Creating Economic Opportunities in. Bangladesh MICRO INDUSTRIES DEVELOPMENT ASSISTANCE AND SERVICES (MIDAS)

Transcription

1 Creating Economic Opportunities in Bangladesh MICRO INDUSTRIES DEVELOPMENT ASSISTANCE AND SERVICES (MIDAS)

2 Entrepreneurship Training conducted by MIDAS Inauguration of Training of Trainers on Entrepreneurship Development sponsored by ILO Group exercise by the participants during ToT A Training session of ToT is in progress Sharing of own experience by a participant A session of skill training in Habigonj Various products made by the participants during skill training in Habigonj Partcipants practicing product making in the skill training in Habigonj Awarding of certificate to a participant of skill training in Habigonj

3 Monitoring & Evaluation Training Technology Transfer for Private Sector Development Information and Counselling Marketing Assistance for Women Entrepreneurs MICRO INDUSTRIES DEVELOPMENT ASSISTANCE AND SERVICES (MIDAS) MIDAS Centre (11th Floor) Plot 5 Road 16 (New) (Old 27) Dhanmondi Dhaka 1209 Bangladesh T: , , M: F: midas@midas.org.bd

4 CONTENTS Mission, Vision and Objectives 3 Core Services of MIDAS 3 Board of Directors 4 MIDAS Team 5 Notice for Twenty Fourth Annual General Meeting 6 Directors' Report 7 1. Study and Research Monitoring, Evaluation, Design and Supervision of ASSSRB Project Market Study on Float Glass in Bangladesh Feasibility Study for a Full Automatic 500MT Flour Mill Survey on Reasons for Production Inabilities to Meet the Market Needs of Diversified Jute Products of Bangladesh and Means to Overcome Those Market Study on Training Infrastructure and Hospitality Services 9 2. Training Entrepreneurship Development Training for ILO Skill Development Training for LGED Technology Transfer IBN Sina Imaging and Diagnostic Centre CORR The Jute Works Prokritee BD Venture Limited Max Foundation MAKS Renewable Energy Company Limited Information Dissemination Accounts for the Year Composition of the Board of Directors Future Outlook Acknowledgement 17 Auditors' Report 18-31

5 Mission, Vision and Objectives Vision To be the front-line business development service provider in Bangladesh. Mission To help generation of employment to reduce poverty and promote socio-economic development. Objectives MIDAS is committed to the development of a sound and rapidly growing micro, small and medium enterprizes sector in Bangladesh. Accordingly, it aims at: Identifying promising micro, small and medium-scale enterprizes by providing financial, managerial and technical assistance. Developing entrepreneurship and helping entrepreneurs to seek and explore new business opportunities. Facilitating capacity building of micro, small and medium enterprizes and promoting organizations. Serving as a catalytic force for the growth of micro, small and medium-scale business enterprizes in the country. Continuously developing its institutional capability to operate on self-sustainable basis. Core Services of MIDAS The core services of MIDAS include: Study & Research Baseline Survey and End-line Survey Human Resource Development Technology Transfer for Private Sector Development Information and Counseling Project Preparation, Implementation, Management, Monitoring & Evaluation Marketing Assistance for Women Entrepreneurs 3

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8 Notice for Twenty Fourth Annual General Meeting November 27, Notice is hereby given that the Twenty Fourth Annual General Meeting of the Members of MIDAS will be held at 1.30 p.m. on Tuesday, December 20, at its Head Office at MIDAS Centre (11 th floor), Plot No. 5, Road No. 16 (New), Dhanmondi, Dhaka-1209, Bangladesh to transact business as per the following agenda: AGENDA 1. To consider and adopt the Directors' Report for the period ended on June 30,. 2. To consider and adopt the Audited Accounts for the year ended on June 30, and the Auditors' Report thereon. 3. To appoint auditors for the year and fix their remuneration. 4. To elect Members of the Board. For and on behalf of the Board, Dr. A.S.M. Mashi-ur-Rahman Managing Director Note: A member entitled to attend and vote at the Annual General Meeting may appoint a proxy to attend and vote his/her instead. No person shall act as a proxy unless s/he is a member. The proxy form, duly stamped, must be deposited at the registered office of the Company no later than 72 hours before the time of holding the General Meeting. 6

9 Directors' Report It is my great pleasure to place before the Board of Directors of Micro Industries Development Assistance and Services (MIDAS) the Directors' Report on the activities for the year ended on June 30,. During the year under the report several Board Meetings were held. The meetings helped improve performance of MIDAS by reviewing its operation and providing necessary policy guidelines to the management. 1. Study and Research MIDAS provides consultancy services on monitoring and evaluation, design and supervision, industrial project development, business management and marketing. It conducts survey, study and research, independent monitoring and evaluation for national and multinational companies, financial institutions, development partners, donors, government organizations, international and local NGOs. During the year MIDAS earned BDT million as fees from the following consultancy assignments: 1.1 Monitoring, Evaluation, Design and Supervision of ASSSRB Project Agricultural Support for Smallholders in South-Western Region of Bangladesh (ASSSRB) is a Project of Department of Agriculture Extension under Ministry of Agriculture of the Government of Bangladesh. The project was launched in 58 Upazilas of 9 Districts of Southwestern region for the tenure of July June 2018 with the funding support of Islamic Development Bank (IDB). The goal of the project is to improve livelihood of landless, marginal and small farmers through integrated and sustainable productivity cultural Support for Smallholders in South-Western Region of Bangladesh (ASSSRB) is a Project of Department of Agriculture Extension under Ministry of Agriculture of Bangladesh Government. The project was launched in 58 Upazilas of 9 Districts of Southwestern region for the tenure of July June 2018 with the funding support of Islamic Development Bank (IDB). The goal of the project is to improve livelihood of landless, marginal and small farmers through integrated and sustainable productivity. MIDAS signed a three-year agreement with ASSSRB Project for independently carrying out monitoring, evaluation, design and supervision of ASSSRB project. Under the contract MIDAS appointed and assigned technical and monitoring experts along with support staff and stationed them at Khamar Bari and LGED Bhaban. They are responsible for carrying out actions, namely, a) Providing support to Project Monitoring Unit (PMU) staffs for flawless operations, b) assisting preparation of training materials, consolidating manual work plans and budgets, c) assisting preparation of technical design with specifications of infrastructure and equipment, d) assisting preparation of tender documents for goods and constructions materials, e) providing overall specific monitoring and supervision services, f) assisting preparation of regular 7

10 progress report and submitting the same to IDB, (g) facilitating contract of various services and providing direction on baseline survey and studies undertaken by the project. Involvement of MIDAS with ASSSRB Project commenced in January and will continue till June Dr. Mohammad Shafiqul Islam, Project Director, ASSSRBP and Dr. A. S. M. Mashi-ur-Rahman, Managing Director, MIDAS signed the agreement on behalf of their respective organizations. Dr. Abdul Maleque Taluqder, M & E Consultant in a review workshop of ASSSRBP at Bagerhat 1.2 Market Study on Float Glass in Bangladesh Nasir Group of Industries is one of the leading industrial conglomerates of the country, comprising of glass, melamine, energy saving lamp, footwear, glassware, tobacco, printing, etc. Nasir Glass Industries Ltd., a concern of Nasir Group, has daily production capacity of 400 MT of float glass. At the backdrop of growing demand of the country, Nasir Group is planning to build another float glass manufacturing plant of 600 MT per day capacity. To check market demand and commercial viability of the proposed investment Nasir Group assigned MIDAS to carry out a market survey in this regard. Accordingly, MIDAS carried out the market study investigating the present market status and future potential of float glass in Bangladesh. 1.3 Feasibility Study for a Full Automatic 500MT Flour Mill 8 MIDAS carried out feasibility study of a fully automatic flour mill for Sena Kalyan Sangstha (SKS) covering its organization and management, marketing, technical and financial aspects. MIDAS developed detailed computerized financial analysis with the technical and marketing inputs of the proposed project. The project is envisaged to be established at Fatullah, Narayangonj with per day capacity of 500 MT of Atta, Maida and Suji. 1.4 Survey on Reasons for Production Inabilities to Meet the Market Needs of Diversified Jute Products of Bangladesh and Means to Overcome Those Once again, jute, the golden fibre of Bangladesh, is set out to retrieve its lost glory. A progressively more conscious global population for re-evaluating their consumption behaviour at the face of environmental concerns has helped bring it back.

11 Research conducted by the Jute Diversified Products Council estimates that 80 percent earnings of Jute Diversified Products (DJPs) sector of Bangladesh are coming from exports. The sector has the potential to reach 300% of its current size domestically if we are able to set appropriate strategies. However, DJPs worth about USD 53 Million are being exported yearly at present. This amount is only about 6% of export basket of Jute and Jute Goods. At this backdrop, assigned by Export Promotion Bureau (EPB), MIDAS carried out a survey titled "Survey on Reasons for Production Inabilities to Meet the Market Needs of Diversified Jute Products of Bangladesh and Means to Overcome Those". The outcome is expected to facilitate EPB to take appropriate measures for promoting and developing Diversified Jute Products of Bangladesh. Presentation of study findings by MIDAS Team at EPB Conference Room with Ms. Mafruha Sultana, Vice- Chairman and CEO of EPB presiding 1.5 Market Study on Training Infrastructure and Hospitality Services MIDAS carried out a study titled "Market Study with Market Analysis on the Training Infrastructure and Hospitality Services of Training and Learning Centre (TLC)" of Centre for Disability in Development (CDD). CDD, a Savar Based NGO, has been rendering training infrastructure and hospitality services through its Training and Learning Centre (TLC). The centre organizes trainings, seminars and workshops with accommodation, meal and other related facilities for their clients. The study explored training infrastructure and hospitality facilities available with the major service providers in the Government, NGO and Private Sectors and also collected feedback of the clients regarding quality of facilities, service delivery and expectations. The findings of the study will assist CDD to offer better quality services to clients and facilitate to generate increased revenue. 2. Training Dr. A. S. M. Mashi-ur-Rahman, Managing Director, MIDAS and Mr. A.H.M. Noman Khan, Executive Director, CDD signed agreement on behalf of their respective organizations MIDAS provides training services on regular basis mainly in the fields of Entrepreneurship Development, Business Management, Skill Development, Sales and Marketing, etc. This year SME & Special Programmes Department of Bangladesh Bank accredited (accreditation/registration number- BB/SMESPD/014) Micro Industries Development Assistance and Services (MIDAS) as the training/entrepreneurship development organization under "The New Entrepreneurs' Refinancing Scheme for Cottage, Micro and Small Enterprise Sector". This is indeed recognition of the valuables 9

12 services MIDAS has rendered in creating and developing entrepreneurs and enterprises. In the year under report the Training Unit earned BDT 7.51 million. 2.1 Entrepreneurship Development Training for ILO ILO is implementing Bangladesh Skills for Employment and Productivity (B-SEP) Project in conjunction with the Government Agencies and four Partner Organizations. Under "Improved Access to Skills" component B-SEP project aims to ensure various poor, vulnerable, disadvantaged and marginalized populations to have equitable access to formal and informal skills training and employment opportunities. A contract for services was signed between ILO Country Office for Bangladesh and MIDAS. MIDAS was assigned to conduct Training of Trainers (ToT) of Partner Organizations and other stakeholders of B-SEP Project. Apart from conducting ToT, MIDAS was also entrusted by ILO to review partner organizations' capacity in conducting training for selected entrepreneurs under the project; and conducting Reinforcement Training for the participants taking part in the ToT. ToT:As part of signed contract between MIDAS and ILO a 5-day ToT on Entrepreneurship Development Programme was conducted by MIDAS Team in September 2015 at MIDAS Centre in Dhanmondi, Dhaka. A total of 20 participants from different partner organizations and government agencies associated with B-SEP Project took part in the training programme. ToT course covered various topics, such as, identification of entrepreneurial qualities, simple book keeping, discussions on marketing and production, small project (business) identification, screening of business ideas, cost calculations and cash flow, profit and loss calculation, preparation of business plan in a formatted workbook, training tips and techniques, etc. A training session of ToT on Entrepreneurship Development 10

13 Review of Partner Organizations: After successful completion of TOT, MIDAS carried out review of Partner Organizations of B-SEP, ILO in November MIDAS reviewed capacity of four partner organizations of B-SEP Project in training delivery and assessed further training needs of these organizations for incorporating in the reinforcement training. Mr. Kishore Kumar Singh, Adviser, B-SEP Project, ILO and Dr. A.S.M. Mashi-ur- Rahman, Managing Director, MIDAS are seen with TOT participants Reinforcement Training on Entrepreneurship Development Programme: One 2-day Reinforcement Training on Entrepreneurship Development Programme was conducted by MIDAS at MIDAS Centre in November Professionals of partner organizations and other stakeholders who attended the TOT conducted by MIDAS participated in this training. Recap of learning of ToT was the main objective of the reinforcement training. In addition, some topics for further training needs were included in the training, which were identified through evaluators' observations and discussions with the trainers of partner organizations during review Dr. A.S.M. Mashi-ur-Rahman, Managing Director, MIDAS is seen in a training session as part of review of partner organization's capacity to deliver training 2.2 Skill Development Training for LGED of partners' capacity to deliver training Local Government Engineering Department (LGED) of Bangladesh Government has been implementing Haor Infrastructure and Livelihood Improvement Project (HILIP) in 28 upazilas that include 165 unions of Sunamgonj, Kishoregonj, Netrokona, Habigonj and Brahmanbaria districts. These districts suffer from extensive annual flooding, making livelihood extremely vulnerable and limiting the potential for agricultural and rural enterprise growth. The objective of the project is to improve living standards and reduce vulnerability of the poor. As per understanding with the HILIP Project MIDAS conducted Advanced Improved Skill Development Training Courses of 10 days duration for 8 batches in Habigonj district on the following subjects: 11

14 Jute Products Bamboo Products Cane Products Wood Products A total of 160 beneficiaries of HILIP project participated in these courses consisting of 115 female and 45 male participants. These trainings were funded by International Fund for Agricultural Development (IFAD) and Spanish Trust Fund (STF) on HILIP of LGED and these were arranged under Climate Adaptation and Livelihood Improvement Project (CALIP). Inaugural Ceremony of Skill Development Training in Habigonj in presence of LGED and MIDAS Officials Participants of skill training on bamboo products and products produced by them during training 3. Technology Transfer PUM-Netherlands Senior Experts is a government supported organization based in the Netherlands. It offers services of volunteer experts to help industrial/commercial ventures and social organizations of developing countries bring improvement and run more effectively and efficiently. These experts are mostly former senior/top level professionals. MIDAS is the institutional representative of PUM-Netherlands in Bangladesh and is receiving support from PUM-Netherlands for its Technology Transfer for Private Sector Development (TTPSD) Program in Bangladesh. PUM bears the international travel expenses of the experts and the local beneficiaries meet only their local expenses for accommodation, food, transportation and laundry. During FY PUM Senior Experts in Bangladesh through MIDAS carried out six missions for the following organizations: 3.1 IBN Sina Imaging and Diagnostic Centre Ibn Sina Diagnostic and Imaging Centre is one of the large diagnostic centres in Bangladesh, providing health care services for more than three decades through its various facilities in Dhanmondi, Dhaka including general Health Check-up, Executive Health Check-up, Cardiac Health Check-up and Diabetic Health Check-up services. It is equipped with the latest and technologically advanced equipment and appliances. A number of leading specialized consultants are engaged in the centre. 12

15 The Centre was contemplating to upgrade its customer care unit to a world-class style and, therefore, approached MIDAS to select a PUM-Netherlands Senior Expert who would identify the right solution for modernizing their customer care unit in particular. Accordingly, a PUM Senior Expert namely, Mr. R. A. Van Genus (Project MBJ) came to Bangladesh in July 2015 and provided training on modern customer care techniques at Ibn Sina Diagnostic and Imaging Centre for different tier of customer care officials and nurses. The 15-day assignment of Mr. Genus was successfully accomplished to the satisfaction of the beneficiary. 3.2 CORR The Jute Works PUM-Netherlands Senior Expert Mr. R.A. Van Genus with Dr. A.S.M. Mashi-ur-Rahman, Managing Director, MIDAS and Ibn Sina Officials CORR - The Jute Works is a registered Fair Trade Trust for producing and marketing various jutebased handicraft items. The organization would like to develop its local management system and is also planning to receive CBI-Netherlands Certificate as a quality product producer and exporter. With these objectives in mind the Trust approached MIDAS for sourcing an appropriate PUM expert. One Mr. Huub Beckers (case # 61de467) was assigned by PUM for the task, who provided necessary service to CORR - The Jute Works in November Prokritee Prokritee was endowed by the Mennonite Central Committee (MCC) in 2001 to independently manage eight job creation projects with its own management and organizational structure. These projects were set up by MCC during in different parts of Bangladesh. Presently these projects are treated as the production units of Prokritee. Each unit is individually supervised by a unit manager with the PUM-Netherlands Senior Expert Mr. Jan Baak with Dr. A.S.M. Mashi-ur-Rahman, Managing Director, MIDAS and Mr. Swapan Das, Executive Director, Prokritee at Prokritee Office 13

16 help of a production management committee. Products developed by Prokritee designers and produced by the artisans are sold in Bangladesh and are also exported to many countries around the world. PUM Senior Expert Mr. Jan Baak visited Prokritee, Dhaka (case # d33e454) in December He assessed Prokritee as a quality product producer and advised and guided them as to how to attain CBI certification. 3.4 BD Venture Limited BD Venture Limited, a Venture Capital Company, established to promote innovative and potential seed, early and growth stage entrepreneurs and enterprises to pave their expansion through facilitating investment, consultancy and other relevant services. It was launched with the mandate to invest in innovative business concepts or enterprises in emerging and high-growth sectors. PUM Senior Expert Mr. Rudolf van Herwaarden came to Dhaka in January 2015 on a mission (Case no# b664c58) to develop business and management of venture capital of the company as a follow up of his earlier visit. 3.5 Max Foundation PUM Senior Expert Mr. Rudolf van Herwaardm with Dr. A.S.M. Mashi-ur-Rahman, Managing Director, MIDAS and Mr. Shawkat Hossain, MD, BD Venture Ltd. at BD Venture Ltd. Office Max Foundation was established by Mrs. Joke and Mr. Steven Le Poole in 2005 after the death of their son Max Le Poole. Max was only eight months old and died of a rare viral infection. To save other parents from such deep pain and to ensure healthy future for and prevent many children from getting attacked with the infection in future Max Foundation was established. In Bangladesh Max Foundation is a fast growing Dutchbased international NGO that works on reducing child mortality through Max-WASH project. This project is an adoption of UNICEF's WASH (Water, Sanitation and Hygiene) program and currently is being implemented with the help of other local partner organizations. Mr. Jan Oomen, PUM Senior Expert on "Organizational Development and Fund Raising" came to Dhaka in January for the second time as a follow up visit (Case#ID25238). He trained and advised Max team on 14 PUM Senior Expert Mr. Jan Oomen with Dr. A.S.M. Mashi-ur-Rahman, Managing Director, MIDAS

17 organizational development and fund raising activities. He focused on strengthening team work, strategic planning for fund raising, internal fund raising, technical/ managerial capacity development as well as partner management. 3.6 MAKS Renewable Energy Company Limited MAKS Renewable Energy Company Limited (MRECL) is one of the growing players in the arena of Renewable Energy Service providers in Bangladesh. MRECL started its journey in 2006 and is now offering commercial, residential and turnkey renewable energy systems for grid-tied and off-grid applications using one or combinations of its wider product ranges including Solar, Biogas and Wind Power. Within a short span of time MRECL has been able to take leading position in the above fields and has installed a good number of solar powered home and pump systems, and also put up bio-gas plants. MRECL is a partner organization of IDCOL for Solar and Bio- Gas Program. For achieving higher performance in renewable energy sector the company approached MIDAS for sourcing appropriate PUM expert. Accordingly PUM Senior Expert Mr. Joham G Theodor Flint (case# b73a7b9) came to Dhaka in February and developed 4.4 MW solar-diesel hybrid power plant (where solar is the primary source and diesel is the secondary source) for the company. He also trained concerned personnel and arranged a business link for the company. 4. Information Dissemination PUM Senior Expert Mr. Joham G Theodor Flint with Dr. A.S. M. Mashi-ur- Rahman, Managing Director, MIDAS and Mr. Nessar Maksud Khan, MD, MRECL MIDAS is the sole distributor of the publications of the World Bank, International Monetary Fund (IMF), Asian Development Bank (ADB), and Food & Agriculture Organization (FAO) in Bangladesh. It serves the need of government, semi-government, educational institutions, NGOs, research organizations and individuals. The publications are sold in local currency and in most of the cases, attractive discounts are offered to the buyers. In publications worth BDT 1.31 million only were sold. In MIDAS published quarterly news bulletin, MIDAS News and circulated to chambers of commerce, trade associations, government agencies, banks, development financing institutions, diplomatic missions, international organizations, NGOs, donor agencies and selected individuals working as development practitioners at national and international levels. 5. Accounts for the Year The total income earned by MIDAS during the year was BDT million as against BDT million in the previous year. The total expenditure for the year was BDT million during as against BDT million in past year. The detailed audited accounts of MIDAS for the year ended on June 30, along with the Auditors' Report thereon are submitted separately. 15

18 6. Composition of the Board of Directors Article 40 of the Company provides that all Members of its Board of Directors except the Managing Director shall serve for a period of 2 (two) years and that they shall be eligible for re-election for further additional terms. At present there are eleven Members (excluding the Managing Director) on the Board. Of them the following two Members were elected in the Twenty Third Annual General Meeting held on December 20, 2015: Major General Mahabbat Jan Chowdhury (Retd.) Ms. Parveen Mahmud The following Directors were elected in the Twenty Second Annual General Meeting held on December 20, 2014: 1. Mr. S.M. Al-Husainy 2. Mr. Shaikh A. Halim 3. Mr. Mohammed Ikramullah 4. Ms. Rokia A. Rahman 5. Prof. Hafiz G.A. Siddiqui 6. Mr. Mirza Ali Behrouze Ispahani 7. Mr. Bazlur Rahman Khan 8. Ms. Sabina Alam 9. Mr. Anjan Chowdhury These nine Directors are retiring and being eligible, are offering themselves for re-election in the Twenty Fourth Annual General Meeting. A glimpse of the 23 rd Annual General Meeting of MIDAS 16

19 7. Future Outlook With the vision to be the front-line business development service provider in Bangladesh MIDAS has been providing various services since its inception in These services include project preparation, project implementation, project management, monitoring and evaluation, design and supervision, socio-economic study and research, industrial project feasibility study, training on entrepreneurship development, business management, skill development, baseline survey, end-line survey, consulting, distribution of publications and technology transfer for private sector development with the help of senior foreign experts for the benefit of various agencies and individuals. These activities will continue to be the areas of operation of MIDAS in the future also. In addition, securing multi-year contracts through competitive bidding from the Government and Development partners that facilitate larger returns will also be pursued. Some of the areas or projects that MIDAS is contemplating to get more active and participatory involvement in are as follows: Ensuring women's and girls' rights through awareness, skill and entrepreneurship development and organizing MIDAS Trade Fairs in Division and national level. Capacity building of communities and local people to save their lives from natural calamities (earth quake, flood, etc.), accidents and fire. MIDAS is working as monitoring, evaluation, design and supervision consultant for the Agricultural Support for Smallholders in South-Western Region of Bangladesh (ASSSRB) Project of Ministry of Agriculture of Bangladesh Government. Similar types of other projects under Ministry of Agriculture are in the offing and MIDAS is maintaining close contacts with the concerned official to win future bids and get involved. MIDAS has been arranging foreign technology transfers for organizations in 32 sectors located in Divisional Headquarters of Bangladesh mostly in Dhaka and Chittagong Divisions. However, to expand this service to wider areas of the country focus will be given to organizations based in other districts of the country in the coming year. MIDAS is gradually becoming an important consulting house in the power sector of Bangladesh. This year MIDAS will conduct a baseline survey on access to electricity and improved cooking using the Global Tracking Framework (GTF) for Power Cell, Ministry of Power, Energy and Mineral Resources, Government of the People's Republic of Bangladesh with the financial support of the World Bank.The GTF is meant to analyze and track the progress and the extent of access to energy using multi-tier measurement. The results of baseline survey will unswervingly help the vision of the Government of Bangladesh (GOB) for universal access to electricity by 2021 when Bangladesh will celebrate its Golden Jubilee. 8. Acknowledgement MIDAS acknowledges with thanks the support and co-operation MIDAS received from valuable clients, well-wishers and development partners in implementing its various programmes. MIDAS also owes to the MIDAS Board members for their appreciation, guidance and inspiration rendered to MIDAS employees to improve the operational efficiency and financial standing of the organization. Bazlur Rahman Khan Chairman 17

20 23/G/1, HB Tower (1st Floor) Panthapath, Dhaka-1205 T. Hussain & Co. Chartered Accountants AUDITORS' REPORT We have audited the accompanying Financial Position of the Micro Industries Development Assistance and Services (MIDAS) as at June 30, and Statement of Comprehensive Income and Statement of Cash Flows and notes to the financial statements for the year then ended. The preparation of these financial statements is the responsibility of MIDAS's management. Our responsibility is to express an independent opinion on these financial statements based on our audit. We conducted our audit in accordance with Bangladesh Standards on Auditing (BSA), which are consistent in all material respects with International Standards on Auditing (ISA), International Financial Reporting Standards (IFRS) as adopted in Bangladesh. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Our audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our audit also includes assessing the accounting policies used and significant estimates made by management as well as evaluating the overall financial statement preparation. We believe that our audit provides a reasonable basis for our opinion. Independent Opinion: a) In our opinion, the financial statements prepared in accordance with Bangladesh Accounting Standards (BAS), give a true and fair view of the state of Company's affairs as at June 30, and of the result of its operations and Cash Flows for the year then ended and comply with the Companies ACT 1994, and other applicable laws and regulations. b) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit and made due verification thereof. c) In our opinion, proper books of account as required by regulating law and rules and regulations have been kept by MIDAS so far as it appeared from our examination of those books. d) The statement of Financial Position, statement of Comprehensive Income and statement of Cash Flows dealt with by the report are in agreement with the books of accounts. Date: November 02, T. Hussain & Co. Chartered Accountants 18

21 MICRO INDUSTRIES DEVELOPMENT ASSISTANCE AND SERVICES (MIDAS) Statement of Financial Position As at June 30, Amount (Tk.) Amount (Tk.) A. Fixed Assets : 3,754,257 4,174,571 Fixed Assets at Cost ,399,477 19,292,420 Less: Accumulated Depreciation 15,645,220 15,117,849 B. Investments : 476,532, ,922,347 Fixed Deposit ,900, ,900,000 Equity participation ,397, ,397,660 Staff Welfare Loan ,235,229 1,624,687 C. Current Assets : 24,702,796 21,501,268 Advance deposits & prepayment ,694,537 14,179,847 Project loans receivables , ,392 Cash and Bank Balances ,898,867 7,212,029 Total Property and Assets (A+B+C) : 504,989, ,598,186 Financed by : A.Capital and Reserves 250,547, ,847,182 Capital Fund Account ,547, ,847,182 B. Current Liabilities 18,609,248 24,369,248 Other Current Liabilities ,139,296 23,899,296 Donation , ,952 C. Accumulated Surplus / ( Deficit ) ,833, ,381,756 Total Liabilities and Fund (A+B+C) : 504,989, ,598,186 The annexed notes from 1.00 to form an integral part of the financial statements Chairman Board of Directors Director Subject to our separate report of even date annexed. Managing Director Date: November 02, T. Hussain & Co. Chartered Accountants 19

22 MICRO INDUSTRIES DEVELOPMENT ASSISTANCE AND SERVICES (MIDAS) Statement of Comprehensive Income For the Year Ended 30 June, Amount (Tk.) Amount (Tk.) Operational Income ,982,024 39,447,735 Less: Operational Expenses ,256,570 27,317,720 Operational Surplus / ( Deficit ) (274,546) 12,130,015 Less : Administrative Expenses ,803,497 11,076,507 Net Operational Surplus / ( Deficit ) (12,078,043) 1,053,508 Add.Non Operational Income ,529,800 44,077,534 Net Surplus/ (Deficit ) for the year 451,757 45,131,042 The annexed notes from 1.00 to form an integral part of the financial statements Chairman Board of Directors Director Managing Director Date: November 02, T. Hussain & Co. Chartered Accountants 20

23 MICRO INDUSTRIES DEVELOPMENT ASSISTANCE AND SERVICES (MIDAS) Statement of Cash Flows For the Year Ended 30 June, Amount (Tk.) Amount (Tk.) A. Cash flow from Operating Activities : Net Profit 451,757 45,131,042 Depreciation 527, ,725 Total cash generated from operation 979,127 46,069,767 Advance Deposits and Prepayments 2,485,310 (759,457) Other Current Liabilities (5,760,000) 22,000,000 Total Cash flow from Operating Activities (2,295,563) 67,310,310 B. Cash flow from Financing Activities : - - Net cash used in financing activities - - C. Cash flow from Investing Activities : Purchase of Fixed Assets (107,057) (195,400) Purchase of Rights share (69,198,830) Project loan Recovery 7,700,000 - Fixed Deposit 4,853,447 Staff Household Item Loan 389, ,637 Total Cash flow from Investing Activities 7,982,401 (64,256,146) Net Cash Increase ( A+B+C) 5,686,838 3,054,164 Add: Opening Cash and Bank Balances 7,212,029 4,157,865 Closing Cash and Bank Balances 12,898,867 7,212,029 The annexed notes from 1.00 to form an integral part of the financial statements Chairman Board of Directors Director Managing Director Date: November 02, T. Hussain & Co. Chartered Accountants 21

24 MICRO INDUSTRIES DEVELOPMENT ASSISTANCE AND SERVICES (MIDAS) to the Financial Statements For the Year Ended 30 June, 1.00a. STATUS OF THE COMPANY: MIDAS operated as a Society under the Societies Registration Act 1860 to promote and develop micro industries till March Micro Industries Development Assistance and Services (MIDAS) was incorporated as a Company Limited by Guarantee with the same objectives under Section 26 of the Companies Act 1913 vide Certificate of Incorporation No. CTO-304 (16)/92 dated December 30, All assets, liabilities and other obligations as reflected in the society's Balance Sheet as at April 30, 1993 were transferred to the Company on May 01, 1993 in accordance with a vendor's agreement made between the then Society and the newly formed Company on March 29, 1993 MIDAS is basically a non-profit company and is specifically prohibited to pay any dividend to its members. b. Objectives of the Company The main objectives of the Company are to develop and promote micro and small enterprises for the creation of employment on a self-sustainable basis through (i) disseminating information on micro and small enterprises, (ii) carrying out studies and research (iii) identifying innovative projects and potential entrepreneurs for micro and small enterprise development, (iv) offering a package of service including financial assistance, (v) promoting women entrepreneurship and (vi) offering consultancy services for industrial development. c. Activities of the Company The activities of MIDAS are conducted through seven Cost Centres viz. i) Project Monitoring, ii) Micro Industries Development Initiatives (MIDI), iii) Study and Research, iv) Information, v) Training, vi) Finance & Administration and vii) Managing Director's Secretariat. An associate company, named MIDAS Financing Limited, started operation from January, 2000 under license from Bangladesh Bank and took over the financing activities of the Company. The responsibility of recovering the Project Loans disbursed prior to the takeover has been entrusted to the associate company and the costs incurred for monitoring and recovery of the loans are charged to the first two of the above mentioned cost centres SIGNIFICANT ACCOUNTING POLICIES: a. Book Keeping and Accounting System The book keeping and accounting system of the Company was designed by the consultants appointed by USAID, in accordance with internationally accepted accounting standard and is fully computerized. b. Convention The organization prepares its financial statements on historical cost convention under integrated accounting system. The Expenses of the Company are charged to the five cost centers. c. Recognition of Income and Expenditure Although the accounts of the company are maintained on Bangladesh Accounting Standards (BAS), the Company recognizes its income and expenditure on cash basis 22

25 d. Depreciation The Company depreciates its fixed assets according to the reducing balance method so as to amortise their values over the useful life of the assets. Depreciation is charged for the whole year irrespective of the date of acquisition. During the year under audit assets were depreciated at the following rates which are consistent with the previous practice 3.00 GENERAL: 3.1 Figures have been rounded off to the nearest Taka. Type of Assets Rate % Office Furniture 10% Office Equipment 10% Electrical Equipment 15% Training Equipment 10% Vehicle 20% Interior Decoration 10% Books 30% Other Assets 30% 3.2 Previous year's figures have been rearranged wherever necessary to conform to the current year's presentation. 3.3 Since the accounting is on cash basis no provision for income tax has been made FIXED ASSETS : Tk. 3,754,257 The above balance has been arrived as at under : Amount (Tk.) Amount (Tk.) 2015 Opening Balance as at ,292,420 19,097,020 Add : Addition during the year 107, ,400 19,399,477 19,292,420 Less : Adjustment during the year ,399,477 19,292,420 Less : Accumulated depreciation 15,645,220 15,117,849 Closing Balance as at ,754,257 4,174,571 Detailed Statement of the above amount is given in Annexure -A FIXED DEPOSIT : Tk. 113,900,000 The above balance has been arrived as at under : Amount (Tk.) Amount (Tk.) 2015 Opening Balance as at ,900, ,753,447 Add : Investment during the year ,900, ,753,447 Less : Encashment during the year - 4,853,447 Closing Balance as at ,900, ,900,000 23

26 Detailed Statement of the above amount is given in Annexure -C EQUITY PARTICIPATION : Tk. 361,397,660 The above balance has been arrived as at under : Amount (Tk.) Amount (Tk.) 2015 Opening Balance as at ,397, ,198,830 Add : Addition during the year - 144,198, ,397, ,397,660 Less : Sale of shares - 75,000,000 Closing Balance as at ,397, ,397, STAFF WELFARE LOAN : Tk. 1,235,229 The above balance has been arrived as at under : Amount (Tk.) Amount (Tk.) 2015 Opening Balance as at ,624,687 1,909,324 Add: Addition during the year 50,000 60,000 1,674,687 1,969,324 Less: Recovered during the year 439, ,637 Closing Balance as at ,235,229 1,624,687 The breakup of the above amount is given below : Amount (Tk.) Amount (Tk.) 2015 Housing Loan 961,540 1,189,303 Transport Loan 241, ,685 Household Loan 32,000 93,699 Total : 1,235,229 1,624, ADVANCE, DEPOSIT & PREPAYMENTS : Tk. 11,694,537 The above balance has been arrived as at under : Amount (Tk.) Amount (Tk.) 2015 Advance for Operation , ,000 Deposit / Security money , ,875 Advance Tax paid and deducted at source ,410,802 13,809,972 Closing Balance as at ,694,537 14,179, ADVANCE FOR OPERATION : Tk. 163,860 The above balance has been arrived as at under : Amount (Tk.) Amount (Tk.) 2015 Security Money (UCBL) 163,860 - Mr. Md. Ebrahim Hossain - 200,000 CODEX - 50,000 Total : 163, ,000 24

27 8.02 DEPOSIT /SECURITY MONEY : Tk. 119,875 The above balance has been arrived as at under : Amount (Tk.) Amount (Tk.) 2015 Telephone and Telex 36,000 36,000 Green view filling & service station 5,000 5,000 DESA 21,800 21,800 Chittagong Club 5,000 5,000 Janata Bank Consultancy 10,000 10,000 Khulna Electric supply 2,250 2,250 Clean Towel 6,000 6,000 NPD, Jatiya Mahila Sangstha 33,180 33,180 DG,Non formal education Total : 119, , ADVANCE TAX PAID & DEDUCTED AT SOURCE : Tk. 11,410,802 The above balance has been arrived as at under : Amount (Tk.) Amount (Tk.) 2015 Advance Tax Deducted at Source ,982 Advance Tax Deducted at Source ,859,969 Advance Tax Deducted at Source ,738,787 Advance Tax Paid & Deducted at Source ,916,234 9,916,234 Advance Tax Deducted at Source ,494,568 - Total : 11,410,802 13,809, ADVANCE TAX DEDUCTED AT SOURCE (FY ) Amount (Tk.) Advance income tax for Fixed deposit 1,252,900 Advance income tax for vehicle 35,000 Advance income tax for Trade license Renewal fee 500 Advance income tax for Market Study(CDD) 55,250 Advance income tax for Market Survey (EPB) 119,880 Advance income tax for MIDAS Bank Accounts 31,038 Total : 1,494, PROJECT LOAN RECEIVABLE TK. 109,392 The above balance has been arrived as at under : Amount (Tk.) Amount (Tk.) 2015 USAID 42,676,580 46,848,089 MIDAS ( OWN-SED ) 3,242,760 6,771,251 MIDAS ( OWN-MIDI ) 4,195,123 4,195,123 50,114,463 57,814,463 Less : Loan Loss 50,005,071 57,705,071 USAID 42,676,580 46,848,089 MIDAS ( OWN-SED ) 3,242,760 6,771,251 MIDAS ( OWN-MIDI ) 4,085,731 4,085,731 Closing Balance as at , ,392 25

28 10.00 CASH & BANK BALANCE : Tk. 12,898,867 The above balance has been arrived as at under : Amount (Tk.) Amount (Tk.) 2015 Cash in hand ,000 30,000 Cash at bank ,868,867 7,182,029 Closing Balance as at ,898,867 7,212, CASH IN HAND : The breakup of the above amount is given below : Tk. 30,000 Amount (Tk.) Amount (Tk.) 2015 Petty Cash 30,000 30,000 Total : 30,000 30, CASH AT BANK Tk. 12,868,867 The above balance has been arrived as at under : Name of the Bank A/C No. Amount (Tk.) Amount (Tk.) 2015 Standard Bank Ltd, Dhaka STD ,501,959 6,035,611 Sonali Bank Ltd, Dhaka STD-161 1,244,720 15,325 UCBL, Dhaka STD ,188 1,131,093 Total : 12,868,867 7,182,029 The balances have been confirmed by the concerned bank statements and duly reconciled, wherever necessary CAPITAL FUND : Tk. 250,547,182 The above balance has been arrived as at under : Amount (Tk.) Amount (Tk.) 2015 Grants for project loan ,918,232 38,918,232 Grants for operation ,849,972 6,849,972 Revolving fund 204,778, ,078,978 Closing Balance as at ,547, ,847, GRANTS FOR PROJECT LOAN : Tk.38,918,232 The above balance has been arrived as at under : Amount (Tk.) Amount (Tk.) 2015 USAID 37,421,631 37,421,631 SWISS Development Corporation 299, ,850 The Asia Foundation (TAF ) 1,196,751 1,196,751 Total : 38,918,232 38,918, GRANTS FOR OPERATION : Tk. 6,849,972 The above balance has been arrived as at under : 26 Amount (Tk.) Amount (Tk.) 2015 Asset Acquisition 5,652,091 5,652,091 Ford Foundation ( FF ) 1,197,881 1,197,881 Total : 6,849,972 6,849,972

29 12.00 OTHER CURRENT LIABILITIES : Tk. 18,139,296 The above balance has been arrived as at under : Amount (Tk.) Amount (Tk.) 2015 Opening Balance as at ,899,296 1,899,296 Add: Addition during the year - 22,000,000 23,899,296 23,899,296 Less: Recovered during the year 5,760,000 - Closing Balance as at ,139,296 23,899,296 The breakup of the above amount is given below : Amount (Tk.) Amount (Tk.) Recovery pending decision (project) 3,170,000 3,170,000 Clearing Account (1,270,704) (1,270,704) Deferred income 16,240,000 22,000,000 Total : 18,139,296 23,899, DONATION Tk. 469,952 The balance is carried over since long. Detailed particular of the balance is not available with the management ACCUMULATED SURPLUS/ ( DEFICIT ) : Tk. 235,833,513 The above balance has been arrived as at under : Amount (Tk.) Amount (Tk.) 2015 Opening Balance as at ,381, ,250,714 Net Surplus / ( Deficit ) for the Year 451,757 45,131,042 Closing Balance as at ,833, ,381, OPERATIONAL INCOME : Tk. 21,982,024 The breakup of the above amount is given below : Amount (Tk.) Amount (Tk.) 2015 Studies and Research 12,818,691 7,518,394 Training Income 7,508,462 30,014,334 Sale of Publications 1,313,681 1,600,023 Bank Interest 310, ,565 Interest of Staff welfare loan 30, ,419 Total : 21,982,024 39,447, OPERATIONAL EXPENSES : Tk. 22,256,570 The breakup of the above amount is given below : Amount (Tk.) Amount (Tk.) 2015 Project Monitoring - - MIDI - - Studies & Research 12,513,940 9,894,152 Training 7,359,305 14,187,647 Information 2,383,325 3,235,921 Total : 22,256,570 27,317,720 27

30 Detailed Statement of the above amount is given in Annexure -B ADMINISTRATIVE EXPENSES : Tk. 11,803,497 The breakup of the above amount is given below : Amount (Tk.) Amount (Tk.) 2015 Salaries and Allowances 6,542,664 4,648,444 Support Staff Salaries - 130,597 Staff Welfare 626, ,383 Staff Travel 4,000 18,650 Newspaper and periodicals 5,167 4,518 Entertainment Expenses 4,996 78,350 Business Promotion and Development 35, ,649 Over time 15,571 34,057 Vehicle Fuel & CNG 205,794 82,162 Vehicle Servicing and Repairs 86,446 59,531 Office Repair and Maintenance 64,664 65,490 MIDAS Centre Common Service Charge 141, ,585 Training Seminar & W/Shop 92,070 35,000 Office Stationeries 93, ,402 Office Printing 103, ,337 Director's Fees & VAT thereon 206, ,750 Legal Fees and Expenses 57,850 34,500 Internet Expenses 55,375 50,538 Utility Expenses 505, ,103 Postage and Telegram 6,795 16,834 Telephone and Telex 84, ,611 Medical Expenses 155,235 96,320 Advertisement 37,260 20,000 Membership & Subscription - 6,400 Annual Picnic 218, ,709 Insurance of Equipment 42,376 25,287 Audit Fee 43,750 40,250 Depreciation on Fixed Assets 411, ,554 Conveyance 8,653 10,083 Bank Charge 43,232 41,517 Interest Expenses - 2,894,667 Fees and Renewal 248, ,890 Share Sales Commission & others - 639,081 NBR Tax Expenses 1,657,587 - Misc. Expenses - 7,458 Govt. Duty, VAT and license - 6,800 Total : 11,803,497 11,076, NON - OPERATIONAL INCOME : Tk. 12,529,800 The breakup of the above amount is given below : 28 Amount (Tk.) Amount (Tk.) 2015 Interest Income on fixed deposit ( Annexure-C) 12,529,000 14,076,034 Gain on Sales of Shares - 30,000,000 Membership fees 800 1,400 Miscellaneous Income Total : 12,529,800 44,077,534

31 MICRO INDUSTRIES DEVELOPMENT ASSISTANCE AND SERVICES (MIDAS) FIXED ASSETS SCHEDULE AS AT JUNE 30, Annexure - A Sl. No. Opening Balance as at Addition during the year Cost Adjustment during the year Disposal during the year Closing Balance as at Rate of dep. Opening Balance as at Depreciation Written Charged during the year Adjustment during the year Closing Balance as at Down Value as at Office Furniture 3,030, ,030,902 10% 2,013, ,772-2,114, ,945 2 Office Equipment 6,911,591 69,825 3 Electrical Equipment 1,910, ,981,416 10% 6,141,384 84,003-6,225, ,029-1,910,935 15% 1,816,926 14,101-1,831,027 79,908 4 Training Equipment 775,140 37,232-5 Vehicle 4,133, Interior Decoration 2,043, Books 251, Other Asset 236, Current year Total : 19,292, , ,372 10% 215,101 59, , ,544-4,133,000 20% 3,190, ,425-3,379, ,700-2,043,098 10% 1,254,095 78,900-1,332, , ,732 30% 251, , ,022 30% 234, , ,399,477 15,117, ,370-15,645,220 3,754,257 Previous year ,097, , ,292,420 14,179, ,725-15,117,849 4,174,571 Annual Report 29

32 30 MICRO INDUSTRIES DEVELOPMENT ASSISTANCE AND SERVICES (MIDAS) STATEMENT OF OPERATIONAL EXPENSES For the Year Ended on JUNE 30, Annexure - B Annual Report Sl.No. Head of Expenses Project Monitoring MIDI Study and Research Training Information Total 1 Salaries and Allowances - - 3,376, ,052 1,313,269 5,550,942 2 Staff Welfare , , , ,471 3 Cost of Publications , ,058 4 Staff travel perdium ,547 30, ,747 5 Market Survey Expenses ,212,942-1,212,942 6 Refreshment Expenses ,558-31,558 7 Field Transportation cost , , ,000 8 Support Staff Allowances , , ,667 9 Survey Refreshment , , Training Refreshment , , Participants allowance - - 1,078,079 1,816,430-2,894, Training Materials & others , , Refreshment Mat. & Publication Newspaper and periodical - - 5,088 5,088 3,085 13, Entertainment Expenses ,965 48,735 12, , Business Promotion and Development ,085 13,066 6,532 45, Over time - - 9,878 2,630 2,998 15, Vehicle Fuel & CNG , , , , Vehicle Servicing and Repairs ,822 2, , Office Repair and Maintenance , , MIDAS Centre Common Service Charge ,861 94,861 44, , Training & Study Seminar & W/Shop , , , Office Stationeries ,251 16,860 4,717 67, Office Printing ,695 49, , Office Rent ,500-34, Internet Expenses ,500 32,250 6,505 73, Utility Expenses , ,491 84, , Postage and Telegram - - 5,758 5,758 13,453 24, Telephone and Fax ,804 12,130-34, Advertisement - - 4,600 4,600 2,300 11, Depreciation on Fixed Assets ,737 52,737 10, , Local Conveyance ,498 12,543 2,447 58, Fees and Renewal ,465 62,490 81, , ASSSRBP Study Expenses - - 5,141, ,141,854 Total Operational Expenses: ,513,940 7,359,305 2,383,325 22,256,570

33 MICRO INDUSTRIES DEVELOPMENT ASSISTANCE AND SERVICES (MIDAS) SCHEDULE OF FIXED DEPOSIT INVESTMENT AS AT JUNE 30, 2015 Annexure -C Principal amount Interest on fixed deposit Bank name Fixed deposit no Rate Opening Balance as at Addition Encashment during the during the year year Closing Balance as at Opening Balance as at Interest received during the year Encashment during the year Tax and Excise duty Closing Balance as at Remarks MIDAS Financing Ltd 951/ % 113,900, ,900,000-12,529,000 11,261,100 1,267,900 - One year Total 113,900, ,900,000-12,529,000 11,261,100 1,267,900 - Note : Breakdown (Income Tax and Excise duty): Amount Tk. Income tax 1,252,900 Excise duty 15,000 1,267,900 Annual Report 31

34 Micro Industries Development Assistance and Services (MIDAS) Registered Office: MIDAS Centre (11 th Floor), Plot 5, Road 16 (Old 27) Dhanmondi, Dhaka-1209, Bangladesh Proxy Form I....of..... being a Member of Micro Industries Development Assistance and Services (MIDAS) do hereby appoint Mr./Ms./Mrs./Dr./Prof... of. as my proxy, to vote for me and on behalf at the Twenty Fourth Annual General Meeting of the Company to be held at 1.30 p.m. on Tuesday, December 20, and at any adjournment thereof. Signed this....day of..... Signature of the Proxy Signature of the Member 32

35 PUM-Netherlands assisting Bangladeshi Organizations under the TTPSDP of MIDAS Mr. R.A. Van Genus at Ibn Sina Imaging and Diagnostic Centre Mr. Huub Beckers at CORR the Jute Works Mr. Joham G Theodor Flint at MRECL Mr.Johan van den Berg, New Country Coordinator (Nepal and Bangladesh) at Max Foundation Glimpses of activities of Study and Research conducted by MIDAS Exchanging of document after signing the agreement between EPB and MIDAS for a consultancy assignment FGD with Jute Mill Officials in Khulna Audience of Study presentation by MIDAS at EPB Culvert constructed at Hijla Upzila, Barisal under ASSSRBP with the supervision of Design & Supervision Consultant

36 Deputy Governor of Bangladesh Bank Mr. S.K. Sur Chowdhury hands over the 'Certificate of Accreditation' to Dr.A.S.M.Mashi-ur-Rahman, Managing Director of MIDAS at Bangladesh Bank Conference Room on Tuesday, November 10, 2015 GOVERNMENT ALLIANCES Economic Relations Division (ERD), Ministry of Finance, Bangladesh Bank, Department of Agriculture Extension, Ministry of Agriculture of Bangladesh Government, Export Promotion Bureau, Local Government Engineering Department Register of Joint Stock Companies and Firms, NGO Affairs Bureau, Prime Minister's Office KNOWLEDGE PARTNER INSTITUTIONAL CLIENTS MICRO INDUSTRIES DEVELOPMENT ASSISTANCE AND SERVICES (MIDAS) MIDAS Centre (11th Floor) Plot 5 Road 16 (New) (Old 27) Dhanmondi Dhaka 1209 Bangladesh T: , , M: F: midas@midas.org.bd