   Ă–    Ă–   Ă– _________    Ă– _________

(870)Ă– (739)Ă– (27) ______ (1,636)Ă– ______

  (17) _____  _____

(3,060,749)Ă–

 Ă–

(703)

31

(18,251)Ă– __________ (3,079,000)Ă– ======== __________ (3,079,000)Ă– ========

  Ă–Ă– _______  Ă– ====== _______  Ă– ======

(4) ______ (707) ===== ______ (707) =====

(20) _____ 11 ==== _____ 11 ====

-DSĂ˜HMBNLDĂ˜EQNLĂ˜RDQUHBDĂ˜BG@QFD Membership fees and other charge Other income 3NS@KĂ˜NODQ@SHMFĂ˜HMBNLD

.ETĂ–IMPAIRMENTĂ–LOSSĂ–ONĂ–LOANSĂ– .ODQ@SHMFĂ˜HMBNLDĂ˜@ESDQĂ˜HLO@HQLDMSĂ˜BG@QFDR

3TAFFĂ–COSTĂ–Ă– Other operating costs Depreciation Total expenditure

+NRROQNĂšSĂ˜ADENQDĂ˜HMBNLDĂ˜S@WĂ˜ Income tax expense +NRROQNĂšSĂ˜ENQĂ˜SGDĂ˜XD@Q Other comprehensive income Total comprehensive income for the year

USD

Notes

11a

4HESEÖÙNANCIALÖSTATEMENTSÖWEREÖAPPROVEDÖBYÖTHEÖ"OARDÖOFÖ$IRECTORSÖONÖ

___________________________ Susan Davis #HAIRPERSONĂ–

_____________________________ S N Kairy Ö #HIEFÖ&INANCIALÖ/FÙCER

___________________________ Tanwir Rahman, CPA Director Finance

_____________________________ Syed Humayun Kabir Secretary

4HEÖNOTESÖAREÖANÖINTEGRALÖPARTÖOFÖTHESEÖÙNANCIALÖSTATEMENTÖ


)NTHOUSANDOF,EONES53$Ă˜

Balance at 31 December 2011

Transfer from owners, recorded directly in equity $ONORĂ–FUNDĂ–RECEIVEDĂ–DURINGĂ–THEĂ–YEARĂ– 4RANSFERĂ–FROMĂ–GRANTĂ–RECEIVEDĂ–INĂ–ADVANCEĂ– #ONVENIENCEĂ–TRANSLATIONĂ–EFFECT

Total comprehensive income

Balance at 1 January 2011 Loss for the year Other comprehensive income &AIRĂ–VALUEĂ–RESERVEĂ–

Balance at 31 December 2010Ă–

Transfer from owners, recorded directly in equity $ONORĂ–FUNDĂ–RECEIVEDĂ–DURINGĂ–THEĂ–YEARĂ–

Total comprehensive incomeĂ–

"ALANCEÖATÖÖ*ANUARYÖÖ 0ROÙTÖFORÖTHEÖYEARÖ Other comprehensive income &AIRÖVALUEÖRESERVEÖ

Share B@OHS@KĂ˜

Donated $PTHSXĂ˜

Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă– Ă– Ă– Ă–

Donor ETMCRĂ˜

Retained D@QMHMFRĂ˜   Ă–  Ă–

3NS@KĂ˜   Ă–  Ă–

42#   

3,685,074

4HEÖNOTESÖAREÖANÖINTEGRALÖPARTÖOFÖTHESEÖÙNANCIALÖSTATEMENTS

709,750 (3,685,074)

-

709,750 -

162 (360) _______________________________________________________________________________________________________ 12,244,890 709,750 3,685,074 (1,308,755) 15,330,959 3,520 _______________________________________________________________________________________________________

-

Ă– Ă– Ă– Ă– Ă– _______________________________________________________________________________________________________ (3,079,000) (3,079,000) (707) _______________________________________________________________________________________________________

Ă–   Ă–Ă–Ă– Ă– Ă–   Ă–  _______________________________________________________________________________________________________   Ă–   Ă– Ă–   Ă–   Ă–   _______________________________________________________________________________________________________ 12,244,890 3,685,074 1,770,245 17,700,209 4,425 (3,079,000) (3,079,000) (707)

Ă– Ă– Ă– Ă– Ă– Ă– _______________________________________________________________________________________________________ Ă– Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă– Ă– Ă–  Ă–  Ă– _______________________________________________________________________________________________________

  Ă– Ă–Ă– Ă–

for the year ended 31 December 2011

BRAC MICROFINANCE (SL) LIMITED 2S@SDLDMSĂ˜NEĂ˜BG@MFDRĂ˜HMĂ˜DPTHSXĂ˜


BRAC MICROFINANCE (SL) LIMITED 2S@SDLDMSØNEØB@RGØÛNV for the year ended 31 December 2011 Le )NTHOUSANDSOF,EONES53$ #ASHÖÚOWÖFROMÖOPERATINGÖACTIVITIESÖÖÖÖÖÖÖÖÖÖÖ Loan disbursement Loan collection )NTERESTÖRECEIVABLEÖWRITE OFFÖ

USD

Notes

2011

2010

2011

2010

ÖÖ

(2,356,844)Ö (18,794,400)Ö 15,526,270Ö (68,490) __________ (5,693,464)Ö __________

  Ö    Ö   Ö __________    Ö __________

(541) (4,316)Ö 3,565Ö (16) _______ (1,308)Ö _______

(60)     _____   _____

(317,436)Ö (101,846)Ö _________ (419,282)Ö _________

  Ö   Ö _________   Ö _________

(73)Ö (23) _____ (96) _____

 (20) _____ (117) _____

399,753 388,052Ö 112,266 (2,975,324)Ö 3,685,074 _________ 1,609,821Ö _________

  Ö   Ö _________   Ö _________

92 89Ö 26 (683) Ö 846 _____ 370Ö _____

ÖÖÖÖÖÖ _____   _____

(4,502,925)Ö

 Ö

(1034)

Ö

Ö

(220)

-

  Ö __________   Ö ========

2,703Ö _____ 1,449Ö ====

  _____   ====

Ö

-DSØB@RGØÛNVØEQNLØNODQ@SHMFØ@BSHUHSHDR "@RGØÛNVØEQNLØHMUDRSHMFØ@BSHUHSHDR !CQUISITIONÖOFÖÙXEDÖASSETSÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖ Short term deposit

ÖÖÖ

-DSØB@RGØÛNVØEQNLØHMUDRSHMFØ@BSHUHSHDR

"@RGØÛNVRØEQNLØÚM@MBHMFØ@BSHUHSHDRØ Loans Loan security fund Loan security fund write off Donor fund increase/(decrease) Donated equity -DSØB@RGØEQNLØÚM@MBHMFØ@BSHUHSHDR

Net decrease in cash and cash equivalents %FFECTÖOFÖEXCHANGEÖRATEÖÚUCTUATION ONÖCASHÖANDÖCASHÖEQUIVALENTÖ

Ö

#ASHÖANDÖCASHÖEQUIVALENTSÖATÖÖ*ANUARYÖÖ

Ö

Cash and cash equivalents at 31 December 2011

12

10,813,580ÖÖÖÖÖÖ __________ 6,310,655Ö ========

4HEÖNOTESÖAREÖANÖINTEGRALÖPARTÖOFÖTHESEÖÙNANCIALÖSTATEMENTS

ÖÖ

47


BRAC MICROFINANCE (SL) LIMITED -NSDRØSNØSGDØÚM@MBH@KØRS@SDLDMSR for the year ended 31 December 2011

 Ø

1DONQSHMFØDMSHSX

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4HESEÖÙNANCIALÖSTATEMENTSÖHAVEÖBEENÖPREPAREDÖINÖACCORDANCEÖWITHÖNOTEÖÖOFÖTHESEÖÙNANCIALÖSTATEMENT

(b)

Basis of measurement

Ö

4HEÖÙNANCIALÖSTATEMENTSÖHAVEÖBEENÖPREPAREDÖONÖTHEÖHISTORICALÖCOSTÖBASISÖ

(c)

Fundamental and presentation currency

Ö

)TEMSÖINCLUDEDÖINÖTHEÖÙNANCIALÖSTATEMENTSÖAREÖMEASUREDÖUSINGÖTHEÖCURRENCYÖOFÖTHEÖPRIMARYÖECONOMICÖENVIRONMENTÖINÖWHICHÖTHEÖCOMPANYÖOPERATESÖ THEÖFUNCTIONALÖCURRENCY ÖÖ4HEÖÙNANCIALÖSTATEMENTSÖAREÖPRESENTEDÖINÖ,EONESÖANDÖDOLLARS ÖWHICHÖAREÖTHEÖORGANISATIONlSÖFUNCTIONALÖANDÖPRESENTATIONÖ currencies.

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2HFMHÚB@MSØ@BBNTMSHMFØONKHBHDR 4HEÖACCOUNTINGÖPOLICIESÖSETÖOUTÖBELOWÖHAVEÖBEENÖAPPLIEDÖCONSISTENTLYÖTOÖALLÖPERIODSÖPRESENTEDÖINÖTHESEÖÙNANCIALÖSTATEMENTSÖÖ Ø@Ø %NQDHFMØBTQQDMBX Ø

%NQDHFMØBTQQDMBXØSQ@MR@BSHNMRØ@MCØBNMUDQRHNMR Transactions in foreign currencies are translated to the functional currency at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currency at the exchange rate at that date. &OREIGNÖCURRENCYÖDIFFERENCESÖARISINGÖONÖRETRANSLATIONÖAREÖRECOGNISEDÖINÖPROÙTÖORÖLOSSÖASÖOTHERÖCOMPREHENSIVEÖINCOME


BRAC MICROFINANCE (SL) LIMITED -NSDRØSNØSGDØÚM@MBH@KØRS@SDLDMSR for the year ended 31 December 2011

Ø Ø

-NSDRØSNØSGDØÚM@MBH@KØRS@SDLDMSRØBNMSHMTDC 2HFMHÚB@MSØ@BBNTMSHMFØONKHBHDRØBNMSHMTDC AØ

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(c)

Other income

Ö

/THERÖINCOMEÖCOMPRISESÖFOREIGNÖEXCHANGEÖCURRENCYÖGAINÖANDÖBANKÖINTERESTÖÖ!LLÖREALISEDÖFOREIGNÖEXCHANGEÖGAINÖANDÖLOSSESÖAREÖRECOGNIZEDÖINÖTHEÖPROÙTÖ ANDÖLOSSÖFORÖTHEÖPERIOD ÖWHILSTÖALLÖUNREALISEDÖFOREIGNÖEXCHANGEÖGAINSÖANDÖLOSSESÖAREÖSHOWNÖASÖOTHERÖCOMPREHENSIVEÖINCOME ÖAFTERÖARRIVINGÖATÖTHEÖPROÙTÖORÖ loss for the period. Unrealised foreign exchange gains and losses are not included in the computation of the tax expense for the period.

(d)

Fees and commission income

Ö

-EMBERSHIPÖFEESÖANDÖOTHERÖCHARGESÖAREÖRECOGNISEDÖONÖANÖACCRUALÖBASISÖWHENÖTHEÖSERVICEÖHASÖBEENÖPROVIDEDÖ

(e)

Administrative expenses

Ö

!DMINISTRATIVEÖEXPENSESÖCOMPRISEÖEXPENSESÖRELATINGÖTOÖADMINISTRATIVEÖSTAFFÖANDÖMANAGEMENT ÖINCLUDINGÖOFÙCEÖEXPENSES ÖSALARIESÖANDÖDEPRECIATIONÖASÖ well as other indirect costs.

(f)

Cash and cash equivalents

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#ASHÖANDÖCASHÖEQUIVALENTSÖINCLUDEÖNOTESÖANDÖCOINSÖONÖHAND ÖBALANCESÖWITHÖOTHERÖBANKSÖANDÖUNPLEDGEDÖÙXEDÖDEPOSITSÖWITHÖORIGINALÖMATURITIESÖOFÖLESSÖ THANÖTHREEÖMONTHS ÖWHICHÖAREÖSUBJECTÖTOÖINSIGNIÙCANTÖRISKÖOFÖCHANGESÖINÖTHEIRÖVALUEÖANDÖAREÖUSEDÖBYÖTHEÖCOMPANYÖINÖTHEÖMANAGEMENTÖOFÖITSÖSHORT TERMÖ COMMITMENTSÖ#ASHÖANDÖCASHÖEQUIVALENTSÖAREÖCARRIEDÖATÖAMORTIZEDÖCOSTÖINÖTHEÖBALANCEÖSHEET

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1DBNFMHSHNMØ@MCØLD@RTQDLDMS Items of operating assets are measured at cost less accumulated depreciation and impairment losses. Cost includes expenditures that are DIRECTLYÖATTRIBUTABLEÖTOÖTHEÖACQUISITIONÖOFÖTHEÖASSETSÖÖ4HEÖCOSTÖOFÖSELFÖCONSTRUCTEDÖASSETSÖINCLUDESÖTHEÖCOSTÖOFÖMATERIALSÖANDÖDIRECTÖLABOUR ÖANYÖOTHERÖ COSTSÖDIRECTLYÖATTRIBUTABLEÖTOÖBRINGINGÖTHEÖASSETSÖTOÖAÖWORKINGÖCONDITIONÖFORÖITSÖINTENDEDÖUSE ÖANDÖTHEÖCOSTÖOFÖDISMANTLINGÖANDÖREMOVINGÖTHEÖITEMSÖ and restoring the site on which they are located. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.

Ö

7HENÖPARTSÖOFÖANÖITEMÖOFÖPROPERTY ÖPLANTÖANDÖEQUIPMENTÖHAVEÖDIFFERENTÖUSEFULÖLIVES ÖTHEYÖAREÖACCOUNTEDÖFORÖASÖSEPARATEÖITEMSÖMAJORÖCOMPONENTS Ö OFÖPROPERTY ÖPLANTÖANDÖEQUIPMENT


BRAC MICROFINANCE (SL) LIMITED -NSDRØSNØSGDØÚM@MBH@KØRS@SDLDMSR for the year ended 31 December 2011 Ø

-NSDRØSNØSGDØÚM@MBH@KØRS@SDLDMSRØBNMSHMTDC

Ø

2HFMHÚB@MSØ@BBNTMSHMFØONKHBHDRØBNMSHMTDC (ii)

Subsequent costs

Ö

4HEÖCOSTÖOFÖREPLACINGÖPARTÖOFÖANÖITEMÖOFÖPROPERTY ÖPLANTÖANDÖEQUIPMENTÖISÖRECOGNISEDÖINÖTHEÖCARRYINGÖAMOUNTÖOFÖTHEÖITEMÖIFÖITÖISÖPROBABLEÖTHATÖ THEÖFUTUREÖECONOMICÖBENEÙTSÖEMBODIEDÖWITHINÖTHEÖPARTÖWILLÖÚOWÖTOÖTHEÖORGANISATIONlSÖANDÖITSÖCOSTÖCANÖBEÖMEASUREDÖRELIABLYÖÖ4HEÖCOSTÖOFÖ THEÖDAY TO DAYÖSERVICINGÖOFÖPROPERTY ÖPLANTÖANDÖEQUIPMENTÖAREÖRECOGNISEDÖINÖPROÙTÖORÖLOSSÖASÖINCURRED

(iii)

Depreciation

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$EPRECIATIONÖISÖRECOGNISEDÖINÖPROÙTÖORÖLOSSÖONÖAÖSTRAIGHT LINEÖBASISÖOVERÖTHEÖESTIMATEDÖUSEFULÖLIVESÖOFÖEACHÖPARTÖOFÖANÖITEMÖOFÖPROPERTY ÖPLANTÖ ANDÖEQUIPMENTÖÖ,EASEHOLDÖASSETSÖAREÖDEPRECIATEDÖOVERÖTHEÖSHORTERÖOFÖTHEÖLEASEÖTERMÖANDÖTHEIRÖUSEFULÖLIVESÖÖ,ANDÖISÖNOTÖDEPRECIATED

Ö

4HEÖESTIMATEDÖUSEFULÖLIVESÖFORÖTHEÖCURRENTÖANDÖCOMPARATIVEÖPERIODSÖAREÖASÖFOLLOWS

Ö Ö Ö Ö

-OTORÖ6EHICLES#YCLESÖ #OMPUTERÖEQUIPMENTÖ &URNITUREÖANDÖÙTTINGSÖ %QUIPMENTÖ

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!SSETSÖRESIDUALÖVALUEÖANDÖUSEFULÖLIVESÖAREÖREVIEWEDÖANDÖADJUSTED ÖIFÖAPPROPRIATEÖATÖEACHÖBALANCEÖSHEETÖDATE

(iii)

Disposals

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'AINSÖORÖLOSSESÖONÖTHEÖDISPOSALÖORÖSCRAPPINGÖOFÖPROPERTY ÖPLANTÖANDÖEQUIPMENTÖAREÖDETERMINEDÖASÖTHEÖDIFFERENCEÖBETWEENÖTHEÖSALESÖPRICEÖ less the cost of dismantling selling and re-assembly of the assets and the carrying amount. Any gains or losses are recognised in the INCOMEÖSTATEMENTÖASÖOTHERÖOPERATINGÖINCOMEÖORÖOTHERÖEXPENSESÖRESPECTIVELY

(h)

Financial assets

Rates Ö Ö Ö Ö

Useful lives Ö Ö Ö Ö

ÖYEARS ÖYEARS ÖYEARS ÖYEARS

Loans and advances to Customers

A ÖÖ

,OANSÖORIGINATEDÖBYÖTHEÖCOMPANYÖBYÖPROVIDINGÖÙNANCEÖDIRECTLYÖTOÖBORROWERS ÖISÖCATEGORIZEDÖASÖLOANSÖTOÖGROUPÖMEMBERSÖANDÖISÖCARRIEDÖ ATÖAMORTISEDÖCOST ÖWHICHÖISÖDEÙNEDÖASÖFAIRÖVALUEÖOFÖCASHÖCONSIDERATIONÖGIVENÖTOÖORIGINATEÖTHOSEÖLOANSÖASÖISÖDETERMINABLEÖBYÖREFERENCEÖTOÖ MARKETÖPRICESÖATÖORIGINATIONÖDATEÖANDÖSUBSEQUENTLYÖMEASUREDÖATÖTHEÖORIGINALÖEFFECTIVEÖINTERESTÖRATEÖATÖREPORTINGÖDATEÖ!LLÖLOANSÖANDÖADVANCESÖ AREÖRECOGNIZEDÖWHENÖCASHÖISÖADVANCEDÖTOÖBORROWERS

ÖB Ö

"2!#Ö-ICROÙNANCEÖ3, Ö,IMITEDÖGENERALLYÖPROVIDESÖFORÖANÖALLOWANCEÖFORÖLOANÖIMPAIRMENTÖATÖÖOFÖLOANÖDISBURSEMENTSÖMADEÖ-ANAGEMENTÖ REGULARLYÖASSESSÖTHEÖADEQUACYÖOFÖALLOWANCEÖFORÖIMPAIRMENTÖBASEDÖONÖTHEÖAGEÖOFÖTHEÖLOANÖPORTFOLIOÖ!TÖYEARÖENDÖ"2!#Ö-ICROÙNANCEÖ3, Ö ,IMITEDÖCALCULATEÖTHEÖREQUIREDÖPROVISIONÖFORÖLOANÖLOSSESÖBASEDÖONÖLOANÖCLASSIÙCATIONÖANDÖPROVISIONINGÖMETHODOLOGYÖWHICHÖISÖSHOWNÖBELOWÖ ANDÖANYÖADJUSTMENT ÖIFÖREQUIREDÖAREÖMADEÖANDÖACCOUNTEDÖFORÖINÖTHEÖÙNANCIALÖSTATEMENTÖFORÖTHEÖYEAR


BRAC MICROFINANCE (SL) LIMITED -NSDRØSNØSGDØÚM@MBH@KØRS@SDLDMSR for the year ended 31 December 2011 Ø

-NSDRØSNØSGDØÚM@MBH@KØRS@SDLDMSRØBNMSHMTDC

Ø

2HFMHÚB@MSØ@BBNTMSHMFØONKHBHDRØBNMSHMTDC Ö

,OANÖCLASSIÙCATIONÖ

Ö Ö Ö Ö

Standard 7ATCHÖLISTÖ 3UBSTANDARDÖ $OUBTFULÖ ,OSSÖ

$AYSÖINÖ!RREARÖ No arrear  Ö  Ö  Ö  Ö

0ROVISIONÖREQUIRED 2%    

c)

Loans within the maturity period is considered “Current Loans”. Loans which remains outstanding after the expiry of their maturity period are CONSIDEREDÖASÖm,ATEÖ,OANSÖ,ATEÖLOANSÖWHICHÖREMAINÖUNPAIDÖAFTERÖONEÖYEARÖBEINGÖCLASSIÙEDÖAREÖCONSIDEREDÖASÖm.ONÖ)NTERESTÖBEARINGÖLOANSnÖ .)", ÖANDÖISÖREFERREDÖTOÖTHEÖ"OARDÖTOÖWRITEÖOFFÖ!PARTÖFROMÖTHATÖANYÖLOANSÖCANÖBEÖWRITTENÖOFFÖSUBJECTÖTOÖTHEÖAPPROVALÖOFÖTHEÖBOARDÖWHEREÖTHEÖ BOARDÖTHINKSÖTHATÖITÖISÖNOTÖREALIZABLEÖDUEÖTOÖDEATH ÖDISLOCATIONÖOFÖTHEÖBORROWERÖORÖANYÖOTHERÖNATURALÖORÖHUMANITARIANÖDISASTERÖTHATÖAFFECTSÖTHEÖ LIVELIHOODÖOFÖTHEÖBORROWERSÖ3UBSEQUENTÖRECOVERIESÖAREÖCREDITEDÖASÖINCOMEÖINÖTHEÖSTATEMENTÖOFÖCOMPREHENSIVEÖINCOME

HØ

(LO@HQLDMSØNEØÚM@MBH@KØ@RRDSR

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4HEÖORGANISATIONÖASSESSESÖATÖEACHÖBALANCEÖSHEETÖDATEÖWHETHERÖTHEREÖISÖOBJECTIVEÖEVIDENCEÖTHATÖAÖÙNANCIALÖASSETÖORÖGROUPÖOFÖÙNANCIALÖASSETSÖ ISÖIMPAIREDÖÖ!ÖÙNANCIALÖASSETÖORÖAÖGROUPÖOFÖÙNANCIALÖASSETSÖISÖIMPAIREDÖANDÖIMPAIRMENTÖLOSSESÖAREÖINCURREDÖIF ÖANDÖONLYÖIF ÖTHEREÖISÖOBJECTIVEÖ EVIDENCEÖOFÖIMPAIRMENTÖASÖAÖRESULTÖOFÖONEÖORÖMOREÖEVENTSÖTHATÖOCCURREDÖAFTERÖTHEÖINITIALÖRECOGNITIONÖOFÖTHEÖASSETÖAÖkLOSSÖEVENTl ÖANDÖTHATÖLOSSÖ EVENTÖORÖEVENTS ÖHASÖANÖIMPACTÖONÖTHEÖESTIMATEDÖFUTUREÖCASHÖÚOWSÖOFÖTHEÖÙNANCIALÖASSETÖORÖGROUPÖOFÖÙNANCIALÖASSETSÖTHATÖCANÖBEÖRELIABLYÖ ESTIMATEDÖÖ/BJECTIVEÖEVIDENCEÖTHATÖAÖÙNANCIALÖASSETÖORÖGROUPÖOFÖASSETSÖISÖIMPAIREDÖINCLUDESÖOBSERVABLEÖDATAÖTHATÖCOMESÖTOÖTHEÖATTENTIONÖOFÖ THEÖORGANISATIONÖABOUTÖTHEÖFOLLOWINGÖLOSSÖEVENTS

Ö Ö

I ÖÖ3IGNIÙCANTÖÙNANCIALÖDIFÙCULTYÖOFÖTHEÖISSUERÖORÖOBLIGOR

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Ö

4HEÖORGANISATIONÖÙRSTÖASSESSESÖWHETHERÖOBJECTIVEÖEVIDENCEÖOFÖIMPAIRMENTÖEXISTSÖINDIVIDUALLYÖANDÖCOLLECTIVELYÖ)FÖTHEÖORGANISATIONÖDETERMINESÖ THATÖNOÖOBJECTIVEÖEVIDENCEÖOFÖIMPAIRMENTÖEXISTSÖFORÖANÖINDIVIDUALLYÖASSESSEDÖÙNANCIALÖASSET ÖWHETHERÖSIGNIÙCANTÖORÖNOT ÖITÖINCLUDESÖTHEÖASSETÖ INÖAÖGROUPÖOFÖÙNANCIALÖASSETSÖWITHÖSIMILARÖCREDITÖRISKÖCHARACTERISTICSÖANDÖCOLLECTIVELYÖASSESSESÖTHEMÖFORÖIMPAIRMENTÖÖ

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)F ÖINÖAÖSUBSEQUENTÖPERIOD ÖTHEÖAMOUNTÖOFÖTHEÖIMPAIRMENTÖLOSSÖDECREASESÖANDÖTHEÖDECREASEÖCANÖBEÖRELATEDÖOBJECTIVELYÖTOÖANÖEVENTÖOCCURRINGÖ AFTERÖTHEÖIMPAIRMENTÖWASÖRECOGNISEDÖSUCHÖASÖANÖIMPROVEMENTÖINÖTHEÖDEBTORlSÖCREDITÖRATING ÖTHEÖPREVIOUSLYÖRECOGNISEDÖIMPAIRMENTÖLOSSÖISÖ REVERSEDÖBYÖADJUSTINGÖTHEÖALLOWANCEÖACCOUNTÖ4HEÖAMOUNTÖOFÖTHEÖREVERSALÖISÖRECOGNISEDÖINÖTHEÖINCOMEÖSTATEMENT


BRAC MICROFINANCE (SL) LIMITED -NSDRØSNØSGDØÚM@MBH@KØRS@SDLDMSR for the year ended 31 December 2011

Ø

-NSDRØSNØSGDØÚM@MBH@KØRS@SDLDMSRØBNMSHMTDC

Ø

2HFMHÚB@MSØ@BBNTMSHMFØONKHBHDRØBNMSHMTDC (j)

Provisions

Ö

0ROVISIONSÖFORÖLEGALÖCLAIMSÖAREÖRECOGNISEDÖWHENÖTHEÖORGANISATIONÖHASÖAÖPRESENTÖLEGALÖORÖCONSTRUCTIVEÖOBLIGATIONÖASÖAÖRESULTÖOFÖPASTÖEVENTSÖANDÖ ITÖISÖMOREÖLIKELYÖTHANÖNOTÖTHATÖANÖOUTÚOWÖOFÖRESOURCESÖWILLÖBEÖREQUIREDÖTOÖSETTLEÖTHEÖOBLIGATIONÖANDÖTHEÖAMOUNTÖHASÖBEENÖRELIABLYÖESTIMATEDÖÖ 0ROVISIONSÖAREÖNOTÖRECOGNISEDÖFORÖFUTUREÖOPERATINGÖLOSSES

Ö

7HEREÖTHEREÖAREÖAÖNUMBERÖOFÖSIMILARÖOBLIGATIONS ÖTHEÖLIKELIHOODÖTHATÖANÖOUTÚOWÖWILLÖBEÖREQUIREDÖINÖSETTLEMENTÖISÖDETERMINEDÖBYÖCONSIDERINGÖTHEÖ CLASSÖOFÖOBLIGATIONSÖASÖAÖWHOLEÖÖ!ÖPROVISIONÖISÖRECOGNISEDÖEVENÖIFÖTHEÖLIKELIHOODÖOFÖANÖOUTÚOWÖWITHÖRESPECTÖTOÖANYÖONEÖITEMÖINCLUDEDÖINÖTHEÖSAMEÖ class of obligations may be small.

(k)

Loan security deposit BRAC accepts 10% of the loan disbursed amount to customers as collateral. This amount is being refunded to customers when they retire or are terminated from membership. It is interest free.

(l)

Inventories

Ö

)NVENTORIESÖAREÖSTATEDÖATÖCOSTÖBASEDÖONÖSELLINGÖPRICEÖLESSÖAVERAGEÖMARK UP ÖANDÖOTHERÖINVENTORIESÖAREÖSTATEDÖATÖCOSTÖ#OSTÖISÖDETERMINEDÖUSINGÖ THEÖWEIGHTEDÖAVERAGEÖBASISÖÖ4HEÖCOSTÖOFÖINVENTORIESÖINCLUDESÖEXPENDITUREÖINCURREDÖINÖACQUIRINGÖTHEÖINVENTORIESÖANDÖBRINGINGÖTHEMÖTOÖTHEIRÖ EXISTINGÖLOCATIONÖANDÖCONDITIONÖÖ0ROVISIONÖISÖMADEÖFORÖOBSOLETEÖORÖSLOWÖMOVINGÖITEMS ÖTOÖREDUCEÖTHEIRÖCARRYINGÖAMOUNTSÖTOÖNETÖREALIZABLEÖVALUE

LØ $LOKNXDDØADMDÚSØ @Ø

/DMRHNMØNAKHF@SHNMR

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4HEÖORGANISATIONÖOPERATESÖAÖDEÙNEDÖCONTRIBUTIONÖSCHEMEÖÖ!ÖDEÙNEDÖCONTRIBUTIONÖPLANÖISÖAÖPENSIONÖPLANÖUNDERÖWHICHÖTHEÖORGANISATIONlSÖ PAYSÖÙXEDÖCONTRIBUTIONSÖINTOÖAÖSEPARATEÖENTITYÖÖ4HEÖSCHEMEÖISÖGENERALLYÖFUNDEDÖTHROUGHÖPAYMENTSÖTOÖTHEÖ.ATIONALÖ3OCIALÖ3ECURITYÖANDÖ )NSURANCEÖ4RUSTÖONÖAÖMANDATORYÖBASISÖÖ4HEÖORGANISATIONlSÖHASÖNOÖLEGALÖORÖCONSTRUCTIVEÖOBLIGATIONÖTOÖPAYÖFURTHERÖCONTRIBUTIONSÖIFÖTHEÖFUNDÖ DOESÖNOTÖHOLDÖSUFÙCIENTÖASSETSÖTOÖPAYÖALLÖEMPLOYEESÖTHEÖBENEÙTSÖRELATINGÖTOÖEMPLOYEEÖSERVICEÖINÖTHEÖCURRENTÖANDÖPRIORÖPERIODSÖÖ4HEÖ CONTRIBUTIONSÖAREÖRECOGNISEDÖASÖEMPLOYEEÖBENEÙTÖEXPENSEÖWHENÖTHEYÖAREÖDUEÖÖ0REPAIDÖCONTRIBUTIONSÖAREÖRECOGNISEDÖASÖANÖASSETÖTOÖ THEÖEXTENTÖTHATÖAÖCASHÖREFUNDÖORÖAÖREDUCTIONÖINÖTHEÖFUTUREÖPAYMENTSÖISÖAVAILABLE

AØ

3DQLHM@SHNMØADMDÚSR

Ö

4ERMINATIONÖ BENEÙTSÖ AREÖ RECOGNISEDÖ ASÖ ANÖ EXPENSEÖ WHENÖ THEÖ COMPANYÖ ISÖ DEMONSTRABLYÖ COMMITTED Ö WITHOUTÖ REALISTICÖ POSSIBILITYÖ OFÖ WITHDRAWAL ÖTOÖAÖFORMALÖDETAILEDÖPLANÖTOÖEITHERÖTERMINATEÖEMPLOYMENTÖBEFOREÖTHEÖNORMALÖRETIREMENTÖDATE ÖORÖTOÖPROVIDEÖTERMINATIONÖBENEÙTSÖ ASÖAÖRESULTÖOFÖANÖOFFERÖMADEÖTOÖENCOURAGEÖVOLUNTARYÖREDUNDANCYÖ

Ö

4ERMINATIONÖBENEÙTSÖFORÖVOLUNTARYÖREDUNDANCIESÖAREÖRECOGNISEDÖASÖANÖEXPENSEÖIFÖTHEÖ#OMPANYÖHASÖMADEÖANÖOFFERÖENCOURAGINGÖVOLUNTARYÖ REDUNDANCYÖANDÖITÖISÖPROBABLEÖTHATÖTHEÖOFFERÖWILLÖBEÖACCEPTED ÖANDÖTHEÖNUMBERÖOFÖACCEPTANCESÖCANÖBEÖESTIMATEDÖRELIABLY


BRAC MICROFINANCE (SL) LIMITED -NSDRØSNØSGDØÚM@MBH@KØRS@SDLDMSR for the year ended 31 December 2011 -NSDRØSNØSGDØÚM@MBH@KØRS@SDLDMSRØBNMSHMTDC 2HFMHÚB@MSØ@BBNTMSHMFØONKHBHDRØBNMSHMTDC ØBØ 2GNQS SDQLØADMDÚSR Ö

3HORT TERMÖEMPLOYEEÖBENEÙTÖOBLIGATIONSÖAREÖMEASUREDÖONÖANÖUNDISCOUNTEDÖBASISÖANDÖAREÖEXPENSEDÖASÖTHEÖRELATEDÖSERVICEÖISÖPROVIDED

Ö

!ÖLIABILITYÖISÖRECOGNISEDÖFORÖTHEÖAMOUNTÖEXPECTEDÖTOÖBEÖPAIDÖUNDERÖSHORT TERMÖCASHÖBONUSÖORÖPROÙT SHARINGÖPLANSÖIFÖTHEÖCOMPANYÖHASÖAÖ PRESENTÖLEGALÖORÖCONSTRUCTIVEÖOBLIGATIONÖTOÖPAYÖTHISÖAMOUNTÖASÖAÖRESULTÖOFÖPASTÖSERVICEÖPROVIDEDÖBYÖTHEÖEMPLOYEEÖANDÖTHEÖOBLIGATIONÖCANÖBEÖ estimated reliably.

(n)

Share capital Incremental costs directly attributable to the issue of an equity instruments are deducted from the initial measurement of the equity instruments.

(o)

Income tax expense

Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognised in the income statement except to THEÖEXTENTÖTHATÖITÖRELATESÖTOÖITEMSÖRECOGNISEDÖDIRECTLYÖINÖEQUITY ÖINÖWHICHÖCASEÖITlSÖRECOGNISEDÖINÖEQUITYÖORÖOTHERÖCOMPREHENSIVEÖINCOME Ö

#URRENTÖTAXÖISÖTHEÖEXPECTEDÖTAXÖPAYABLEÖONÖTHEÖTAXABLEÖINCOMEÖFORÖTHEÖYEAR ÖUSINGÖTAXÖRATESÖENACTEDÖORÖSUBSTANTIVELYÖENACTEDÖATÖTHEÖBALANCEÖ SHEETÖDATEÖANDÖANYÖADJUSTMENTÖTOÖTAXÖPAYABLEÖINÖRESPECTÖOFÖPREVIOUSÖYEARSÖ

Ö

)NCOMEÖTAXÖPAYABLEÖONÖPROÙTS ÖBASEDÖONÖTHEÖAPPLICABLEÖTAXÖLAWÖINÖ3IERRAÖ,EONEÖISÖRECOGNISEDÖASÖANÖEXPENSEÖINÖTHEÖPERIODÖINÖWHICHÖTHEÖPROÙTSÖ ARISEÖ4HEÖTAXÖEFFECTSÖOFÖINCOMEÖTAXÖLOSSESÖAVAILABLEÖFORÖCARRYINGÖFORWARDÖAREÖRECOGNISEDÖASÖANÖASSETÖWHENÖITÖISÖPROBABLEÖTHATÖFUTUREÖTAXABLEÖ PROÙTSÖWILLÖBEÖAVAILABLEÖAGAINSTÖWHICHÖTHESEÖLOSSESÖCANÖBEÖUTILISED

Ö

5NREALISEDÖEXCHANGEÖGAINSÖANDÖLOSSESÖAREÖSHOWNÖASÖPARTÖOFÖOTHERÖCOMPREHENSIVEÖINCOMEÖANDÖAREÖNOTÖSUBJECTÖTOÖTAX

Ö

!ÖDEFERREDÖTAXÖASSETÖISÖRECOGNIZEDÖFORÖUNUSEDÖTAXÖLOSSES ÖTAXÖCREDITSÖANDÖDEDUCTIBLEÖTEMPORARYÖDIFFERENCESÖTOÖTHEÖEXTENTÖTHATÖITÖISÖPROBABLEÖ THATÖFUTUREÖTAXABLEÖPROÙTSÖWILLÖBEÖAVAILABLEÖAGAINSTÖWHICHÖTHEYÖCANÖBEÖUTILIZEDÖÖ$EFERREDÖTAXÖASSETSÖAREÖREVIEWEDÖATÖEACHÖREPORTINGÖDATEÖANDÖ AREÖREDUCEDÖTOÖTHEÖEXTENTÖTHATÖITÖISÖNOÖLONGERÖPROBABLEÖTHATÖTHEÖRELATEDÖTAXÖBENEÙTÖWILLÖBEÖREALISED


BRAC MICROFINANCE (SL) LIMITED -NSDRØSNØSGDØÚM@MBH@KØRS@SDLDMSR for the year ended 31 December 2011 -NSDRØSNØSGDØÚM@MBH@KØRS@SDLDMSRØBNMSHMTDC 4.

Financial risk factors

Ö

4HEÖORGANISATIONlSÖACTIVITIESÖEXPOSEÖITÖTOÖAÖVARIETYÖOFÖÙNANCIALÖRISKS ÖINCLUDING (a)

Credit risk

Ö

4HEÖORGANISATIONlSÖTAKESÖONÖEXPOSURESÖTOÖCREDITÖRISK ÖWHICHÖISÖTHEÖRISKÖTHATÖAÖCLIENTÖMAYÖBEÖUNABLEÖTOÖPAYÖAMOUNTSÖINÖFULLÖWHENÖDUEÖÖ#REDITÖRISKÖISÖ managed by obtaining moral guarantee from group members to bear responsibility for repayment of both principal and interest amount when they AREÖDUEÖÖ!LLÖREPAYMENTSÖAREÖMADEÖINÖGROUPSÖANDÖNOTÖINDIVIDUALLYÖÖ)MPAIRMENTÖPROVISIONSÖAREÖPROVIDEDÖFORÖLOSSESÖTHATÖMAYÖHAVEÖBEENÖINCURREDÖATÖTHEÖ balance sheet date. Management therefore carefully manages its exposure to credit risk.

Ö

!LLÖCLIENTSÖDEPENDINGÖONÖTHEÖTYPEÖOFÖLOANÖMAKESÖCASHÖCOLLATERALÖSAVINGSÖANDÖTHISÖCANÖALSOÖBEÖUSEDÖTOÖOFFSETÖOUTSTANDINGÖLOANÖAMOUNTSÖDUEÖÖ!ÖTENÖ PERCENTÖSAVINGSÖISÖMADEÖFORÖALLÖLOANS

(b)

Liquidity risk

ÖÖ

Ö0RUDENTÖLIQUIDITYÖRISKÖMANAGEMENTÖIMPLIESÖMAINTAININGÖSUFÙCIENTÖCASHÖANDÖMARKETABLEÖSECURITIES ÖANDÖTHEÖAVAILABILITYÖOFÖFUNDINGÖTHROUGHÖANÖADEQUATEÖ AMOUNTÖOFÖCOMMITTEDÖCREDITÖFACILITIESÖÖ4HEÖORGANISATIONlSÖMANAGESÖTHISÖRISKÖBYÖMAINTAININGÖSUFÙCIENTÖCASH ÖANDÖINVESTINGÖANYÖEXCESSÖCASHÖOVERÖITSÖ anticipated requirements.

(b)

Market risks

Ö

-ARKETÖRISKÖISÖTHEÖRISKÖTHATÖCHANGESÖINÖMARKETÖPRICE ÖSUCHÖASÖINTERESTÖRATE ÖEQUITYÖPRICES ÖFOREIGNÖEXCHANGEÖRATESÖANDÖCREDITÖSPREADSÖNOTÖRELATINGÖTOÖ CHANGESÖINÖTHEÖOBLIGORlSISSUERlSÖCREDITÖSTANDING ÖWILLÖAFFECTÖTHEÖORGANISATIONlSÖINCOMEÖORÖTHEÖVALUEÖOFÖITSÖHOLDINGSÖOFÖÙNANCIALÖINSTRUMENTSÖ4HEÖOBJECTIVEÖ OFÖMARKETÖRISKÖMANAGEMENTÖISÖTOÖMANGEÖANDÖCONTROLÖMARKETÖÖÖRISKÖEXPOSURESÖWITHINÖACCEPTABLEÖPARAMETERS ÖWHILEÖOPTIMIZINGÖTHEÖRETURNÖONÖRISK

 Ø

2DQUHBDØBG@QFDØNMØKN@MØØØØ



)NTHOUSANDSOF,EONES53$

Ö

'ROUPÖLOANÖ-ICROÙNANCE Ö Small enterprises program

6.

Membership fees and other income

ØØØØØØØØØØØØØØØØØØØØØ

ØØØØ

Ø

Ø

Le

Ö

USD

2011

2010

2011

2010

3,624,473Ö 633,921Ö _________ 4,258,394Ö ========

  Ö  Ö _________   Ö ========

832 146 ____ 978Ö ====

760 27 ___  ===

2011

2010

2011

2010

187,944Ö 115,338Ö 5,283Ö ________ 308,565Ö =======

 Ö  Ö  Ö ________  Ö =======

43 26 2 ____ 71Ö ====

27 32 ____  ====

Le )NTHOUSANDSOF,EONES53$ Loan appraisal fees Membership fees Loan application fees

USD


BRAC MICROFINANCE (SL) LIMITED -NSDRĂ˜SNĂ˜SGDĂ˜ĂšM@MBH@KĂ˜RS@SDLDMSR for the year ended 31 December 2011 -NSDRĂ˜SNĂ˜SGDĂ˜ĂšM@MBH@KĂ˜RS@SDLDMSRĂ˜BNMSHMTDC 7.

Other income Le )NTHOUSANDSOF,EONES53$ Realised foreign exchange gain Bank interest Gain on early payment Unrealised exchange gain Interest on short term deposit

8.

USD

2011

2010

2011

2010

187,964Ă– 2,794Ă– 74,036Ă– 87,964Ă– 101,846Ă– ________ 454,604Ă– =======

 Ă–  Ă–  Ă–  Ă–  Ă– _________   Ă– =======

43Ă– 1 17Ă– 20Ă– 23 _____ 104Ă– ====

 4   21 _____  =====

2011

2010

2011

2010

375,888Ă– 583,361 ________ 959,249Ă– =======

 Ă– ________  Ă– =======

86 134 ____ 220 ====

73 ____ 73 =====

2011

2010

2011

2010

3,789,339Ă– ========

  Ă– ========

870Ă– =====

 ======

2011

2010

2011

2010

424,473Ă– 238,187Ă– 57,595Ă– 1,006,850Ă– 83,545Ă– 904,928Ă– 499,077Ă– _________ 3,214,655Ă– ========

 Ă–  Ă–  Ă–  Ă–  Ă–  Ă–  Ă– _________   Ă– ========

97 55Ă– 13 232Ă– 19 208Ă– 115 ____ 739Ă– ====

131  11  14  71 _______  ======

2011

2010

2011

2010

274,867Ă– 149,606Ă– ________ 424,473Ă– =======

 Ă–  Ă– ________  Ă– =======

63 34 ____ 97 ====

104 27 _______ 131 ======

Impairment losses on loans )NTHOUSANDSOF,EONES53$

Ă– Ă–

'ENERALÖPROVISIONÖ 3PECIÙCÖPROVISIONÖ

9.

Staff cost

Ă– Ă–

)NTHOUSANDSOF,EONES53$ Staff cost

 Ă˜ .SGDQĂ˜NODQ@SHMFĂ˜BNRSRĂ˜ )NTHOUSANDSOF,EONES53$

Ă–

Ă– Ă– Ă–

Occupancy expenses 0RINTINGÖANDÖOFÙCEÖSTATIONERYÖ Audit fees Maintenance and general expenses 3TAFFÖTRAININGÖDEVELOPMENTÖ 4RANSPORTATIONÖANDÖTRAVELLINGÖ (EADÖOFÙCEÖANDÖLOGISTICÖCOSTSÖ

10.1 Occupancy expenses are analysed as follows )NTHOUSANDSOF,EONES53$ Rent Utilities

Ă–

Ă– Ă– Ă–


BRAC MICROFINANCE (SL) LIMITED -NSDRĂ˜SNĂ˜SGDĂ˜ĂšM@MBH@KĂ˜RS@SDLDMSR for the year ended 31 December 2011 -NSDRĂ˜SNĂ˜SGDĂ˜ĂšM@MBH@KĂ˜RS@SDLDMSRĂ˜BNMSHMTDC 11.

Taxation (a) Tax expense

Ă˜

1DBNFMHRDCĂ˜HMĂ˜SGDĂ˜HMBNLDĂ˜RS@SDLDMS Le )NTHOUSANDSOF,EONES53$.OTES

2011

Income tax expense Deferred tax charge

USD 2010  Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–  Ă– ______  Ă– ======

-Ă– 18,251Ă– _______ 18,251Ă– ======

2011

2010

4 ____ 4 ===

13 7 ___ 20 ===

(b) Income tax account Le 

)NTHOUSANDSOF,EONES53$

2011

Opening balance Corporation tax charge Payment during the period

(53,147) -Ă– 30,150 ________ (22,997)Ă– =======

Payment made during the period

Reconciliation of effective tax rate )NTHOUSANDSOF,EONES53$

2010

  Ă– _______   Ă–Ă–Ă– ======

(13) 7 ___ (6) ===

(13) ___ (13) ===

(3,069,749)Ă– _________ (920,925)Ă–

Income tax on loss before tax Tax impact of permanent difference: Non deductible expenses 4AXĂ–INCENTIVESĂ– Deferred tax asset not recognised

Ă–

(c).

Deferred tax asset and liabilities

Ă˜

1DBNFMHRDCĂ˜CDEDQQDCĂ˜S@WĂ˜@RRDSĂ˜@MCĂ˜KH@AHKHSHDRĂ˜

Property plant and equipment Impairment allowance Tax loss carry forward Deferred tax asset not recognized

2011

2011

Loss before income tax

Ă–

USD 2010

(19,046)Ă– 958,222Ă– _______ 18,251Ă– ======

Ă–

Asset

2011 liability

Net

(283,340) (785,122)

62,676 -

62,676Ă– (283,340)Ă– (785,122)

1,068,462 1,068,462Ă– __________________________________________ 62,676 62,676Ă– ===================================

Asset

Ă–Ă–   Ă–Ă–Ă–Ă– -

2010 Ă– Ă–

Ă– Ă– Ă–

  _______  

   Ă– ______   ======

2010 liability

 Ă–Ă–Ă–Ă–Ă–Ă– Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă– -

Net

    -

 Ă– Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–   ______________________________________ Ă–Ă–  Ă–   ================================


BRAC MICROFINANCE (SL) LIMITED -NSDRØSNØSGDØÚM@MBH@KØRS@SDLDMSR for the year ended 31 December 2011 -NSDRØSNØSGDØÚM@MBH@KØRS@SDLDMSRØBNMSHMTDC Ø

,NUDLDMSØHMØSDLONQ@QXØCHEEDQDMBDRØCTQHMFØSGDØXD@QØ Ø

Ø Ø

Ø Ø

Ø Ø

0ROPERTY ÖPLANTÖANDÖ equipment Impairment allowance Tax loss carry forward Deferred tax asset not recognised

,NUDLDMSØHMØSDLONQ@QXØCHEEDQDMBDRØCTQHMFØSGDØXD@QØpØ Ø Ø

Ö Ö Ö Ö Ö

0ROPERTY ÖPLANTÖ ANDÖEQUIPMENTÖ )MPAIRMENTÖALLOWANCEÖ 4AXÖLOSSÖCARRYÖFORWARDÖ Deferred tax asset not RECOGNISEDÖ

Ö

Ö



)NTHOUSANDSOF,EONES53$

18,251 (173,100) (785,122)

1DBNFMHRDCØ HMØDPTHSXØ

"KNRHMF A@K@MBD

-

62,676 (283,340) (785,122)

110,240 958,222 1,068,462 _____________________________________________________ 44,425 18,251 62,676 =============================================

Ø Ø

Cash and bank balance

1DBNFMHRDCØHMØØ OQNÚSØ@MCØKNRRØ

44,425 (110,240) -

Ø

12.

.ODMHMFØ A@K@MBDØ

Ø Ø

Ö Ö Ö Ö Ö

.ODMHMFØ A@K@MBDØ

1DBNFMHRDCØHMØØ OQNÚSØ@MCØKNRRØ

 ÖÖÖÖ   ÖÖ   ÖÖÖÖ

1DBNFMHRDCØ HMØDPTHSXØ

 ÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖ ÖÖÖÖ   Ö ÖÖÖÖÖÖÖÖÖÖÖ ÖÖÖÖ  Ö ÖÖÖÖ

13.

   

 ÖÖÖÖ  Ö ÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖ ÖÖÖÖ   _____________________________________________________  ÖÖÖÖ  ÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖ ÖÖÖÖ   =============================================

Le

Cash at bank Cash in hand

"KNRHMF A@K@MBD

USD

2011

2010

2011

2010

6,230,927Ö 79,728Ö _________ 6,310,655Ö ========

  Ö  Ö _________   Ö ========

1,431Ö 18 _____ 1,449Ö ====

 Ö 24 _____   =====

2011

2010

2011

2010

Short term deposit )NTHOUSANDSOF,EONES53$

1,210,983Ö   Ö 278 277 ======= ======= ==== ==== 4HEÖÙXEDÖDEPOSITÖISÖWITHÖ3TANDARDÖ#HARTEREDÖ"ANKÖ3, Ö,IMITEDÖATÖANÖINTERESTÖRATEÖOFÖÖPERÖANNUMÖÖ4HEÖAMOUNTÖWASÖPLACEDÖFORÖÖDAYS

Short term deposit Ö

13.1 The maturity of the short term deposits is analysed as follows; Le )NTHOUSANDSOF,EONES53$ Within 3 months After 3 months

-NSDRØSNØSGDØÚM@MBH@KØRS@SDLDMSRØBNMSHMTDC

2011 1,210,983Ö _________ 1,210,983Ö ========

2010   Ö _________   Ö ========

USD 2011 278 ____ 278 ====

2010 277 ____ 277 ====


BRAC MICROFINANCE (SL) LIMITED -NSDRĂ˜SNĂ˜SGDĂ˜ĂšM@MBH@KĂ˜RS@SDLDMSR for the year ended 31 December 2011 14.

Loans and advances to customers



)NTHOUSANDSOF,EONES53$

Le

Group loans

Ă–

Small enterprises program Loan write-off )NTERESTĂ–RECEIVABLEĂ– Impairment allowance

Ă–

USD

2011

2010

2011

2010

7,398,237Ă–

  Ă–

1,699Ă–

 

2,968,036Ă– (426,025)Ă– 129,015Ă– (944,464)Ă– _________ 9,124,799Ă– ========

 Ă–   Ă–  Ă–   Ă– _________   Ă– ========

682 (98) 30 (217)Ă– _____ 2,096Ă– =====

160 (2) 14  ______   =====

14.1 Movement on the loan account Le )NTHOUSANDSOF,EONES53$ Opening balance Loan disbursed Loan repayment

Ă–

Gross advance to customers Write-off )NTERESTĂ–RECEIVABLEĂ– Impairment loss on loans

Ă–

USD

2011

2010

2011

2010

7,098,144Ă– 18,794,400Ă– (15,526,271)Ă– __________ 10,366,273Ă– (426,025)Ă– 129,015Ă– (944,464)Ă– _________ 9,124,799Ă– ========

Ă–Ă–Ă–Ă–Ă–Ă–Ă–Ă–  Ă– Ă–Ă–Ă–Ă–Ă–Ă–  Ă– Ă–Ă–Ă–Ă–   Ă– _________ Ă–Ă–Ă–Ă–Ă–Ă–Ă–  Ă–   Ă–  Ă–   Ă– _________   Ă– ========

1,630Ă– 4,316Ă– (3,565)Ă– ______ 2,381Ă– (98) 30 (217)Ă– ______ 2,096Ă– ====

     ______   (2) 14  ______   =====

The impairment allowance is computed at the rate of 2% on total loans disbursed. 14.2 Movement on the impairment on loan Le )NTHOUSANDSOF,EONES53$ Opening balance Charge for the year Loan write off

2010

2011

2010

367,465Ă– 959,249Ă– (382,250)Ă– ________ 944,464Ă– =======

 Ă–  Ă–   Ă– ________  Ă– =======

104 220 (88) _____ 236Ă– =====

23 73 (2) ___  ===

The impairment allowance is computed at the rate of 2% on total loans disbursed.

-NSDRĂ˜SNĂ˜SGDĂ˜ĂšM@MBH@KĂ˜RS@SDLDMSRĂ˜BNMSHMTDC

USD

2011


BRAC MICROFINANCE (SL) LIMITED -NSDRĂ˜SNĂ˜SGDĂ˜ĂšM@MBH@KĂ˜RS@SDLDMSR for the year ended 31 December 2011

15.

Other assets Le )NTHOUSANDSOF,EONES53$

Ă– Ă– Ă– Ă–

!DVANCEĂ–TOĂ–SUPPLIERSĂ– 2ECEIVABLEĂ–FROMĂ–PROGRAMĂ– Sundry debtors )NTERCOMPANYĂ–RECEIVABLEĂ– )NVENTORY STATIONERIESĂ– HO current account

16.

Property and equipment

Ă˜

Ă˜ )NTHOUSANDSOF,EONES53$

Ă– Ă–

Cost !TĂ–Ă–*ANUARYĂ–Ă– !DDITIONSĂ–Ă–

Ă–

As at 31 December 2010 Ă– At 1 January 2011 Additions

Ă– Ă– Ă– Ă–

Motor 5DGHBKDRĂ˜ "XBKDRĂ˜

USD

2011

2010

2011

2010

20,221Ă– 392,386 67,308 -Ă– 41,345Ă– 346,373 _______ 867,633Ă– ======

Ă–  Ă–  Ă– _______  Ă– ======

5 80 15 -Ă– 9 80 _____ 189Ă– ====

 4 _____  ====

Furniture @MCĂ˜ ĂšSSHMFRĂ˜

.EĂšBDĂ˜ $PTHOLDMSĂ˜

3NS@KĂ˜Ă˜Ă˜Ă˜Ă˜Ă˜Ă˜Ă˜Ă˜ +NB@KĂ˜

42#

Ă– Ă–  Ă–  Ă–  Ă–   Ă–  Ă–  Ă–  Ă–  _______________________________________________________________________  Ă–  Ă–  Ă–  Ă–  =========================================================== 146,535 316,416 238,649 701,600 178 27,225 160,071 130,140 317,436 73 _______________________________________________________________________

As at 31 December 2011 173,760 476,487 368,789 1,019,036 251 =========================================================== Accumulated depreciation Ă– Ă–

!TĂ–Ă–*ANUARYĂ–Ă– #HARGEĂ–FORĂ–YEARĂ–

Ă–

!TĂ–Ă–$ECEMBERĂ–Ă–

Ă˜

At 1 January 2011 "G@QFDĂ˜ENQĂ˜XD@QĂ˜

 Ă–  Ă–  Ă–  Ă–   Ă–  Ă–  Ă–  Ă–  _______________________________________________________________________  Ă–  Ă–  Ă–  Ă–  =========================================================== 45,942 23,329 26,279 95,550 26  Ă˜  Ă˜  Ă˜  Ă˜  _______________________________________________________________________

!T$ECEMBER 77,386 63,492 73,742 214,620 56 =========================================================== Ă˜

"@QQXHMFĂ˜@LNTMS

Ă–

At 31 December 2010 Ă–

 Ă–  Ă–  Ă–  Ă–  ===========================================================

At 31 December 2011 96,374 412,995 295,047 804,416 195 ===========================================================


BRAC MICROFINANCE (SL) LIMITED -NSDRĂ˜SNĂ˜SGDĂ˜ĂšM@MBH@KĂ˜RS@SDLDMSR for the year ended 31 December 2011 -NSDRĂ˜SNĂ˜SGDĂ˜ĂšM@MBH@KĂ˜RS@SDLDMSRĂ˜BNMSHMTDC 17.

Loan security fund Le )NTHOUSANDSOF,EONES53$

USD

2011

2010

2011

2010

1,655,482Ă– 1,188,559Ă– (800,507)Ă– _________ 2,043,534Ă– ========

 Ă–   Ă–   Ă– _________   Ă– =======

414 239Ă– (184) _____ 469 ====

106  (30) ____ 414 ====

Ă–

Opening balance 2ECEIVEDĂ–DURINGĂ–THEĂ–YEARĂ– Paid off/Adjusted during the year

18.

Related party payable

Ă–

4HEĂ–ORGANISATIONĂ–HASĂ–AĂ–RELATEDĂ–PARTYĂ–RELATIONSHIPĂ–WITHĂ–3TICHTINGĂ–"2!#Ă–)NTERNATIONALĂ–WHICHĂ–PROVIDESĂ–MANAGEMENTĂ–ANDĂ–ADMINISTRATIVEĂ–SERVICESĂ–TOĂ–THEĂ– company.

Ten percent of all loans disbursed are deposited by the recipients.

Year end balance arising from transactions with related party Le )NTHOUSANDSOF,EONES53$ Payable to Stichting BRAC International Payable to program

USD

2011

2010

2011

2010

144,932 4,203 ________ 149,135 =======

________ =======

33 1 _____ 34 ====

_____ =====

2011

2010

2011

2010

399,753 =======

======

92 =====

======

 Ă˜ !NQQNVHMFR 

)NTHOUSANDSOF,EONES53$ KIVA

Ă–

4HISÖISÖAÖLOANÖTHATÖWASÖRECEIVEDÖFROMÖ+)6!ÖFORÖTHEÖENHANCEMENTÖOFÖTHEÖ-ICROÙNANCEÖPROGRAMÖ4HEÖLOANÖHASÖBEENÖPROVIDEDÖONÖTHEÖBASISÖOFÖTHEÖCOMPANYÖ FULÙLLINGÖCERTAINÖCONDITIONSÖFAILINGÖTOÖCOMPLYÖ7ITHÖWHICHÖWOULDÖLEADÖTOÖTERMINATION

20.

Other liabilities



)NTHOUSANDSOF,EONES53$

Ă– Ă–

Accrued expense HO current account 0ROVISIONĂ–FORĂ–AUDITĂ–FEESĂ– 3ALARYĂ–PROVISIONĂ–

2011

2010

2011

2010

18,848Ă– -Ă– 57,595 232,989 ________ 309,432Ă– =======

 Ă–  Ă– ________  Ă– =======

4 13 54 _____ 71Ă– ====

46 2 ______  =====


BRAC MICROFINANCE (SL) LIMITED -NSDRØSNØSGDØÚM@MBH@KØRS@SDLDMSR for the year ended 31 December 2011

-NSDRØSNØSGDØÚM@MBH@KØRS@SDLDMSRØBNMSHMTDC 21.

Donor fund Le )NTHOUSANDSOF,EONES53$

Ö Ö

$ONORÖFUNDÖRECEIVEDÖINÖADVANCEÖ $ONORÖFUNDÖINVESTMENTÖINÖLOANÖTO ÖÖ group members

Ö Ö

USD

2011

2010

2011

2010

225,202Ö Ö 484,548 _________ 709,750Ö =======

  Ö Ö __________   Ö ========

52Ö



111 ____ 163Ö ====

_____  =====

21.1 Donor fund received in advance Le )NTHOUSANDSOF,EONES53$

Ö Ö

Opening balance $ONATIONÖRECEIVEDÖDURINGÖTHEÖYEARÖ Transfer to equity $ONORÖFUNDSÖINVESTMENTÖINÖLOANSÖTOÖ Group member

Ö

USD

2011

2010

2011

2010

3,685,074 709,750Ö (3,685,074)

  Ö -

846 163Ö (846)

 -

(484,548) _______ 225,202Ö ======

_________   Ö ========

(111) _____ 52Ö ====

_____  ======

  Ø #NM@SHNMØQDBDHUDCØCTQHMFØSGDØXD@Q Le 

)NTHOUSANDSOF,EONES53$ UNCDF BRAC USA

USD

2011

2010

2011

2010

-Ö 709,750 _______ 709,750Ö ======

  Ö _________   Ö ========

-Ö 163 ____ 163Ö ====

 ____  ====

Ö

4HISÖISÖAÖGRANTÖTHATÖWASÖRECEIVEDÖFROMÖ"2!#Ö53!ÖFORÖTHEÖENHANCEMENTÖOFÖTHEÖ-ICROÙNANCEÖPROGRAMÖÖ4HEÖGRANTÖHADÖBEENÖPROVIDEDÖONÖTHEÖBASISÖOFÖTHEÖ COMPANYÖFULÙLLINGÖCERTAINÖCONDITIONS ÖFAILINGÖWHICH ÖPARTÖORÖALLÖOFÖTHEÖMONEYÖMAYÖHAVEÖTOÖBEÖREFUNDEDÖTOÖ"2!#Ö53!

22.

Share capital

Ø

-@LDØ

ØNEØGNKCHMF Le

)NTHOUSANDSOF,EONES53$ Ö Ö Ö

"2!#Ö)NTERNATIONALÖ(OLDINGSÖ"6ÖÖ /MIDYARÖ.ETWORKÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖ 3%$&ÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖÖ

ÖÖ ÖÖ ÖÖÖ

USD

2011

2010

2011

2010

6,244,890Ö 3,000,000Ö 3,000,000Ö __________ 12,244,890Ö ========

  Ö   Ö   Ö __________   Ö ========

1,434Ö 689Ö 688Ö ______ 2811Ö =====

    ______   =====


BRAC MICROFINANCE (SL) LIMITED -NSDRĂ˜SNĂ˜SGDĂ˜ĂšM@MBH@KĂ˜RS@SDLDMSR for the year ended 31 December 2011 -NSDRĂ˜SNĂ˜SGDĂ˜ĂšM@MBH@KĂ˜RS@SDLDMSRĂ˜BNMSHMTDC  Ă˜Ă˜ "@RGĂ˜Ă›NVĂ˜EQNLĂ˜NODQ@SHMFĂ˜@BSHUHSHDR Le )NTHOUSANDSOF,EONES53$

USD

2011

2010

2011

2010

"@RGĂ˜Ă›NVĂ˜EQNLĂ˜NODQ@SHMFĂ˜@BSHUHSHDR Ă– Ă–

%XCESSĂ–OFĂ–EXPENDITUREĂ–OVERĂ–INCOMEĂ– Depreciation ,OANĂ–LOSSĂ–PROVISIONĂ–

Ă–

(3,079,000)Ă– 119,069Ă– 959,249Ă– __________ (2,000,682)Ă–

 Ă–  Ă–  Ă– ________  Ă–

(707) 27 220 _____ (460)Ă–

11 17 71 ____ 

Ă–

(11,899)Ă–

 Ă–

(3)

20

Ă–

(538,342)Ă– (71,052)

  Ă– -

(123)Ă– (16)

 -

-Ă– 115,994Ă– 149,135 __________ (2,356,844)Ă– ========

  Ă–   Ă– ________   Ă– =======

-Ă– 27Ă– 34 _____ (541) ====

  ____ (60) ====

Ă–

)NCREASE$ECREASE Ă–INĂ–PROVISIONĂ–FORĂ–TAXATIONĂ–

Ă˜

"G@MFDRĂ˜HMĂ˜VNQJHMFĂ˜B@OHS@K

Ă–

$ECREASEINCREASE Ă–OFĂ–RECEIVABLESĂ–AND other assets $ECREASEINCREASE Ă–INĂ–INTERESTĂ–RECEIVABLESĂ– Decrease/(increase) of related party RECEIVABLESĂ– Increase/(decrease) of current liabilities Increase/(decrease) of related party payables

Ă– Ă–

Ă–

Ă–

Net cash from operations

 Ă˜ "NMSHMFDMBHDRĂ˜ There were no contingent assets or liabilities at 31 December 2011. (2010: Nil)

26.

Capital commitments There were no capital commitments as at 31 December 2011 (2010: Nil)

27.

Post balance sheet events

Ă–

%VENTSÖSUBSEQUENTÖTOÖTHEÖBALANCEÖSHEETÖDATEÖAREÖREÚECTEDÖONLYÖTOÖTHEÖEXTENTÖTHEYÖRELATEÖDIRECTLYÖTOÖTHEÖÙNANCIALÖSTATEMENTSÖANDÖTHEIRÖEFFECTÖISÖMATERIALÖÖ 4HEREÖWEREÖNONEÖSUCHÖEVENTSÖASÖATÖTHEÖDATEÖTHESEÖÙNANCIALÖSTATEMENTSÖWEREÖSIGNED


Photo Credit: Client Photos: BRAC Rest of the Photos : BRAC/Jake Lyell

BRAC BRAC Centre 75 Mohakhali Dhaka 1212 Bangladesh

T : +88 02 9881265 F : +88 02 8823542 E : info@brac.net W : www.brac.net

BRAC International

BRAC in Sierra Leone

Teleportboulevard 140 1043 EJ Amsterdam Netherlands

23 Old Lumley Road Off Spur Road Wilberforce, Freetown Sierra Leone


BRAC communications/INT AR11/Aug12

www.brac.net

Sierra Leone Annual Report 2011  
Sierra Leone Annual Report 2011  

With a population of 5.8 million, coastal Sierra Leone – a name that comes from the Portuguese for “Lion Mountains” – achieved independence...

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