CHAPTER 1 INTRODUCTION

1.1 INTRODUCTION
ABOUT THE STUDY Internship training program is vital and essential part of the educational curriculum which helps students to know how the organisation functions and also to know how various interrelated departments work together to achieve their common goal and it also helps the students to have a particular exposure to the problem faced, functions, of the department and their operation. This is generally meant to develop students aptitude towards business environment practically. The main purpose of this study is to examine the functioning of various depts. Non-Governmental Organization (NGO) A non-governmental organization (NGO) is basically a legally constituted organization which is operated by legal persons who act independently from any government. In those cases where the NGOs are funded partially or completely by governments, the NGO barred the government representatives from any membership in the organization in order to sustain its non-governmental status. The term is used for those organizations which have wider social target with political aspects. However, any NGO cannot be blatantly political organizations. The term non-governmental organization has no agreed legal definition and these are termed as civil society organizations in many jurisdictions. Across the world, the number of internationally operating NGOs is around 40,000. The number of national NGO in countries is even higher with around 1-2 million NGOs in India and 277,000 NGOs in Russia. The remodelling processes of the welfare state have led to the rapid development of the non-governmental sector in western countries. With increasing globalization, the intensity of such processes has increased further. In the 20th century, the Globalization makes the people understand the importance of NGOs. There are many problems which could not be solved effectively within a country. The international bodies at a global level including international organizations like World Trade Organization were considered to be too centred to favour the interests of capitalist firms. The growth and rise of NGO is seen as an attempt to offset this trend, where NGO emphasize the core issue related to human cause like sustainable development, developmental aid and other humanitarian issues. One such remarkable example of organization for raising the cause of

people is World Social Forum. This organisation is an opponent convention to the World Economic Forum. In some cases, it represents the popular movements of the poor and other ways, it is regarded as an aristocratic form of politics.

1.2 INDUSTRY PROFILE NON-GOVERNMENTAL ORGANIZATION Non-governmental organizations (NGOs) are legally constituted corporations created by natural or legal people that operate independently from any form of government. The term originated from the United Nations, and normally refers to organizations that are not a part of a government and are not conventional for-profit businesses. In the cases in which NGOs are funded totally or partially by governments, the NGO maintains its non-governmental status by excluding government representatives from membership in the organization. In the United States, NGOs are typically non profit organizations. The term is usually applied only to organizations that pursue wider social aims that have political aspects, but are not openly political organizations such as political parties. The number of NGOs operating in the United States is estimated at 1.5 million. Russia has 277,000 NGOs India is estimated to have had around 3.3 million NGOs in 2009, just over one NGO per 400 Indians, and many times the number of primary schools and primary health centres in India.

DEFINITION OF NGOs A non-governmental organization (NGO) is any non-profit, voluntary citizens' group which is organized on a local, national or international level. Task-oriented and driven by people with a common interest, NGOs perform a variety of service and humanitarian functions, bring citizen concerns to Governments, advocate and monitor policies and encourage political participation through provision of information. Some are organized around specific issues, such as human rights, environment or health. They provide analysis and expertise, serve as early warning mechanisms and help monitor and implement international agreements. Their relationship with offices and agencies of the United Nations system differs depending on their goals, their venue and the mandate of a particular institution.

NGOs are difficult to define and classify, and the term 'NGO' is not used consistently. As a result, there are many different classifications in use. The most common NGOs use a framework that includes orientation and level of operation. An NGO's orientation refers to the type of activities it takes on. These activities might include human rights, environmental, or development work. An NGO's level of operation indicates the scale at which an organization works, such as local, regional, international or national. One of the earliest mentions of the term "NGO" was in 1945, when the United Nations (UN) was created. The UN, which is an inter-governmental organization, made it possible for certain approved specialized international non-state agencies - or non-governmental organizations - to be awarded observer status at its assemblies and some of its meetings. Later the term became used more widely. Today, according to the UN, any kind of private organization that is independent from government control can be termed an "NGO", provided it is not-profit, non-criminal and not simply an opposition political party.

TYPES OF NON-GOERNMENTAL ORGANIZATIONS NGO types can be understood by their orientation and level of cooperation. NGO type by level of orientation:

Charitable Orientation often involves a top-down paternalistic effort with little participation by the "beneficiaries". It includes NGOs with activities directed toward meeting the needs of the poor.

Service Orientation includes NGOs with activities such as the provision of health, family planning or education services in which the programme is designed by the NGO and people are expected to participate in its implementation and in receiving the service.

Participatory Orientation is characterized by self-help projects where local people are involved particularly in the implementation of a project by contributing cash, tools, land, materials, labour etc. In the classical community development project, participation begins with the need definition and continues into the planning and implementation stages.

Empowering Orientation aims to help poor people develop a clearer understanding of the social, political and economic factors affecting their lives, and to strengthen their

awareness of their own potential power to control their lives. There is maximum involvement of the beneficiaries with NGOs acting as facilitators. NGO type by level of cooperation:

Community-based Organizations (CBOs) arise out of people's own initiatives. They can be responsible for raising the consciousness of the urban poor, helping them to understand their rights in accessing needed services, and providing such services.

Citywide Organizations include organizations such as chambers of commerce and industry, coalitions of business, ethnic or educational groups, and associations of community organizations.

National

NGOs include

national

organizations

such

as

the Red

Cross, YMCAs/YWCAs, professional associations, etc. Some have state and city branches and assist local NGOs.

International NGOs range from secular agencies such as Redda Barna and Save the Children organizations, OXFAM, CARE, Ford Foundation, and Rockefeller

Foundation to religiously motivated groups. They can be responsible for funding local NGOs, institutions and projects and implementing projects. Apart from "NGO", there are many alternative or overlapping terms in use, including: third sector organization (TSO), non-profit organization (NPO), voluntary organization (VO), civil society organization (CSO), grassroots organization (GO), social movement organization (SMO), private voluntary organization (PVO), self-help organization (SHO) and non-state actors (NSAs). Non-governmental organizations are a heterogeneous group. As a result, a long list of additional acronyms has developed, including:

BINGO: 'Business-friendly International NGO' or 'Big International NGO' TANGO: 'Technical Assistance NGO' TSO: 'Third Sector Organization' GONGO: 'Government-Operated NGOs' (set up by governments to look like NGOs in order to qualify for outside aid or promote the interests of government)

DONGO: 'Donor Organized NGO' INGO: 'International NGO'

QUANGO: 'Quasi-Autonomous NGO,' such as the International Organization for Standardization (ISO). (The ISO is actually not purely an NGO, since its membership is by nation, and each nation is represented by what the ISO Council determines to be the 'most broadly representative' standardization body of a nation. That body might itself be a nongovernmental organization; for example, the United States is represented in ISO by the American National Standards Institute, which is independent of the federal government. However, other countries can be represented by national governmental agencies; this is the trend in Europe.)

National NGO: A non-governmental organization that exists only in one country. This term is rare due to the globalization of non-governmental organizations, which causes an NGO to exist in more than one country.

CSO: 'Civil Society Organization' ENGO: 'Environmental NGO,' such as Greenpeace and WWF NNGO: 'Northern NGO' PANGO: 'Party NGO,' set up by parties and disguised as NGOs to serve their political matters.

SNGO: 'Southern NGO' SCO: 'Social Change Organization' TNGO: 'Transnational NGO.' The term emerged during the 1970s due to the increase of environmental and economic issues in the global community. TNGO includes nongovernmental organizations that are not confined to only one country, but exist in two or more countries.

GSO: Grassroots Support Organization MANGO: 'Market Advocacy NGO' NGDO: 'Non-governmental Development Organization'

USAID refers to NGOs as private voluntary organizations. However, many scholars have argued that this definition is highly problematic as many NGOs are in fact state and corporate funded and managed projects with professional staff. NGOs exist for a variety of reasons, usually to further the political or social goals of their members or founders. Examples include improving the state of the natural environment, encouraging the observance of human rights, improving the welfare of the disadvantaged, or representing a corporate agenda. However, there are a huge number of such organizations and

their goals cover a broad range of political and philosophical positions. This can also easily be applied to private schools and athletic organizations. Development, Environment and Human Rights NGOs NGOs are organizations that work in many different fields, but the term is generally associated with those seeking social transformation and improvements in quality of life. Development NGOs are the most highly visible sector, and includes both international and local organizations, as well as those working in humanitarian emergency sector. Many are associated with international aid and voluntary donation, but there are also NGOs that choose not to take funds from donors and try to generate funding in other ways, such as selling handicrafts or charging for services. Environmental NGOs are another sub-sector, and sometimes overlap with development NGOs. An example is Greenpeace. Just like other NGOs networks, transnational environmental networks might acquire a variety of benefits in sharing information with other organizations, campaigning towards an issue, and exchanging contact information. Since transnational environmental NGOs advocate for different issues like public goods, such as pollution in the air, deforestation of areas and water issues, it is more difficult for them to give their campaigns a human face than NGOs campaigning directly for human rights issues. Some of the earliest forms of transnational environmental NGOs started to appear after the Second World War with the creation of the International Union for the Conservation of Nature and Natural Resources (IUCN). After the UN was formed in 1945, more environmental NGO started to emerge in order to address more specific environmental issues. In 1946, the UN Educational, Scientific, and Cultural Organization (UNESCO) was created with the purpose of advocating and representing scientific issues and collaboration among environmental NGOs. In 1969, the Scientific Committee on Problems of the Environment (SCOPE) was funded to increase and improve collaboration among environmentalists. This collaboration was later reinforced and stimulated with the creation of UNESCO's Man and the Biosphere Program in 1971. In 1972, the UN Conference on the Human Environment in Stockholm, tried to address the issues on Swedens plead for international intervention on trans-boundary pollution from other European industrialized nations.

ACTIVITIES There are also numerous classifications of NGOs. The typology the World Bank uses divides them into Operational and Advocacy: NGOs vary in their methods. Some act primarily as lobbyists, while others primarily conduct programs and activities. For instance, an NGO such as Oxfam, concerned with poverty alleviation, might provide needy people with the equipment and skills to find food and clean drinking water, whereas an NGO like the FFDA helps through investigation and documentation of human rights violations and provides legal assistance to victims of human rights abuses. Others, such as Afghanistan Information Management Services, provide specialized technical products and services to support development activities implemented on the ground by other organizations. NGOs were intended to fill a gap in government services, but in countries like India, NGOs are gaining a powerful stronghold in decision making. In the interest of sustainability, most donors require that NGOs demonstrate a relationship with governments. State Governments themselves are vulnerable because they lack strategic planning and vision. They are therefore sometimes tightly bound by a nexus of NGOs, political bodies, commercial organizations and major donors/funders, making decisions that have short term outputs but no long term affect. NGOs in India are under regulated, political, and recipients of large government and international donor funds. NGOs often take up responsibilities outside their skill ambit. Governments have no access to the number of projects or amount of funding received by these NGOs. There is a pressing need to regulate this group while not curtailing their unique role as a supplement to government services. Operational Operational NGOs seek to "achieve small-scale change directly through projects." They mobilize financial resources, materials and volunteers to create localized programs in the field. They hold large-scale fundraising events; apply to governments and organizations for grants and contracts in order to raise money for projects. They often operate in a hierarchical structure; with a main headquarters staffed by professionals who plan projects, create budgets, keep accounts, report, and communicate with operational fieldworkers who work directly on projects Operational NGOs deal with a wide range of, but are most often associated with the delivery of services and welfare, emergency relief and environmental issues. Operational NGOs can be further categorized, one frequently used categorization is

the division into relief-oriented versus development-oriented organizations; they can also be classified according to whether they stress service delivery or participation; or whether they are religious or secular; and whether they are more public or private-oriented. Operational NGOs can be community-based, national or international. The defining activity of operational NGOs is implementing projects. Campaigning Campaigning NGOs seek to "achieve large-scale change promoted indirectly through influence of the political system." Campaigning NGOs need an efficient and effective group of professional members who are able to keep supporters informed, and motivated. They must plan and host demonstrations and events that will keep their cause in the media. They must maintain a large informed network of supporters who can be mobilized for events to garner media attention and influence policy changes. The defining activity of campaigning NGOs is holding demonstrations. Campaigning NGOs often deal with issues relating to human rights, women's rights, children's rights. The primary purpose of an Advocacy NGO is to defend or promote a specific cause. As opposed to operational project management, these organizations typically try to raise awareness, acceptance and knowledge by lobbying, press work and activist event.

CORPORATE STRUCTURE OF NGO Staffing Some NGOs are highly professionalized and rely mainly on paid staff. Others are based around voluntary labour and are less formalized. Not all people working for nongovernmental organizations are volunteers. Many NGOs are associated with the use of international staff working in 'developing' countries, but there are many NGOs in both North and South who rely on local employees or volunteers. There is some dispute as to whether expatriates should be sent to developing countries. Frequently this type of personnel is employed to satisfy a donor who wants to see the supported project managed by someone from an industrialized country. However, the expertise these employees or volunteers may be counterbalanced by a number of factors: the cost of foreigners is typically higher, they have no grass root connections in the country they are sent to, and local expertise is often undervalued. The NGO sector is an essential employer in terms of numbers. For example, by the end of 1995, CONCERN worldwide, an international Northern NGO working against poverty, employed 174 expatriates and just over 5,000 national staff working in ten developing countries in Africa and Asia, and in Haiti. Funding Whether the NGOs are small or large, various NGOs need budgets to operate. The amount of budget that they need would differ from NGOs to NGOs. Unlike small NGOs, large NGOs may have annual budgets in the hundreds of millions or billions of dollars. For instance, the budget of the American Association of Retired Persons (AARP) was over US$540 million in 1999. Funding such large budgets demands significant fundraising efforts on the part of most NGOs. Major sources of NGO funding are membership dues, the sale of goods and services, grants from international institutions or national governments, and private donations. Several EU-grants provide funds accessible to NGOs. Government funding of NGOs is controversial, since, according to David Rieff, writing in The New Republic, "the whole point of humanitarian intervention was precisely that NGOs and civil society had both a right and an obligation to respond with acts of aid and solidarity to people in need or being subjected to repression or want by the forces that controlled them, whatever the governments concerned might think about the matter." Some

NGOs, such as Greenpeace do not accept funding from governments or intergovernmental organizations. Overhead costs Overhead is the amount of money that is spent on running an NGO rather than on projects. This includes office expenses,]salaries, banking and bookkeeping costs. What percentage of overall budget is spent on overhead is often used to judge an NGO with less than 10% being viewed as good. The World Association of Non-Governmental Organizations states that ideally more than 80% should be spent on programs (less than 20% on overhead). The Global Fund to Fight AIDS, Tuberculosis and Malaria has specific guidelines on how high overhead can be to receive funding based on how the money is to be spent with overhead often needing to be less than 5-7%. While the World Bank typically allows 10%. A high percentage of overhead to total expenditures can make it more difficult to generate funds. High overhead costs may also generate criticism with some claiming the certain NGOs with high overhead are being run simply to benefit the people working for them. While overhead costs can be a legitimate concern, a sole focus on them can be counterproductive. Research published by the Urban and the Centre for Social Innovation at Stanford University have shown how rating agencies create incentives for nonprofits to lower and hide overhead costs, which may actually reduce organizational effectiveness by starving organizations of the infrastructure they need to effectively deliver services. A more meaningful rating system would provide, in addition to financial data, a qualitative evaluation of an organizations transparency and governance: (1) An assessment of program effectiveness; (2) An evaluation of feedback mechanisms designed for donors and beneficiaries; (3) Such a rating system would also allow rated organizations to respond to an evaluation done by a rating agency. More generally, the popular discourse of non profit evaluation should move away from financial notions of organizational effectiveness and toward more substantive understandings of programmatic impact.

Indian NGOs Indian Non-governmental organizations (NGOs) can be set up under various Indian laws, and the different legal entities under which civil society organizations can register themselves are: Registered Societies Societies Registration Act, 1860 is a central act for registering not-for-profit organizations. Almost all the states in India have adopted the central Act for creating state level authorities for registering various types of not-for-profit entities.. According to the act any seven persons who subscribe to the Memorandum of Association (MOA) can register a society. The memorandum should include names of the society, its objectives, its names, addresses and occupations of the members subscribing to it as well as the first governing body to be constituted on registration. 1. Phool Kumari Devi Memorial Educational Society (Regd.). 2. Ashmita Samajik Punrutthan evam Vikas Samiti (Regd.) Public Trust Public trust can be created for public charitable purposes. There is no All India Level Act for setting up public charitable trusts. Some of the states in India has enacted the Public Charitable Trust Act, while most states in India does not have a trust act. An NGO can be created only under a public trust act. Madhya Pradesh and Rajasthan have independent state level public trust acts. States like West Bengal, Jharkhand and Bihar, do not have any act to register a public trust. A trust can be registered in one state, but the same has the scope to operate in any number of states. In the state of Maharashtra and Gujarat, all organizations that are registered as 'Society' are by default also registered as Public Trust. Private Trust A private trust, A created under and governed by the Indian Trusts Act of 1882, aims at managing assigned trust properties for private or religious purpose. A private trust does not enjoy the privileges and tax benefits that are available for public trusts or NGOs.

Non Profit Companies (Section 25) Conferring of corporate personality to associations that promote cultural and charitable objectives, but exempting them from the operation of some cumbersome requirements (which are essentially for regulation of business bodies but are difficult for compliance by non-profit companies), are the noteworthy features that are provided under the companies act, 1956. According to section 25(1): "Where it is proved to the satisfaction of the Central Government that an association is about to be formed as a limited company for promoting commerce, art, science, religion, charity or any other useful objectives, intends to apply its profits, if any, or other income in promoting its objectives, and to prohibit the payment of any dividend to its members, the Central Government may, by license, l direct that the association may be registered as a company with limited liability, without addition to its name of the word "Limited" or the words "Private Limited"

Comparison between a trust, a society and a section 25 company

Public Trust

Society

Section 25 Company

Public

Trust

Act Societies Public Registration Act of 1860

Statute/Legislation like Bombay Trust Act, 1950

Companies 1956

Act

of

Jurisdiction of the Concerned state where Concerned Act registered where registered

state Concerned state where registered

Charity Authority Commissioner/Deputy Registrar

Registrar Societies

of Registrar Companies

of

As Society (and by Registration As Trust default also as Trust As Section 25

in Maharashtra and Company Gujarat)

Memorandum Main Document Trust deed Association

of Memorandum and Articles

and of

Rules & Regulations Association.

Trust Stamp Duty

deed

to

be

No

stamp

paper No

stamp

paper for and of

executed a non-judicial stamp paper of

required Memorandum Association

for required of Memorandum and Articles

prescribed value

Rules & Regulations Association

Number of persons Minimum two trustees; Minimum seven, no Minimum three, no needed to register no upper limit upper limit upper limit

Board Management

of

Governing body or Board Trustees council/managing or Directors/Managing executive committee Committee

of

Mode of succession on board

Usually election by Usually election by of the members general body of the

of Usually by appointment members

management

general body

Co-operative Societies In India, cooperative societies are regarded as instruments to mobilize and aggregate community effort to eliminate layers of middlemen in any product or service supply chain hence resulting in greater benefit sharing for the grassroots farmer, worker or artisans. The Cooperative Credit Societies Act, 1904 enabled formation of cooperatives for supplying to farmers cheap credit and protect them from exploitation in the hands of the moneylenders. The cooperative act 1912 expanded the sphere of cooperation and provided for supervision by central organization.

Top 10 NGOs of India 1) Sammaan Foundation The purpose of establishing Sammaan foundation (Jan 25, 2007) was empowering the downtrodden and linking them with the main stream through education, training and financial support. More specifically, at the moment, Sammaan is working towards organizing the rickshaw-pulling class of people by providing them with opportunities to earn their livelihood. It is taking giant strides in areas like women empowerment, health services, employment generation, micro credit and childrens education. 2) Goonj Goonjs mission is to solve the clothing problems of the underprivileged. It was the recipient of the NGO of the year award in 2007 at the India NGO Awards. The various initiatives of Goong areVastra Samman Goonj believes that reusing old clothes can help solve the clothing problem of the poor. Not just a piece of cloth- Goonj has been striving to establish partnerships between rural and rich urban schools. Rahat Floods- Goonj initiates Rahat floods annually for collect relief material during floods to aid affected victims in West Bengal, Assam and Bihar. Rahat Winters- Similar to Rahat floods, Goonj initiates Rahat winters every year to solve the problem of winter clothing of the underprivileged. 3) Akshaya Trust The mission of Akshaya trust is to care for the helpless, forsaken, mentally ill, old, sick and the road side destitute who live in Madurai. This is accomplished by providing love and affection, healthy food, rehabilitation opportunities. Their sole aim is to restore human dignity. 4) Smile Foundation Formed in 2002, the Smile foundation comprises corporate professionals who had a target of providing universal education and healthcare services to the underprivileged thereby

changing their lives forever. They aim to set the foundation for nation building by making the downtrodden emerge as productive assets. 5) Udaan Welfare Foundation The Udaan Welfare foundation was formed with a mission to empower lives of the downtrodden. Their main areas of focus are children, destitute women, senior citizens and environment protection. Till date, they have launched various health and education initiatives involving children and destitute women. They even have a cancer chemotherapy centre as one of their main projects. 6) Pratham Pratham is one of the largest NGO which works towards educating the underprivileged children in the slums of Mumbai. Their team comprises people from various fields who expertly bring their experiences and own unique perspectives and work together to create a bright future for our children. The programs of Pratham are designed in such a way that enrolment of children in schools increases, their learning levels increase and those people who are unable to attend school receive education receive it in a proper manner. 7) LEPRA Society LEPRA society actively promotes quality health care through various initiatives. It aims to support various health programmes in the prevention and control of diseases like AIDS, Leprosy, and Tuberculosis etc. Their programmes are mainly focussed to communities which are poor comprising women and children. 8) Deepalaya Deepalaya is a development-based NGO which works on issues pertaining to the poor and the downtrodden, especially children. It has successfully made inroads into slums of Delhi and initiated rural development in Haryana and Uttarakhand. It works in collaboration with both governmental and non-governmental agencies and makes interventions in the states policy making. Their areas of focus include education, healthcare, and gender equality, vocational training, empowering other NGOs which have the same vision and upliftment of the differently-abled.

9) Uday Foundation Based in New Delhi, the Uday foundation provides support to the families of children suffering from critical disorders, congenital defects and other diseases and syndromes which affects their health, growth and education. It has launched various health related projects for the common man in general. Their special focus is child rights i.e. providing a right to live with dignity. It is more of a parents support group who tackle the problem of saving the lives of the future of our country. They also support research to develop new healthcare technologies. 10) HelpAge India HelpAge India, since its establishment in 1978 has constantly been striving to raise resources to protect the rights of senior citizens of our country. They are involved with the local and national government to implement policies which will be beneficial to the elderly. Their objective is to make the senior citizens aware of their rights so that they can play an active role in the society. To accomplish this, they are also working constantly to make the society aware of the concerns regarding the elderly and also promoting better understanding of similar issues.

HISTORY International non-governmental organizations have a history dating back to at least 1839. It has been estimated that by 1914, there were 1083 NGOs. International NGOs were important in the anti-slavery movement and the movement for women's suffrage, and reached a peak at the time of the World Disarmament Conference. However, the phrase "non-governmental organization" only came into popular use with the establishment of the United Nations Organization in 1945 with provisions in Article 71 of Chapter 10 of the United Nations Charter for a consultative role for organizations which are neither governments nor member states. The definition of "international NGO" (INGO) is first given in resolution 288 (X) of ECOSOC on February 27, 1950: it is defined as "any international organization that is not founded by an international treaty". The vital role of NGOs and other "major groups" unsustainable was recognized in Chapter 27 of Agenda 21, leading to intense arrangements for a consultative relationship between the United Nations and non-governmental organizations. It has been observed that the number of INGO founded or dissolved matches the general "state of the world", rising in periods of growth and declining in periods of crisis. Rapid development of the non-governmental sector occurred in western countries as a result of the processes of restructuring of the welfare state. Further globalization of that process occurred after the fall of the communist system and was an important part of the Washington. Globalization during the 20th century gave rise to the importance of NGOs. Many problems could not be solved within a nation. International treaties and international organizations such as the World Trade Organization were cantered mainly on the interests of capitalist enterprises. In an attempt to counterbalance this trend, NGOs have developed to emphasize humanitarian issues, developmental aid and sustainable development. A

prominent example of this is the World Social Forum, which is a rival convention to the World Economic Forum held annually in January in Davos, Switzerland. The fifth World Social Forum in Porto Alegre, Brazil, in January 2005 was attended by representatives from more than 1,000 NGOs. In terms of environmental issues and sustainable development, the Earth Summit in Rio in 1992 was the first to show the power of international NGOs, when about 2,400 representatives of NGOs came to play a central role in deliberations. Some have argued that in forums like these, NGOs take the place of what should belong to popular movements of the poor. Whatever the case, NGO transnational networking is now extensive.

LEGAL STATUS The legal form of NGOs is diverse and depends upon home-grown variations in each country's laws and practices. However, four main family groups of NGOs can be found worldwide: Unincorporated and voluntary association

Trusts, charities and foundations Companies not just for profit Entities formed or registered under special NGO or nonprofit laws

The Council of Europe in Strasbourg drafted the European Convention on the Recognition of the Legal Personality of International Non-Governmental Organizations in 1986, which sets a common legal basis for the existence and work of NGOs in Europe. Article 11 of the European protects the right to freedom of association, which is also a fundamental norm for NGOs. CRITIQUES Issa G. Shivji is one of Africa's leading experts on law and development issues as an author and academic. His critique on NGOs is found in two essays: "Silences in NGO discourse: The role and future of NGOs in Africa" and "Reflections on NGOs in Tanzania: What we are, what we are not and what we ought to be". Shivji argues that despite the good intentions of NGO leaders and activists, he is critical of the "objective effects of actions, regardless of their intentions". Shivji argues also that the sudden rise of NGOs is part of a neoliberal paradigm rather than pure altruistic motivations. He is critical of the current manifestations of NGOs wanting to change the world without understanding it, and that the imperial relationship continues today with the rise of NGOs. James Pfeiffer, in his case study of NGO involvement in Mozambique, speaks to the negative effects that NGO's have had on areas of health within the country. He argues that over the last decade, NGO's in Mozambique have "fragmented the local health system, undermined local control of health programs, and contributed to growing local social inequality" He notes further that NGO's can be uncoordinated, creating parallel projects among different organizations, that pull health service workers away from their routine duties in order to serve the interests of the NGO's. This ultimately undermines local primary health care efforts, and takes away the governments ability to maintain agency over their own health sector. J.

Pfeiffer suggested a new model of collaboration between the NGO and the DPS (the Mozambique Provincial Health Directorate). He mentioned the NGO should be 'formally held to standard and adherence within the host country', for example reduce 'showcase' projects and parallel programs that prove to be unsustainable. Jessica Mathews once wrote in Foreign Affairs in 1997: "For all their strengths, NGOs are special interests. The best of them ... often suffer from tunnel vision, judging every public act by how it affects their particular interest". Since NGOs do have to worry about policy trade-offs, the overall impact of their cause might bring more harm to society. Vijay Prashad argues that from the 1970s "The World Bank, under Robert McNamara, championed the NGO as an alternative to the state, leaving intact global and regional relations of power and production." Others argue that NGOs are often imperialist in nature, that they sometimes operate in a radicalized manner in third world countries, and that they fulfil a similar function to that of the clergy during the high colonial era. The philosopher Peter Hallward argues that they are an aristocratic form of politics. He also points to the fact that NGOs like Action Aid and Christian Aid "effectively condoned the [2004 US backed] coup" against an elected in government in Haiti and argues that they are the "humanitarian face of imperialism."Popular movements in the global South such as, for instance, the Western Cape Anti-Eviction Campaign in South Africa have sometimes refused to work with NGOs arguing that this will compromise their autonomy. It has also been argued that NGOs often disempowered people by allowing funders to push for stability over social justice. Another criticism of NGOs is that they are being designed and used as extensions of the normal foreign-policy instruments of certain Western countries and groups of countries. Russian President Vladimir Putin made this accusation at the 43rd Munich Conference on Security Policy in 2007, concluding that these NGOs "are formally independent but they are purposefully financed and therefore under control." Also, Michael Bond wrote "Most large NGOs, such as Oxfam, the Red Cross, Cafod and Action Aid, are striving to make their aid provision more sustainable. But some, mostly in the US, are still exporting the ideologies of their backers." Indeed, whether the NGOs are adding for evangelical purposes or their ideological intentions, various NGOs are examined and accused of their nature. There has also been the overwhelming disaster of NGOs using white lies or misinformed advise to enact their campaigns. In other words, NGOs have been quite ignorant about critical

issues because, as chief scientist at Greenpeace Doug Parr claims, these organizations have lost their efforts in being truly scientific and are now more self-interested. Rather than operating through science so as to be rationally and effectively practical, NGOs are now abusing the utilization of science in order to gain their own advantages. In the beginning, as Parr indicated, there was "'a tendency among our critics to say that science is the only decision-making tool . . . but political and commercial interests are using science as a cover for getting their way.'" At the same time, NGOs have shown themselves not to be very cooperative with other groups, as the previous policy-maker for the German branch of Friends of the EarthJens Katjek acknowledged. "If NGOs want the best for the environment, he says, they have to learn to compromise."

1.3 COMPANY PROFILE

Hundreds of children run away from homes every day. Approximately 70,000 children land on the platform in India per year. The reason could be as trivial as playing truant from school or even romanticizing the journey like the movies to make it big in the city and only in few cases the reason could be as grave as physical abuse or extreme poverty.

Soon they adapt to the platform life; often after being pushed around before being accepted in the gang. They may even find a source of income through scavenging sweeping or begging. The vagaries of platform life suck them into a vortex and they succumb to addiction, disease and criminal influences. The platform becomes their home.

The platform child never grows up..he just ages!!!

SATHI (*Society for Assistance to Children in Difficult Situation) is a non-profit organization. History

It was started in 1992, but formally registered in the year 1997 at Raichur and the main office is in Bangalore. SATHI works with children on the railway platforms. It rescues them from the vagaries of the platform life and provides shelter and care till the time the child is returned home safely. The core activity of SATHI is home placement. Its operations are spread across the major junctions of India viz. Kanpur, Mughalsarai, Gorakhpur, Allahabad, Ahamadabad, Pune, New Delhi, Hyderabad, Tirupati, Yeshwantpur, Bangalore and Hubli. SATHI was an unplanned outcome of a well-intended intention. It started as one womans dream to take care of the underprivileged children. For want of clear geographic identification of the problem and for keeping the number of children from poor localities at manageable number, it was suggested that it work with children seen on platform, as the SNDT at Pune was doing. In 92-93, the office was used as a shelter as it was very difficult to find a good place for a shelter.

The choices were dismal as the only available space was near a big gutter, which could not be used as a home for the children. SATHI felt that it must provide protection, good food, shelter and a sense of belonging to the runaway children. That year, it rescued 30- 40 children. In 93-94, it started recreational activities like picnics and other organized games to cheer them up and build rapport with them.

In 94-96 SATHI attempted a skill development program by giving them cycle-repair training. But the job placements failed. A family adopted one child but SATHI realized that the children have their own families, and have not been abandoned by the family but it is the child who has opted to flee because of certain reasons (which in most cases is not very serious) without actually thinking of the consequences.

SATHI addresses these issues and helps in restoring the family structure. It has been found that the parents are distraught when the child leaves and search for him, often without any

leads. SATHI repatriates the children with sensitivity and in most cases the child is happy to be home, where he belongs. SATHIs initial attempts at organizing camps were green. Ma ya, an NGO from Bangalore helped in organizing camps in the outskirts of the city. By 1998-2000 it started extensive home placement and working with government observation homes. It also started camps for the children. The camps were conducted along the principles drawn out by Dr Shekhar Sheshadri, Head of Dept. of Child Psychiatry, NIMHANS, Father George KoleshaniBOSCO.

In 2000-02 it extended the work to Pune. The camps took shape and were well structured and the all the childrens cases were documented. It worked extensively with many government homes and helped 700children in a year.

Till this time, enough work was done on home placement, conducting camps and documents like child profile, data analysation, listed out reasons for children leaving home, case histories etc. It was a time to cross verify about the children retention level.

This we did and the result was 80% of the children stayed back at home in 98-2000. On this base, Sathi got confidence on home placement activities and wanted to spread the activities by collaboration with other organizations.

The collaboration also worked in helping more number of children in 2003. By 2004 it started collaborating with other Ngos, propagating our concept of home placement, strengthening functionaries of CWC, study on emerging issues of children, research on platform childrens issues and behaviour with research institutions like TISS, NIHMAS, etc.

Vision Create a safe, secure and nurtured environment for runaway and separated children within the child protection system, from the grassroots to national level, so that the child may develop holistically with self-confidence, self worth and dignity.

Mission

Create a safe and secure environment for runaway children picked from railway platforms, in Sathis shelters, Government Homes, Institutions and other NGO shelters, to protect the child form neglect and abuse.

Reunite the runaway or separated child with family, and address the causes that had caused the child to run away to prevent them from running away again, as the family in the best place for a child.

Track reunited children for a limited period of time to assess and encourage their integration with the family.

Facilitate the child protection system from the grassroots to national level with a view to rehabilitate children with their families.

Generate and share practice-based knowledge related to runaway and separated children, within the child protection system, so as to improve interventions in the interest of rehabilitating the child with family.

Implement the best practices related to quality rehabilitation of children with their families, and to facilitate the implementation of these practices by the State and NGO sector working on the issue of runaway and separated children.

Facilitate the engagement of civil society with the State on issues related to runaway and separated children.

VALUES THAT GUIDE SATHIS PROGRAMS

Non-negotiable 1. Transparency, integrity and honesty form the basis of relationship with all stakeholders. 2. No discrimination on the basis of caste, class, gender, religion, region, and ethnicity. 3. No indecent, violent behaviour with children Respect for the perceptions, feelings and right of children.

4. Upward, downward and horizontal accountability.

Other values 1. No indecent, violent behaviour in the organization. 2. Maintain professional relationship with all including children. 3. Openness to learning from field experiences. 4. Openness to sharing of data and knowledge with others. 5. Utilization of resource for developing resource and not for obtaining infrastructure and property. 6. Tam work is required in the interest of child. 7. Respect for change efforts by other organizations in the interest of child 8. Concern for the welfare of staff members. 9. Actively promoting the participation of staff members in program decision making. 10. Promoting internal reflection and questioning on the issues related to children on the street and their rehabilitation, so as to create practice based knowledge. 11. Recognition of the need for civil society to engage with issues pertaining to railway or street children along with the state.

Future outlook by 2015

1. Big Jump in Helping Children: We estimate that the total number of children may be helped for the next 5 years is 25000 children, 5000 children per year. This figure is achievable due to expansion and collaboration. 2. De-addiction & Home Orientation Camps: More importance will be given in organizing camps in North India because the NGOs still do not have positive feeling on holding the children for 1 month and organizing the camps. Large number of addicted children is too found in the North India. We plan to organize 50 camps. 3. Covering 50 locations: From the past a few years collaboration was at 25 locations. The outcome from this collaboration is yielding desired results. The collaboration concept is good, as small organization also gets an opportunity to grow and also large number of children can also be helped. In this context, Sathi is willing to expand for additional 25 locations. The total location will be 50.

4. With draw support by end of 2014-2015: After having collaboration at 50 locations, support in terms of monetary, field assistance etc will be completely with drawn from collaboration at end of the 5 years and make the collab NGOs capable to run the project independently. 5. State level Debate on Home Placement & Child Growth: A study will be organized through NIMHANS or from a reputed institute on the above concept with the objective of developing and bringing a change in the perception about the home placement. 6. Child Development Institute: After 5 years, Sathi has dream of becoming a resource organization on Child Issues of platform children. We will develop lot of materials on counselling, child behaviour, camp activities manual, preparing hand book for early intervention, process of home placement, address locating, and quality of home placement and on other various aspects. 7. Sathi Nodal Agency: Sathi has a capacity to play the role like Project assessment, staff capacity building; linking funders for collaboration NGOs, able to do research on child related issues. It likes to be nodal agency between the funders and NGOs. 8. Invitation for More Volunteers: Sathi pays visits to the Management College, Dept of Social Work and other universities and make a presentation on Sathi and creates interest among the students that they are welcomed to Sathi for doing their internship program or doing any kind of research work in Sathi. At the end of the 5 years, Sathi is expecting at least 15 volunteers will be associated with us. 9. Does Home placement Coincides with Child Rights:

The organizations working with the children seen on the railway platform is a national based project because there are many major railway stations situated. We found the organizations working on all these major railway stations to help the children and also on the issues of Child Rights. Sathi feels that Home placement of children coincides with Child Rights. This can be addressed to the organization by hold workshops at Bangalore, Mumbai, New Delhi and other major cities.

Core Group

A core group was formed to coordinate activities of SATHI at macro level. This was necessary as the organization had grown quite large and the staffs were working at diverse locations. The core group members meet at least once in every three months. Crucial issues like planning, monitoring work expansion, staff training, and evaluation are discussed at the meetings. The core group members are the interface between the field staff and the management.

Members of the core group: Sl. No Name Mr. 1 Pramod Kulkarni Mr. 2 Basavaraj Shali 3 Mr. Rajshekhar Ms. 4 Shweta Hegde Mr. 5 Romal Sinha 6 Mr. Rangapppa Mr. 7 Kamalesh Pandey 8 Mr. Abrar Dy. Secretary Program Officer Program Officer Secretary Bangalore 9845456767 Pramodkulkarni4@gmail.com Designation Place work of Contact number & email ID

Bangalore

9448388257 Bshali.sathi@gmail.com

Bangalore

9483518257 rajashekharsathi@gmail.com

Pune

8762455001 shweta.hegde05@gmail.com

Program Officer Cocoordinator Cocoordinator Cocoordinator

UP

8197233088romalsinha@gmail.com

Bangalore

9443470664 nsr.nag@gmail.com

Luck now

9621672916kamleshpandeysathi@gmail.com

Patna

8540874226 mdabrar222@gmail.com

Mr. 9 Rajesh Kumar Saini 10 Mr. Ram Mishra Mr. 11 Adarsh Tripati 12 Mr. Vinodh P Cocoordinator HR Executive Delhi 07827281334 rammishra878@gmail.com Cocoordinator Delhi 9953256425 rajesh.saini93@gmail.com

Delhi

9990387967adarshtripathi@sathiindia.org

Accountant

Bangalore

7411575993 vinodhpavi@gmail.com

SATHI Bangalore The lessons SATHI has learned One of the major learnings for SATHI is that early intervention is the best for the child who is lost or who has left home to look for alternative life. Early intervention is also likely to be more effective if the child continues to live in a caring environment after being reunited with family.

As research and practice shows, family is the best place for the child. While addressing the immediate cases of children coming to the railway platforms and streets, and through their intensified efforts at family reunification, supporting children through education, counselling and other support to the families, SATHI has learnt that it is equally important to prevent and address the issues related to children, before the children come to the streets. In this regard, family counselling together with physical support has been a useful investment.

SATHI has also learnt that counselling is not merely about talking to the child, but it is about engaging the child actively using various techniques to support the child in his/her decision making about himself and the desire to go back to the family.

Use of engagement techniques has helped the staff to understand the children and their likes and dislikes better. Investing in a professional counsellor and supporting the staff to practice

empathy, to observe and analyse childs talk and behaviour has been a tremendous boost in the reintegration process. The efforts taken at SATHI to reach out to a large number of number of children, and the impact of these efforts would have been limited if they had not actively involved and worked with various stakeholders, which include railway authorities, Government homes, other NGOs and community members on the platforms and in villages. A good number of children directly come in contact with informed people and railway authorities; and are referred to temporary institutions. Some of the children are even reunified back with their families by these informed people and railway authorities. A higher level of public awareness and networking is essential in making SATHIs work sustainable in the long run. In this regard the key stakeholders involved are railway police, vendors at the railway station platforms, government home staff and CWC members with whom SATHI needs to continue to work on a sustained basis.

Sathi has also learnt that organising camps is a good model for children who repeatedly run away from home. There is a huge transformation in the children attending the camps. Some of the activities at the camps include providing training to the children about life skills, in depth counselling, training for decision making and working at individual level. There has been a steady acceptance to the camp model and it has shifted from camps at shelter homes to camps in slums and camps in Government homes.

Future direction of SATHI and how SATHI will carry it out

In deciding its future direction, SATHI is determined to encompass family empowerment as an equal component of its work while continuing to do what it does best; i.e. rescuing and reintegrating children, who are found on railway platforms. This will be done by choosing two districts, which represents the source for highest number of children coming to the railway platforms in the last few years. SATHI also plans to intensify its efforts to encourage a higher a level of community and government stakeholders support for children at-risk. SATHI plans to initiate this as a pilot programme.

This will be done by intensifying awareness programmes about negative consequences of children leaving homes, child rights and by enabling the families with support from existing child protection systems. SATHI will continue to work closely with the CWCs and enable

them to do their job well. Additionally, SATHI will co-ordinate with the government home staff - which can do the job that SATHI or other NGOs would do to identify children who have stayed for long periods at the Government homes, and reintegrate them their families. This will serve to reduce the number of days that a child stays at the Government home.

To bring home the message in its practice that family is the best place for the child; the shelter will be made more transitional, and enabling the same responsibility to the CWCs through Government homes. More engagement methodologies will be used at the transit shelter and the camps and involve local teachers and other professionals. Although SATHI refers all the girl children, that it comes in contact with, to Government homes, better efforts will be made to conduct camps for girl children in a safe and protected way.

SATHI will continue to actively work at different railway platforms and expand its presence and support at its other branches in India. A key element of this will be to expand and strengthen Early Intervention programs, tracking and monitoring of input data for all children coming to railway platforms, and link available information at national level. SERVICE PROFILE

Rescue from Platform Staff contacting children nears the railway platform in order to counsel them and bring them to the shelter.

Railway platforms in India with their masses of humanity are the most convenient places to hide or lose one's identity. Runaway children find them ideal hideouts. These platforms the breeding ground for dangerous vices and the children are drawn in to this vortex. SATHI believes that the children belong to families. Runaway children must be rescued, counselled and reunited with their respective families.

SATHI staff is present on the railway platform from 5:00am to 11pm generally. If there are more children on any particular platform, the staffs work 24 hours. Staffs scour the entire platform. Staffs observe the children and contact them. They gradually convince the child regarding the hazards of the platform and the advantages of being in a shelter. The child is finally convinced and comes to the shelter.

Some times the staff takes the help of RPF (Railway Protection Force), GRP (Government

Railway Police), local passengers, coolies, and older children to convince the child. The staffs uses techniques like: taking the child to a restaurant, giving him medical aid if required, peer pressure, etc. in order to convince children who are reluctant to come to shelter. It is difficult to get kids who are highly addicted

SHELTER RELATED SERVICES Our transit shelters in various locations are direct help to children in means of food, clothing, medical assistance and finally resettlement. Most of our shelters are close to railway station which provides easy access to children, parents and stakeholders. These are open shelters and children can stay or go as of their will. Routine activities like mediation, physical exercise, non formal education, cultural activities and group games engage children in the activities. Part time teachers and full time counselors work with them to get information to reunite with their parents at the earliest. Duration of stay of a child in shelter depends on where he is from. Normally a child is reunited with the family within a week and maximum days of stay would be 15 days. Home Placement There is no place like home.this is the core belief of SATHI.

Children on the platforms or the streets are often perceived as abandoned children. There is a misnomer that these children are homeless or orphaned. Most of these children are runaways and their families are distraught and searching for them, but cannot afford an extensive search.

SATHI focuses on taking these children back home and all its activities are based on repatriation of the child.

Only when the child is an orphan or has a serious problem at home, SATHI refers him to other NGOs or Government institutions for education or vocational training. If the child on the platform or on the street is highly addicted, he is referred to the De addiction and home orientation camp and only after that, it begins the process of repatriation.

Home Orientation Camp for children with repeated substance abuse and long duration on railway platforms

The primary objective of the camp is to bring a positive change in the behavior and perceptions of children, who are deviant, habitual run away, lived long on platforms and indulged in repeated use of substances. It is very difficult to motivate them and requires intensive counselling and guidance on harms of substance use, relationship with family or parents and risks of platform life. Changes in their behaviour and perception towards their parents and society do help them to reunite with families.

Usually camp is organized in a secluded, silent place far away from city with all the basic facilities and arrangements for immediate medical aid and other support to meet all untoward incidents. Group of 25-30 children are enrolled in the camp with a staff-child proportion of 1:8. Part time teachers and volunteers from the community would be addition to this. Staff shares their observation in the daily review of camp activities and in the weekly meetings. Regular visit and interaction of professionals are arranged to motivate children and to teach the negative consequences of platform life and substance use.

Camp closing ceremonies Its a semi formal function organized in the last day of the camp to reunite children wit h their parents in the presence of distinguished guests from railways, police, media, NGOs, academic institution and government departments. This program is preceded by the counselling session of parents. Usually its a half day affair. Experienced counsellors from mental health institution facilitate individual and group counselling sessions. Recently we started to make sure a joint sitting of parents and children for some time with the counsellor before they leave after the formal program.

Counselling Counselling of child and his/ her parents is one of the main activities that we do in transit shelters.

On the basis of the analysis done by Dr. Rajan Patil from NIMHANS in 2007-08, we started to record counselling sessions of children which are found unusual and need to be analyzed further. Separate register is maintained in each cluster to record narrative as well as summary of sessions handled in each month. Separate room is also allotted in the shelter in each cluster for counselling children and their parents. Sathi also took a step forward to differentiate counselling and guidance. For children who are missing and/or left home for first time on simple issue or fear just guidance is found useful and effective. For other children who had lived on the platforms and exposed to substances and real platform life, different counselling sessions are required to make him realize about the problems of platform life and its effects. The reason of runaway of each child is identified during this counselling process. Broad classification of those problems include educational related problems, compulsion to work, family related problem, city attraction, peer group influence, and addiction to platform life. Analysis of these reasons and the family back ground of children are very significant in decision making on their resettlement.

Parents counselling

Counselling of parents or guardian is done with the following objectives

To understand parents perception towards the reason/s of runaway To share the difficulties of the child caused by the trigger factor at home, school, work place or some where

Collecting real information for runaway To work out on the problem to decide the role of parents to prevent the child from run away in future

Finally to hand over the child to the parents

Sathi insists parents to come to the shelter to receive the child. In 2008-09 about 80% of children were reunited with their parents in shelters and in remaining 20% cases, staff accompanied children to their houses, counselled the parents and reunited children.

Home Orientation

Nearly 90 % of the children who live on the railway platforms get used to Substance Abuse. The various substances that they get addicted to are: Beedi, cigarette, solution, gutkha, ganja, alcohol, etc.

We also see many cases of Child Sexual Abuse which has a terrible impact on the minds of these young children. The cumulative effect of all this is that, it brings in behavioural disorder among the children. That is the reason we see deviant behaviour in the children on the street or platform. SATHIs main objective in camp is to de-addict these children and orient them towards home and finally send them back home if the family is good and caring. DE-ADDICTION CUM HOME ORIENTATION CAMP

The primary objective of the camp is to bring a positive change in the behaviour and perceptions of children, who are deviant, habitual run always, lived long on platforms and indulged in repeated use of substances. It is very difficult to motivate them and requires intensive counselling and guidance on harms of substance use, relationship with family or parents and risks of platform life. Changes in their behaviour and perception towards their parents and society do help them to reunite with families.

Usually camp is organized in a secluded, silent place far away from city with all the basic facilities and arrangements for immediate medical aid and other support to meet all untoward incidents. Group of 25-30 children are enrolled in the camp with a staff-child proportion of 1:8. Part time teachers and volunteers from the community would be addition to this. Staff shares their observation in the daily review of camp activities and in the weekly meetings. Regular visit and interaction of professionals are arranged to motivate children and to teach the negative consequences of platform life and substance use.

Follow up
Rehabilitation of a child who has moved out of its home can happen in couple of ways. Reintegration of the child back home with parents is one approach. Many NGOs say that the reintegration of the child back home is the first priority.

If one see the number of children actually repatriated by NGOs, is very small compared to the number of children the NGO has handled. That is so because a few NGOs believe that in case of majority of the children, reintegration of the child back with parents is not feasible as the family could be dysfunctional and reintegration is not the best option compared to other options. Sending a child back home when the home is not good, may result in the child moving out of the house again and our efforts are wasted. SATHIs experience is that the reintegration of the child back with parents is feasible very often. There is the question of whether it is the best option needs to be further explored. At SATHI we thought that, after we reintegrate the child back home, if the child continues to stay back at home for considerable time period, and the child says it is happy, and then the home placement in that case should be termed as successful.

After some 5 such follow up over the last 5 years, we have noted that some 65% to 80% of the children continue to stay at home. It re-affirms our fundamental belief that a large percent of the street children can be placed back at home.

Collaboration with NGOs

Sathi started collaborating with NGOs in 2002 mainly with three objectives. First objective is to expand the reach to platform children in other geographical locations, secondly to reach a large number of platform children by sharing resources and using local resources and by not duplicating services and thirdly to spread awareness amongst NGOs on the concept of home placement. The scope of the program implemented through collaboration includes the

components of outreach, shelter related services, home placement, follow up of home placement and alternative home placement.

Since 2002 Sathi have collaborated with 35 NGOs in 9 states. Of the 35 NGOs, the organizations working effectively are 4, Reasonable Performance 17 and completely closed 14.

Our collaborations are based on following principles: 1. Any help to a needy child done in whatever way, any scale should be respected. 2. Rehabilitation can never be perfect you can always find false, we should not find false unless of very serious nature. 3. We should not imagine what perfect need of the child is and compare the services offer with a perfect instate assets the assistants offer within the constraints of the NGO offering it. 4. If we collaborated with an NGO the credit of good work should go to that NGO, the media should focus on that NGO. We should duck the publicity. 5. Never get caught in to small issues of money or procedure. Always take responsibility of self, settle the issues and move on. 6. When you discontinue, never hold other responsible. Treat inability and discontinue. Major achievements of collaboration Home placements: Sathis idea to collaborate with organizations and subsequently to expand the coverage of railway stations has increased family reunification of the children steadily. In the year 2006-07, 71% of total home placements were through collaborations. 67% of home placements in 2007-08 and 31% of home placements in 2008-09 was achieved through collaboration with NGOs.

Status of the Collaborated NGOs with SATHI SATHI collaborated with 35 organizations, of which 2 NGOs are functioning at Very High, 2 NGOs in High, 10 NGOs in medium level, 10 NGOs at low level, 9 NGOs have stopped working and two NGOs the collaboration could not be proceed. Very High functioning helping 30- 40 children per month; High functioning 25-30 children; medium 10-20 and low less than 10 children per month.

Observations and Learnings from Collaborations with NGOs: 1. Large scale :- The collaboration of work led to expansion in nine states and family reunification of 13038 children. In the year 2006-07 and 2007-08, the amount of children home placed was 71% and 67% and SATHI contribution was 29% and 33%. This was made possible by working together and through mutual understanding among the staffs of both the organization. 2. Promote the Concept of Home Placement: - One of the most advantages is bringing churning issues on the table about the feasibility of home placement issues. Lot many had queries about the successful of home placement, SATHI backup with huge experience had helped in convincing them. Lastly it became nationwide issue about the home placement of platform /street children. But there is change in the trend that more approaches of the organizations/CWC is de-institutionalize of the children and prior lies in locating the family of the children.

3. With less cost family reunification:- The another outcome is with less cost large number of home placement. The SATHI direct intervention cost take place is Rs. 2500/- whereas the NGO cost Rs. 1500/-

4. Easy monitoring: - The collaboration with NGOs facilitates easy monitoring the project because for SATHI from distance it is difficult to monitor and working with child is a very sensitive issue which need to handle delicately.

5. Infra structure:- Collaboration with NGOs will also fetch sharing of resource for the rehabilitation of the children. Set-up of our own infra structure involve cost and time. For instance, utilize the shelter facility of collaboration organization for accommodating the children.

6. Experience /Learning on collaboration :It was very pleasant and joy to work with NGOs. This was a new field to SATHI, the success/failure is secondary but understanding the approaches of the NGOs, the activities, NGO strategic thrust areas, how do the NGOs perceive about the problems of runaway/separated children etc. The questions / issues arouse from the collaboration NGOs on the family reunification for us to think and work on it. All this led to have a model of Collaboration.

7. Sensitizing the Issue of Rescue and Home Placement:- Sensitizing the collaboration NGOs about the significance of home placement is a strategic thrust area to SATHI.. The work in collaboration with NGOs has brought about a change in terms of scope to work for larger number of children. NGOs were home placing the children even before collaboration with SATHI. But the number of children helped was much smaller. After collaboration with SATHI they have become more proactive in rescuing a large number of children and home placing them.

8. Sustain of the Project:- The collaboration we had with small/medium and big organizations. Few of the NGOs after the end of the collaboration managed to continue the project by raising funds and passion to work with the children. Whereas in case of other organization, after withdraw of the collaboration they could not sustain no more.

1.5 OTHER PLAYERS

Plan (aid organisation) Akshaya Patra Foundation Child Rights and You Pratham Salesians of Don Bosco UNICEF

Plan (aid organisation) Plan is an international development organisation operating in 50 countries across Africa, Asia and the Americas to promote and protect the rights of children. The non profit organisation is one of the world's largest child-centred community development organisations, working in 58,000 communities with 600,000 volunteers to improve the quality of life for more than 56 million children. Plan has 21 national organisations responsible for raising funds and awareness in their respective countries. The organisation emphasizes community engagement and ownership as the means to address the needs of children around the world. The NGO focuses on Education, Economic Security, Water and Sanitation, Health, Sexual Health (including HIV), Emergencies, Protection, and Child Participation. It provides training in disaster preparedness, response and recovery and has worked on relief efforts in countries including Haiti, Colombia and Japan. History Plan was founded during the Spanish Civil War by British journalist John Langdon-Davies and aid worker Eric Muggeridge. After seeing children orphaned by the conflict, they established Foster Parents Plan for Children in Spain, which would later change its name to Plan International. Set up in 1937, the organisation provided food, shelter and clothing to children whose lives had been disrupted by the war. Funding and accountability The majority of Plans income comes from supporters who sponsor children and the remainder is raised through donations and grants. An average of 80% of this money goes directly to supporting Plans development work. The remainder is spent on fundraising initiatives and maintaining an international network of support staff. Plan publishes annual reports detailing its fundraising and spending activity.

Akshaya Patra Foundation The Akshaya Patra Foundation runs school lunch programs across India.The organization distributes freshly cooked, healthy meals daily to 1.3 million underprivileged children in

9,000 government schools through 20 locations in 9 states across India. Built on a publicprivate partnership, Akshaya Patra has supporting chapters in the United States, and UK. It costs just Rs. 750 to feed a child daily for the entire school year due to government subsidy and provision of grains and technology. For many of the children, this is their only complete meal for the day. It gives them an incentive to come to school and stay in school and provides them with the necessary nutrients becoming the food for education. In ten years, the foundation has grown to become one of the largest and most innovative school lunch programs in the world. The mission of the organization is to reach out to 5 million children by 2020, and holds to the belief that "no child in India shall be deprived of education because of hunger. Operations Akshaya Patra serves mid-day meals with help of approximately 50% grain grants and subsidies by central and state governments. Total cost per meal comes up to Rs.750 per child per year which is raised through donations and contributions.

Child Rights and You Child Rights and You commonly abbreviated as CRY is a non-profit organization in India that aims to restore children's rights in India. The organisation was established in 1979. The organization partners with grass-roots Nongovernmental organisations to uplift thousands of Indian children denied basic children's rights. It works towards restoring basic rights to children, especially from India and works across levels from direct action to advocacy, mobilizing public opinion and policy change. It focuses mainly on the 4 basic rights of survival, development, protection and participation which were defined by the United Nations Convention on the Rights of the Child (CRC), an international human rights treaty which has been ratified by 192 countries. Basic principles The CRC is built on certain "foundation principles" that underpin all other children's rights. The CRC confers the following basic rights on all children across the world, without discrimination:

The right to survival, to life, health, nutrition, name and nationality, The right to development of education, care, leisure, and recreation, The right to protection from exploitation, abuse and neglect, The right to participation in expression, information, thought and religion. CRY works to ensure these rights to all categories of children, who could be street children, children bonded in labour, children of commercial sex workers, physically and mentally challenged children and children in juvenile institutions, or even children in privileged homes. History In 1979, seven friends made a simple decision to change the lives of India's underprivileged children. Led by a 25 year airline purser, Rippan Kapur, Rs. 50 and a dining table as their resources and a belief that each one can make a difference in a child's life, they aimed to enable all children to realize their full potential. This was how CRY began. The founders of CRY chose not to fund a grassroots-level implementing organisation working directly with and for underprivileged children. Instead, they opted to make CRY a channel or a link between the millions of individuals who could provide resources and the thousands of dedicated fieldworkers who were struggling to function for lack of them. Mission To enable people to take responsibility for the situation of the deprived Indian child and so motivate them to confront the situation through collective action thereby giving the child and themselves an opportunity to realise their full potential. To work in partnership with individuals and organisations, and support them financially / non-financially as well as with people from all walks of life, who believe in the rights of children. Within CRY too, each function works in unison towards ensuring the vision of equal rights for all children.

Pratham Pratham is the largest non-governmental organisation in India. It works towards the provision of quality education to the underprivileged children in India. Established in Mumbai in 1994 to provide pre-school education to children in slums, it now has activities in 21 states of India and has supporting chapters in the United States, UK, Germany and UAE. Prathams founder and current CEO, Madhav Chavan, was the 2011 recipient of the Skoll Award for Social Entrepreneurship. History UNICEF originally set up the Bombay Education Initiative in Mumbai to establish a tripartite-partnership between the government, corporate and civil society to improve Indias primary education. This led to the formation of Pratham as an independent charity in 1994. Pratham started by holding balwadis (pre-education classes) for children in Mumbais slums. Volunteers were recruited to teach in spaces within communities, including temples, offices, and even peoples homes. The Pratham pre-school classes multiplied and were replicated in other locations. Mission Prathams mission is Every Child in School and Learning well. By increasing the literacy levels of Indias poor which account for about one third of the worlds poor, Pratham aims to improve Indias economic and social equality. This is carried out through the introduction of low cost education models that are sustainable and reproducible. Salesians of Don Bosco The Salesians of Don Bosco (or the Salesian Society, originally known as the Society of St. Francis de Sales) is a Roman Catholic religious institute founded in the late nineteenth century by Saint John Bosco in order to, through works of charity, to care for the young and poor children of the industrial revolution. The Salesians' charter describes the society's mission as "the Christian perfection of its associates obtained by the exercise of spiritual and corporal works of charity towards the young, especially the poor, and the education of boys to the priesthood". The institute is named for St. Francis de Sales, an early-modern bishop of Geneva. St. Don Bosco died on the 31st of January 1888.

UNICEF The United Nations Children's Fund (UNICEF) is a United Nations Programme headquartered in New York City, that provides long-term humanitarian and developmental assistance to children and mothers in developing countries. It is one of the members of the United Nations Development Group and its Executive Committee. UNICEF was created by the United Nations General Assembly on December 11, 1946, to provide emergency food and healthcare to children in countries that had been devastated by World War II. In 1953, UNICEF became a permanent part of the United Nations System and its name was shortened from the original United Nations International Children's Emergency Fund but it has continued to be known by the popular acronym based on this previous title. UNICEF relies on contributions from governments and private donors and UNICEF's total income for 2008 was $3,372,540,239. Governments contribute two thirds of the organization's resources; private groups and some 6 million individuals contribute the rest through the National Committees. It is estimated that 91.8% of their revenue is distributed to Program Services.[4] UNICEF's programs emphasize developing community-level services to promote the health and well-being of children. UNICEF was awarded the Nobel Peace Prize in 1965 and the Prince of Asturias Award of Concord in 2006. Most of UNICEF's work is in the field, with staff in over 190 countries and territories. More than 200 country offices carry out UNICEF's mission through a program developed with host governments. Seventeen regional offices provide technical assistance to country offices as needed. Overall management and administration of the organization takes place at its headquarters in New York. UNICEF's Supply Division is based in Copenhagen and serves as the primary point of distribution for such essential items as vaccines, antiretroviral medicines for children and mothers with HIV, nutritional supplements, emergency shelters, and educational supplies, among others. A 36-member Executive Board establishes policies, approves programs and oversees administrative and financial plans. The Executive Board is made up of government representatives who are elected by the United Nations Economic and Social Council, usually for three-year terms. Following the reaching of term limits by Executive Director of UNICEF Carol Bellamy, former United States Secretary of Agriculture Ann Veneman became executive director of

the organization in May 2005, with an agenda to increase the organization's focus on the Millennium Development Goals. She was succeeded in May 2010, by Anthony Lake. UNICEF is an intergovernmental organization (IGO) and thus is accountable to those governments. UNICEFs salary and benefits package is based on the United Nations Common System. UNICEF National Committees There are National Committees in 36 countries worldwide, each established as an independent local non-governmental organization. The National Committees raise funds from the private sector. UNICEF is not funded exclusively by voluntary contributions, and the National Committee collectively raise around one-third of UNICEF's annual income. This comes through contributions from corporations, civil society organizations and more than 6 million individual donors worldwide. They also rally many different partners including the media, national and local government officials, NGOs, specialists such as doctors and lawyers, corporations, schools, young people and the general public on issues related to childrens rights Promotion and fundraising In the United States, Canada and some other countries, UNICEF is known for its "Trick-OrTreat for UNICEF" program in which children collect money for UNICEF from the houses they trick-or-treat on Halloween night, sometimes instead of candy. UNICEF is present in 191 countries and territories around the world. UNICEF designated 1979 as the "Year of the Child" and many celebrities including David Gordon, David Essex, Alun Davies and Cat Stevens gave a performance at a benefit concert celebrating the Year of the Child Concert in December 1979. Many people in developed countries first hear about UNICEF's work through the activities of 36 National Committees for UNICEF. These non-governmental organizations (NGO) are primarily responsible for fundraising, selling UNICEF greeting cards and products, creating private and public partnerships, advocating for childrens rights, and providing other invaluable support. The U.S. Fund for UNICEF is the oldest of the National Committees, founded in 1947.

CHAPTER 2 ORGANIZATION STRUCTURE

An organizational structure is a mainly hierarchical concept of subordination of entities that collaborate to serve one common aim. Organizations are a variant of clustered entities. An organization can be structured in many different ways and styles, depending on their objectives and ambience. The structure of an organization will determine the modes in which it operates and performs. Organizational structure allows the expressed allocation of responsibilities for different functions and processes to different entities such as branch, departments, workgroup and individual. Individuals in an organizational structure are normally hired under time limited work contracts or work orders. Common success criteria for organizational structures are: Decentralized reporting Flat hierarchy High transient speed Permanent monitoring Rapid response Shared visibility Matrix hierarchy

Types of Organizational structure Pre-bureaucratic structures Pre-bureaucratic (entrepreneurial) structures lack standardization of tasks. This structure is most common in smaller organizations and is best used to solve simple tasks. The structure is totally centralized. The strategic leader makes all key decisions and most communication is done by one on one conversations. It is particularly useful for new (entrepreneurial) business as it enables the founder to control growth and development. Bureaucratic structures The fully developed bureaucratic mechanism compares with other organizations exactly as does the machine compare with the non-mechanical modes of production. Precision, speed, unambiguity, strict subordination, reduction of friction and of material and personal coststhese are raised to the optimum point in the strictly bureaucratic administration. Bureaucratic structures have a certain degree of standardization. They are better suited for more complex or larger scale organizations, usually adopting a tall structure. The tension between bureaucratic structures and non-bureaucratic is echoed in Burns and Stalker's distinction between mechanistic and organic structures. Post-bureaucratic The term of post bureaucratic is used in two senses in the organizational literature: one generic and one much more specific. In the generic sense the term post bureaucratic is often used to describe a range of ideas developed since the 1980s that specifically contrast themselves with Weber's ideal type bureaucracy. This may include total quality management, culture management and matrix management, amongst others. None of these however has left behind the core tenets of Bureaucracy. Hierarchies still exist, authority is still Weber's rational, legal type, and the organization is still rule bound. Functional structure Employees within the functional divisions of an organization tend to perform a specialized set of tasks, for instance the engineering department would be staffed only with software engineers. This leads to operational efficiencies within that group. However it could also lead

to a lack of communication between the functional groups within an organization, making the organization slow and inflexible. As a whole, a functional organization is best suited as a producer of standardized goods and services at large volume and low cost. Coordination and specialization of tasks are centralized in a functional structure, which makes producing a limited amount of products or services efficient and predictable. Moreover, efficiencies can further be realized as functional organizations integrate their activities vertically so that products are sold and distributed quickly and at low cost. For instance, a small business could start making the components it requires for production of its products instead of procuring it from an external organization. But not only beneficial for organization but also for employees faiths. Divisional structure Also called a "product structure", the divisional structure groups each organizational function into a division. Each division within a divisional structure contains all the necessary resources and functions within it. Divisions can be categorized from different points of view. One might make distinctions on a geographical basis (a US division and an EU division, for example) or on product/service basis (different products for different customers: households or companies). In another example, an automobile company with a divisional structure might have one division for SUVs, another division for subcompact cars, and another division for sedans. Each division may have its own sales, engineering and marketing departments. Matrix structure The matrix structure groups employees by both function and product. This structure can combine the best of both separate structures. A matrix organization frequently uses teams of employees to accomplish work, in order to take advantage of the strengths, as well as make up for the weaknesses, of functional and decentralized forms. An example would be a company that produces two products, "product a" and "product b". Using the matrix structure, this company would organize functions within the company as follows: "product a" sales department, "product a" customer service department, "product a" accounting, "product b" sales department, "product b" customer service department, "product b" accounting department. Matrix structure is amongst the purest of organizational structures, a simple lattice emulating order and regularity demonstrated in nature.

Weak/Functional Matrix: A project manager with only limited authority is assigned to oversee the cross- functional aspects of the project. The functional managers maintain control over their resources and project areas.

Balanced/Functional Matrix: A project manager is assigned to oversee the project. Power is shared equally between the project manager and the functional managers. It brings the best aspects of functional and projectized organizations. However, this is the most difficult system to maintain as the sharing power is delicate proposition.

Strong/Project Matrix: A project manager is primarily responsible for the project. Functional managers provide technical expertise and assign resources as needed.

Among these matrixes, there is no best format; implementation success always depends on organization's purpose and function. Team One of the newest organizational structures developed in the 20th century is team. In small businesses, the team structure can define the entire organization. Teams can be both horizontal and vertical. While an organization is constituted as a set of people who synergize individual competencies to achieve newer dimensions, the quality of organizational structure revolves around the competencies of teams in totality. Network Another modern structure is network. While business giants risk becoming too clumsy to proact (such as), act and react efficiently, the new network organizations contract out any business function, that can be done better or more cheaply. In essence, managers in network structures spend most of their time coordinating and controlling external relations, usually by electronic means. H&M is outsourcing its clothing to a network of 700 suppliers, more than two-thirds of which are based in low-cost Asian countries. Not owning any factories, H&M can be more flexible than many other retailers in lowering its costs, which aligns with its lowcost strategy. The potential management opportunities offered by recent advances in complex networks theory have been demonstrated including applications to product design and

development, and innovation problem in markets and industries.

Hierarchical organization A hierarchical organization is an organizational structure where every entity in the organization, except one, is subordinates to a single other entity. This arrangement is a form of a hierarchy. In an organization, the hierarchy usually consists of a singular/group of power at the top with subsequent levels of power beneath them. This is the dominant mode of organization among large organizations; most corporations, governments, and organized religions are hierarchical organizations with different levels of management, power or authority. For example, the broad, top-level overview of the general organization of the Catholic Church consists of the Pope, then the Cardinals, then the Archbishops, and so on. Members of hierarchical organizational structures chiefly communicate with their immediate superior and with their immediate subordinates. Structuring organizations in this way is useful partly because it can reduce the communication overhead by limiting information flow; this is also its major limitation. A hierarchy is typically visualized as a pyramid, where the height of the ranking or person depicts their power status and the width of that level represents how many people or business divisions are at that level relative to the wholethe highest-ranking people are at the apex, and there are very few of them; the base may include thousands of people who have no subordinates. These hierarchies are typically depicted with a tree or triangle diagram, creating an organizational chart. Those nearest the top have more power than those nearest the bottom, and there being fewer people at the top than at the bottom. As a result, superiors in a hierarchy generally have higher status and command greater rewards than their subordinates.

Organization Structure of SATHI

SECRETARY

DEPUTY SECRETARY

FIELD OFFICER

PROGRAM OFFICER

ACCOUNT OFFICER

STREET EDUCATOR

TEAM LEADER SHELTER INCHARGE

ACCOUNT ASSISTANT

ACCOUNTANT OFFICE ASSISTANT COUNSELLOR CAMP TEACHER CWC INCHARGE COOK CARETAKER

OUTREACH WORKER

DRIVER

SATHI follows hierarchical organization structure where each person has clear roles and responsibilities. Those at the top of the hierarchy have more authority than those lower down. The structure is a relatively flat hierarchy. This means there are only a few layers within it. Having a flat structure can aid communication as messages do not have to pass through many intermediaries. The Senior Management Team of SATHI is at the top. SATHI takes high level responsibility for rescuing runaway children, financial control, communications management and client relationship. The flat organisational structure of sathi gives management and staff in subsidiary units a good level of contact with senior management. A traditional functional structure is one where there are separate departments which operate under the leadership of those at the top of the hierarchy. Sathi has flat structure which is good for ideas The overriding management philosophy here is: less is more. Flat organizations strive to minimize decision-making by cutting out unnecessary middlemen. When the company functions from ideas and innovation, a flat organization structure works better because you are tapping into everyones creativity, The big advantage with this model is that it welcomes and encourages different perspectives, which leads to more honest insights about a company and its direction, she says. SATHIS structure clearly defines each employees role within the organisation and defines the nature of their relationship with other employees. In SATHI structure, the ladder ascends to a top authority figure. Within the ladder are departments with clear roles and managers. With this type of vertical structure, sathis employees know whom to report to with problems.

Managers are Skilled in Specific Area Sathi is able to hire managers at each level who are skilled in the department's specific function. In other types of organizations, there is a manager who oversees workers with many functions. The manager might have a basic knowledge of each function, but not an in-depth understanding. Managers knowledgeable in a specialized area can guide employees to advanced levels. They can train employees in and enhance their skills necessary to perform their jobs well. They can hold department-based meetings that foster personal development.

Employees who feel confidence in their managers' competence will want to learn from them. In this way, sathis managers build a strong department that can improve the success of entire organization. Clear Promotional Pathway SATHI employees know where to go when it comes to promotion; they can clearly see the next step up the ladder in your organization. In a hierarchical structure, employees know where the path leads and where it ends. They might be motivated to move onto the next position, whether it's into a managerial role or a new department.

Departmental Loyalty Departments working to fill a common role form a sense of camaraderie. As SATHI employees work to fill a specific role in the organization, they form bonds with those contributing toward the same outcome. In "Organizational Communication in an Age of Globalization," the departments have specific jargon, and the shared language binds people in that division. Employees in a department can relate to one another as they face similar challenges and reflect on shared experiences

CHAPTER 3 FUNCTIONAL DEPARTMENTS

Management Committee Management Committee holds the right of policy formulation and providing directions for the organization. Except for the other arrangements made in the statute, Management Committee will make necessary arrangement as per the duties, responsibilities and objectives of the organization. Management Committee holds the right of acquires movable-unmovable assets, sale of the assets and transactions. Implement or authorize to undertake activities in line with the objective of the organization. Implement the policies, guidance and decisions made by General Assembly Nominate the Election Commissioner Transfer its rights and authority to the Executive Director or other responsible officer to manage and supervise day-to -day function of the organization. Undertake activities as assigned by this statute and rules made.

Program officer Investigates assigned program areas and develops a clear understanding of these areas; works with organizations as needed to develop proposals for possible funding; keeps Senior Program Officer informed of program-related activities; maintains close coordination with the Senior Program Officer, Executive Director, Board of Directors, and other program staff as needed to accomplish program goals and objectives. Develops in-depth knowledge of assigned program areas, including current issues and key resource people and organizations, and a clear understanding of how they fit into the SATHIS interests. Develops and maintains adequate resource files for assigned program areas. Develops proposals in the assigned initiative program areas and formulates recommendations for funding. Ensures that proposal summaries are coherent and accurate, and that all required information is provided and prepared to answer any substantive question about the

proposals. May entail contacting appropriate organizations to encourage them to develop proposals for possible funding.

Approves final evaluation plan for each proposal recommended for funding. Reviews and approves funded grants evaluations. Periodically reviews and reports on the overall effectiveness of each program area. Building relationships with strategic partners Securing project funding from institutional funders Management of contracts with institutional donors Monitoring and evaluation and reporting on programme Sharing programme impact and lessons Policy analysis and development Building relationships with strategic partners for policy and programme Establish and maintain relationships with key contacts in strategic partner organisations Represent SATHI at relevant networks, workshops, seminars and policy events Develop ideas and projects for formal collaboration with targeted development agencies, policy, and research organisations and securing project funding from institutional funders Identify and track emerging opportunities through the institutional funding strategy and action plan. Contribute to design and development of project proposals Draft technical and financial proposals to secure funding Manage associate consultant contributions to proposal development Manage and coordinate scheduled reporting to meet institutional donor reporting requirements Coordinate lesson learning from monitoring and evaluation of the SATHI programme portfolio and support sharing of best practice and policy insights Develop and manage specifically commissioned and funded monitoring and evaluation initiatives both qualitative and quantitative. Coordinate overall programme portfolio to ensure key performance indicators are met and programme impact is in line with strategy. Work closely with fundraising and communications team to share information about programme portfolio, pipeline, and specific projects and programme impact.

Contribute to strategic planning within the Programme Team, including annual and medium term planning and monitoring.

Team leader

Oversee the assessment of capacity building needs with the NGO community, and the design and implementation of a responsive program; Design and implement capacity building activities sensitive to the context in advocacy, organizational development, watchdog and service provision; Identify and supervise implementing partners and staff to carry out capacity building activities; Establish procedures for disbursement of grants, tracking and monitoring relationships with grantees and impacts of activities; Oversee relevant monitoring and evaluation activities; Ensure interventions are tailored to each recipients capacity needs, and monitor and trouble-shoot so funds are utilized for maximum impact.

Accountant

Prepares asset, liability, and capital account entries by compiling and analyzing account information. Documents financial transactions by entering account information. Recommends financial actions by analyzing accounting options. Summarizes current financial status by collecting information; preparing balance sheet, profit and loss statement, and other reports. Substantiates financial transactions by auditing documents. Maintains accounting controls by preparing and recommending policies and procedures. Guides accounting clerical staff by coordinating activities and answering questions. Reconciles financial discrepancies by collecting and analyzing account information. Secures financial information by completing data base backups. Maintains financial security by following internal controls.

Prepares payments by verifying documentation, and requesting disbursements. Answers accounting procedure questions by researching and interpreting accounting policy and regulations. Complies with federal, state, and local financial legal requirements by studying existing and new legislation, enforcing adherence to requirements, and advising management on needed actions.

Prepares special financial reports by collecting, analyzing, and summarizing account information and trends. Maintains stock holder confidence and protects operations by keeping financial information confidential.

ACCOUNTING ASSISTANT Accounting assistant correct, process and reconcile a wide variety of accounting documents such as invoices, departmental billings, employee reimbursements, cash receipts, vendor statements, and journal vouchers; review and code financial information; prepare and process documents to disburse funds, make deposits and prepare reports; compile and review information for accuracy; and maintain records. Calculates rates paid for purchases and all price extensions. Verifies items billed against items ordered and received and reconciles differences through follow-up with the vendor and/or other employees. Enters, updates, and/or retrieves accounting data from automated systems. Posts financial data to appropriate accounts in an automated accounting system, according to instructions. Reviews on-line transactions for changes and accuracy and corrects errors. Retrieves system reports and assigns codes to data. Disburses funds using manual/local warrants or petty cash and makes change according to specific instructions. Endorses warrants or money orders, prepares account deposit ticket, and deposits money as directed. Files and/or removes records and reports Operates standard office equipment. Determines content and assembles data in order to prepare monthly reports for review.

Reconciles transactions, financial data, and other information to an automated accounting system. Pre-audits, verifies, and processes employee expense claims reviewing rules for employee compliance. Designs, prepares, and maintains spreadsheets using basic mathematical calculations. Reviews new procedures, manuals, and system enhancements and suggests revisions. Composes routine letters and reports using instructions or guidelines of the work area. Inventories office supplies and equipment; prepares and submits orders for purchase. Explains appropriate work instructions to other employees. Interprets and applies instructions and guidelines to resolve work problems.

Counsellor Counsellors help runaway child to explore feelings and emotions that are often related to their experiences. This allows child to reflect on what is happening to them and consider alternative ways of doing things. Working in a confidential setting, counsellors listen attentively to the child and offer them the time, empathy and respect they need to express their feelings and perhaps understand themselves from a different perspective. The aim is reduce their confusion and enable them to cope with challenges or to make positive changes in their life where necessary. Counsellors do not give advice, but help child to make their own choices within the framework of an agreed counselling contract. Establishing a relationship of trust and respect with child; agreeing a counselling contract to determine what will be covered in sessions (including confidentiality issues); encouraging children to talk about issues they feel they cannot normally share with others; actively listening to child concerns and empathising with their position; accepting without bias the issues raised by clients; Helping child towards a deeper understanding of their concerns; challenging any inconsistencies in what child say or do; Helping children to make decisions and choices regarding possible ways forward; referring child to other sources of help, as appropriate; attending supervision and training courses; Developing a relationship with child to explore the underlying causes of their conflicts and behavioural difficulties.

 Listening and responding empathetically to clients in a confidential setting. Helping children to identify their current and underlying problems and enabling them to decide appropriate courses of action. Undergoing personal therapy or de-briefing supervision and professional development. Keeping up-to-date with treatments and theories. SHELTER INCHARGE Shelter incharge has primary responsibility for shelter coverage, crisis intervention, and oversight of daily shelter operations. The position is full-time, requires on-call availability, and is considered essential personnel in times of hardship, such as extreme weather conditions and/or other emergencies. Conduct face to face check-ins with runaway child and provide any needed follow up as requested by Program Officer. Supervise meal preparation and clean-up. Assign and monitor completion of daily chores with program residents. Ensure adequate supervision of children by parents and provide any needed follow up as requested by Childrens Services Counsellor. Document notable client interactions with staff and volunteers . Maintain appropriate professional boundaries with program residents. In conjunction with daytime coordinator, prepare shopping list for all household and client food items. Distribute personal care items to children as per protocol. Immediately report suspected neglect/abuse to supervisor. Ensure the safety and security of the program and residents, including completion of walk-thrush. Conduct and participate with other shelter staff in shift exchange per policy. Participate in program schedule to ensure 24/7/365 coverage, including emergency backup staffing.

OUTREACH STAFF Outreach Worker work as a member of the outreach team to provide crisis support, safety planning, information and initial and continuous risk assessment, and also ongoing emotional and practical support for runaway children and children experiencing domestic abuse. The Outreach Worker will be accountable to the Outreach Team Leader in the first instance, the Manager and ultimately to the Management Committee. The Outreach Team Leader will provide regular supervision sessions, though in her absence these sessions will be conducted by the Manager. Probation reviews and annual appraisal will be conducted by the Team Leader and Manager. The Outreach Worker will have responsibility for managing her own caseload, keeping accurate records and ensuring that all related administration tasks are completed and up to date. Outreach worker has to ensure that the work is carried out to a high standard, according to the organisation's policies and procedures and in keeping with the ethos of SATHI. To fully understand the aims, objectives and ethos of SATHI and to reflect these in carrying out the work. To respect, support and work within all the Organisation's policies and procedures and use the correct procedures for recommending changes to policy. To maintain a high degree of professionalism. To take responsibility for assets, materials, safe-keeping of keys, cash and equipment used in pursuance of duties. To take responsibility for participating in regular structured supervision sessions with the Outreach Team Leader to review caseload and how successfully targets are being met and to identify areas for professional and service development. Outreach staff is responsible for ensuring that the project promotes and maintains a strict code of confidentiality as they have access to a variety of confidential information concerning clients and must ensure that confidentiality is maintained at all times. To process all referrals in line with the organisations policy and procedures To undertake risk assessment for all children referred to the organisation. To offer appropriate support, including safety planning, support through civil and criminal court action and welfare rights.

To support the transition of children from the abusive situation into safe and independent living. To develop links with other NGO and maintain a network of support for the service. To provide mentor support to the team of volunteers. To support the development and growth of volunteers, value their commitment and maintain the organisations ethos, adhering to its policies and procedures. To keep written records and statistical information in order to meet the data requirements of the Organisation To be involved in the planning, reviewing and evaluation of services offered by the Organisation To attend meetings, provide reports etc. as and when requested by the Outreach Team Leader and Manager. To participate in regular supervision with the Outreach Team Leader. To consider training needs and undertake training as required.

Camp teacher Camp teacher act as a leader and assist camp staff in providing participants with a fun and educational camp experience. Camp teacher guidance and support for all camp staff and maintain a positive relationship with runaway child, staff, parents and campers. Demonstrate a desire, commitment, and ability to work with children and Maintain a positive and enthusiastic attitude with staff, parents, and campers. Demonstrate professionalism by timely submission of lesson plans and effective and demonstrate effective problemsolving skills, patience, and flexibility. Oversee behavioural plans and manage discipline issues, creating and coordinating safe and enjoyable activities for all campers Active involvement in the operation and delivery of the camp programs and Assist with planning and implement camp programs. Ensure all inventories are maintained and Assist with training, weekly staff meetings and supervising staff with guidance of the Academic Camp Create weekly newsletters and health reports Ensure programs run on schedule and all required supplies are purchased

Assist with preparing permission slips for outings, book outings and special events/guests for day camp.

Office assistant Office Assistant performs or administrative functions. They work with business, operations, or office managers. They oversee office communications, and petty cash. Office Assistants do filling, typing, drafting, and answering phone calls. They receive walk-in guests, schedule appointments, answer emails, and may perform the duties of a receptionist. Coordinates and prepares for meetings and special events by assisting with registrations and confirmation, reserving rooms, and arranging for refreshments and necessary equipment; duplicates, sorts and distributes various documents; prepares bulk mailings; maintains departmental calendars; coordinates and confirms conference room reservation schedules; sends, receives and distributes faxes and email; sorts, distributes, and redirects mail; maintains inventory of office supplies and orders as necessary; operates standard office equipment. Handling business correspondence Faxing, scanning and copying documents Drafting internal memos Ordering office supplies and stationery Performing administrative functions for operations team Reporting to administrative or office manager Coordinating with team leaders in arranging meetings Assist in creating or maintaining the department's web and intranet pages and use web publishing software to create documents and other web-based resources. Performs research and data gathering activities and may prepare reports or summaries of information. Prepares or maintains reports or records and other statistical or quantitative data.

Cleaning STAFF Perform walk through of entire shelter and perform needed remedial actions (close windows, sweep/mop/clean any crumbs on floors or kitchen counters, put away food left out, put dirty dishes into dishwasher, etc.). Work collaboratively with the Volunteer Coordinator and Program Director for all program and/or agency training. Provide on-the-job training for organizing and coordinating schedules with staff and volunteers. Provide any needed training; follow up training, and supervision of volunteers. On rotating basis with the other home coordinators, clean staff bathroom. Organize bulletin boards and brochure racks; restock, post new information and discard outdated items. Check supply of children kits and assemble new kits if necessary. Clean and organize office work spaces. Clean, sanitize, and prepare newly vacated bedrooms to be ready for new children arrivals. Perform safety checks (outlet covers, storage of toxic cleaners, etc.) and resolve any safety concerns. Document all household maintenance issues are on the Facilities Log and ensure communication amongst team. Document all runaway children, including visitors, in daily log. Attend and participate in weekly program team meetings. Attend staff training and in-services approved by the Program Director. Provide on-site supervision of interns and/or volunteers during shift and provide feedback to Volunteer Coordinator and/or Program Director as needed.

FINANCE DEPARTMENT Most entrepreneurs consider this is the most important function in the business. This is because all businesses need a regular stream of income to pay the bills. Finance staff record all the money earned and spent so that the senior managers always know how much profit (or loss) is being made by each product or each part of the business and how much money is currently held by the business. This enables critical decisions to be made rapidly and accurately because they are based on accurate information. In some cases, this can mean the difference between the success and failure of the business as a whole.

In many large businesses, different types of financial experts are employed: MANAGEMENT ACCOUNTANTS monitor departmental budgets and current income from sales, prepare cash flow forecasts and specialize in analysing day-to-day financial information and keeping senior managers informed. FINANCIAL ACCOUNTANTS are concerned with the preparation of the statutory accounts. All companies must provide a Balance Sheet and Profit and Loss Account each year, and most produce a cash flow statement as well. A CREDIT CONTROLLER monitors overdue payments and takes action to recover bad debts.

Finance staff supports the accountants by keeping financial records, chasing up late payments and paying for items purchased. Today, virtually all businesses use computer accounting packages to record financial transactions and prepare their accounts as well as spreadsheets to analyse financial data. Some finance departments prepare the payroll and pay staff salaries, but other businesses outsource this to a specialist bureau. Finally, businesses will often need money to fulfil specific aims and objectives linked to growth, expansion or simply updating their equipment or machinery. These items may be bought from money held back (reserved) from past profits, but usually additional money will be needed. If the business needs to borrow money it will want the cheapest interest rates possible and also want good repayment terms. Deciding where to obtain these funds is a specialist job and normally the task of the senior financial manager.

HUMAN RESOURCE DEPARTMENT Human Resource Management (HRM, HR) is the management of an organization's employees. While human resource management is sometimes referred to as a "soft" management skill, effective practice within an organization requires a strategic focus to ensure that people resources can facilitate the achievement of organizational goals. Effective human resource management also contains an element of risk management for an organization which, as a minimum, ensures legislative compliance. Human resources management involves several processes. Together they are supposed to achieve the above mentioned goal. These processes can be performed in an HR department, but some tasks can also be outsourced or performed by line-managers or other departments. When effectively integrated they provide significant economic benefit to the company.

Workforce planning Recruitment (sometimes separated into attraction and selection) Induction, Orientation and On boarding Skills management Training and development Personnel administration Compensation in wage or salary Time management Travel management (sometimes assigned to accounting rather than HRM) Payroll (sometimes assigned to accounting rather than HRM) Employee benefits administration Personnel cost planning Performance appraisal Labour relation

HUMAN RESOURCE MANAGEMENT FUNCTIONS Advertising job vacancies Notifying staff of promotion opportunities Receiving and recording all job applications, arranging interviews and notifying candidates of the result

Sending a contract of employment and other essential information to new staff Arranging staff training and encouraging continuous professional development Monitoring the working conditions of staff Checking health and safety and keeping accident records Recording sick leave and reasons for absence Carrying out company welfare policies, e.g. long-service awards and company loans Advising managers on the legal rights and responsibilities of the company and its employees Keeping records of grievances and disciplinary actions and their outcome Monitoring the terms and conditions of employment, including wage rates Maintaining staff records Liaising with staff associations or trade unions which represent the workforce

CHAPTER 4 SWOT ANALYSIS

SWOT analysis (alternatively SWOT Matrix) is a structured planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. A SWOT analysis can be carried out for a product, place, industry or person. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favourable and unfavourable to achieving that objective. The technique is credited to Albert Humphrey, who led a convention at the Stanford Research Institute in the 1960s and 1970s using data from Fortune 500 companies. The degree to which the internal environment of the firm matches with the external environment is expressed by the concept of strategic fit. Setting the objective should be done after the SWOT analysis has been performed. This would allow achievable goals or objectives to be set for the organization. Strengths: characteristics of the business or project that give it an advantage over others Weaknesses: are characteristics that place the team at a disadvantage relative to others Opportunities: elements that the project could exploit to its advantage Threats: elements in the environment that could cause trouble for the business or project Identification of SWOTs is important because they can inform later steps in planning to achieve the objective. First, the decision makers should consider whether the objective is attainable, given the SWOTs. If the objective is not attainable a different objective must be selected and the process repeated. Users of SWOT analysis need to ask and answer questions that generate meaningful information for each category (strengths, weaknesses, opportunities, and threats) to make the analysis useful and find their competitive advantage.

Matching and converting One way of utilizing SWOT is matching and converting. Matching is used to find competitive advantage by matching the strengths to opportunities. Converting is to apply conversion strategies to convert weaknesses or threats into strengths or opportunities. An

example of conversion strategy is to find new markets. If the threats or weaknesses cannot be converted a company should try to minimize or avoid them. Internal and external factors SWOT analysis aims to identify the key internal and external factors seen as important to achieving an objective. The factors come from within a company's unique value chain. SWOT analysis groups key pieces of information into two main categories: Internal factors the strengths and weaknesses internal to the organization External factors the opportunities and threats presented by the environment external to the organization Analysis may view the internal factors as strengths or as weaknesses depending upon their effect on the organization's objectives. What may represent strengths with respect to one objective may be weaknesses (distractions, competition) for another objective. The factors may include all of the 4Ps; as well as personnel, finance, manufacturing capabilities, and so on. The external factors may include macroeconomic matters, technological change, legislation, and socio-cultural changes, as well as changes in the marketplace or in competitive position. The results are often presented in the form of a matrix. SWOT analysis is just one method of categorization and has its own weaknesses. For example, it may tend to persuade its users to compile lists rather than to think about actual important factors in achieving objectives. It also presents the resulting lists uncritically and without clear prioritization so that, for example, weak opportunities may appear to balance strong threats. It is prudent not to eliminate any candidate SWOT entry too quickly. The importance of individual SWOTs will be revealed by the value of the strategies they generate. A SWOT item that produces valuable strategies is important. A SWOT item that generates no strategies is not important. Usefulness of SWOT The usefulness of SWOT analysis is not limited to profit-seeking organizations. SWOT analysis may be used in any decision-making situation when a desired end-state has been

defined. Examples include: non-profit organizations, governmental units, and individuals. SWOT analysis may also be used in pre-crisis planning and preventive crisis management. SWOT analysis may also be used in creating a recommendation during a viability study/survey. SWOT ANALYSIS OF A NON GOVERNMENT ORGANIZATION STRENHTHS Organizations mission and vision. Human resources & in-house skills Strong relationships with OPPORTUNITIES Political will and encouragement Supportive external and relevant thematic

government, policies/laws. Support from donor agencies and other sector

partners and stakeholders

Past and ongoing activities and application of organizations. best practices/lessons learnt. Good community response

Experience at national and grass root level Favourable distribution of resources work. Good coordination and Support from media and advocacy

monitoring/evaluation mechanism. Stable sources of finance.

organizations

OPPORTUNITIES Political will and encouragement

THREATS Government restrictions and lack of political

Supportive external and relevant thematic will. policies/laws. Security problems for e.g. war,

Support from donor agencies and other disappearances, abduction of aid workers. sectoral organizations. Good community response Favourable distribution of resources Support from media and Detrimental external policies. Lack of interest and attitudinal problems at the community level. advocacy Lack of access to target groups and locations Sustainability problems due to lack of funding. Anti-NGO approaches by media and

organizations

advocacy organizations

SWOT ANALYSIS OF SATHI Strengths Committed Donors Committed Staff Diversified Staff Regional Presence Secular and Faith-based Volunteers in CWC Sponsorship Experience Networking Technology Intellectual Capital History of Success Weaknesses Employee Turnover No Clear Marketing Strategy/Cohesive

Communications Strategy Aging Donor Base Donors Restricting Funds NPH Restricting What Constitutes Part of the Commitment Impulsive Managerial Decisions Poor Internal Communication Excess Workers Organization Becoming Too Bureaucratic Dispassionate Board Members

Opportunities Partnerships Returning Volunteers Board Networking Prominent National Event Planned Giving Staff Development Underdeveloped markets

Threats Competing Organizations Competing Needs Political Unrest Unreliable Foreign Postal Services World Economy Negative View of Nonprofits Xenophobia/Hostile Political Climate

Cultivate grants Streamlining operations to Natural Disasters increase efficiency

STRENGHTS Committed Donors SATHIS greatest strength is its passionately supportive base of donors. These are donors who are founding members of various branches of SATHI, or donors who have visited one or more Government children homes. They are donors who have developed long lasting relationships with children at the government children homes. The reliance on a large number of individual donors protects it from the economy fluctuations to some extent. Committed Staff While turnover is high, the entire staffs are strongly devoted to the mission. The awareness of the needs of orphaned and abandoned children throughout INDIA is a powerful incentive for staff to remain even when internal culture is volatile. Many are child sponsors and most have visited at least one children home. Even employees who have quit out of frustration with management continue to vocally and financially support sathi. Diversified Staff Different ages, professional backgrounds, linguistic and ethnic backgrounds combine to make a diverse staff that has potential to learn from each other and develop innovative fundraising and operational strategies. Ages of the staff range from seasoned professionals to recent college graduates. Young employees keep salary costs down and energy high. More experienced employees provide the oversight and wisdom to channel the energy into constructive plans. This diversity offers more perspectives in staff meetings and strategic planning, helping Friends to identify more possibilities to achieve its goals. Regional Presence SATHI has established deeply rooted local connections to communities throughout the country. This gives it an advantage in that it has a local feel and offers opportunities for donors from all over the country to attend small, local events, while maintaining the resources of a larger, national organization that allow for widespread name recognition and more broadbased fundraising initiatives. When timed right, all regions have benefited from national mailings and email appeals, while the costs of these mailings are kept down by the volume that an organization-wide purchase allows. Regions are able to learn from other regions to increase their own successes or avoid making decisions that didnt work for other offices.

Volunteers in sathi By offering an international volunteer program similar to the bosco, sathi not only provides reliable, low cost help to the runaway children, they are in fact creating future ambassadors for the organization. The volunteers, who stay at an sathi home for at least one year, become sources for passionate speakers at fundraising events, and their networks of friends and family become connected to Friends through the volunteers experience. Often volunteers will return or write home and inform family and friends of a specific need.

Networking Technology SATHI has networking capabilities between all regions across the country. This allows for immediate file sharing and increased collaborative opportunities. Fundraisers at SATHI can identify specific projects that need funding before they meet with a donor, and can provide pictures and details should the donor be interested in learning more.

WEAKNESS Employee Turnover The large turnover causes lapses in knowledge sharing, hiccups in important processes, and squanders potentially valuable opportunities. Oftentimes when an employee leaves, they do not sufficiently document the opportunities they were cultivating. A potential for a major donation may be lost simply because the new employee did not know there was a donor ready to be asked.

Aging Donor Base One problem of having a base of donors who have been supporters for years is the reality that in the near future, many of these donors will be lost. SATHI does not keep data on the ages of donors, but the fact that many of their supporters have been connected to sathi since its beginning years logically means that they are now 30-50 years older than when they began their philanthropic efforts with the organization. Donors Restricting Funds Oftentimes, donors know of specific projects needing funding at sathi, this can be a problem if the specific project is not part of sathis approved budget for the year. The Board

determines in-budget projects for each calendar year. Out of budget projects will still help children, but will not be included as part of the total commitment to sathi for the year. Impulsive Managerial Decisions Thorough vetting of ideas that have strong impacts on staff or implications in the budget often does not take place. Frequently, the possibility of a success is enough to move forward without adequate consideration of budgetary implications. Most often overlooked is the cost of staff time to pursue impulsive projects. Excess Workers The decision to add a lot of new positions in a short period of time has led some staff to feel that there are positions that are unnecessary or could be rolled into other employees duties. Organization Becoming Too Bureaucratic Long time donors to Friends of the Orphans have grown accustomed to an organization with a grassroots, local feel. After the merger, donors have frequently complained of the corporate feel of the organization. Based on my experience answering phone calls and receiving Friends mail, I received dozens of complaints from donors about the new autoprompt phone system and what they perceived to be a confusing mix of regional and national communications. Some mail is sent with the national office address, and some is sent with the local office address, which further confuses donors. Sponsorship payments and correspondence to the children used to be processed at regional offices. Now, all payments and letters are processed in the national office. Although this was done to streamline the process, many donors feel that it has made it less personal and harder to resolve questions that arise. Inactive Board Members Each office has a regional fundraising board. While many of these board members are active and enthusiastic, there are a several board members who do not actively participate or raise funds. These members are often kept on due to a notion that any board member is better than no board member.

OPPORTUNITIES Returning Volunteers Former sathi volunteers who have spent long periods of time living at sathi homes possess an amazing potential for increased awareness and fundraising. Reaching out to these volunteers before they leave to volunteer and when they return could help solidify the volunteers closeness to sathi. Board Networking Board members of sathi are often wealthy and connected. They possess great potential in their networks of people. There is opportunity for individual donations, corporate sponsorships, and skilled volunteer services provided by contacts of the board members. Peter Drucker said, Good boards dont descend from Heaven. It requires continuing work to find the right people, and to train them. This sentiment is important for Friends leaders to remember. It is important not to become complacent with the board you have, but rather to develop the board you want.

Planned Giving While it is also a danger to sathis continued success, the aging donor base also means more donors who are thinking about their will or estate plans. Sathi has opportunity for large gains in the future. It also offers donors a way to feel like their passion for the children of sathi is carried on even after they are gone.

THREATS Competing Organizations One of the largest threats to SATHI is the increasing number of similar ngo. Competing Needs The influx of donors that responded to the Haiti earthquake are losing interest now that the story of it is over. Donors are no longer inundated with news articles and television features on the devastation in Haiti. It is important for Friends to acknowledge and reach out to these donors to keep them connected. The stories featured in the media during the time around the earthquake were compelling, but since then have moved focus onto newer tragedies elsewhere in the world. The recent devastation in Japan is just one example of a need acting as a competitor for donations.

Political Unrest Political turmoil in the countries where NPH operates poses a continual threat to the success of Friends mission. Recently in Nicaragua, the president wanted to eliminate orph anages because of the negative connotations, and was trying to force NPH to send children back to relatives who had already given their children up either because they could not afford to provide for them or because they had substance abuse, mental health, or criminal problems. Luckily NPH was able to retain its orphanage operation because of the strong positive reputation it has earned. Friends needs to be prepared for national crises that can pop up overnight. Slow Correspondence Child help is marketed as a way to connect with a child in the sathi homes. However, donors often do not understand the long delays in correspondence that can occur because of the mail systems in foreign countries. Sathi has little control over the speed or reliability of the foreign mail services, and thus must develop ways to streamline its own operations to offset some of the delay. Economy While it is certainly not exclusive to sathi, the volatile economy is threatening the organizations ability to achieve its goals. Although the impact of the economy has been buffered by the wide base of individual donors, It also poses the threat of increased need in the sathi homes, as more children may be given up when families cannot afford to take care of them. Negative View of Nonprofits The past several years have seen countless news stories about nonprofits large and small who have misused funds and misled donors. As a result, donors are becoming increasingly reluctant to give and often put more restrictions on their donations. Prominent news stories about misappropriation of funds at nonprofits strongly discourage donors from giving, even to organizations that have garnered no bad press coverage.

CONCLUSION This SWOT analysis of sathi reveals an organization that has amazing potential. For any of the recommendations to be successful, sathi first needs to repair and enhance its internal communications and work flows. This starts by focusing on getting staff on board with the leadership. Only after the leadership has strong support from the staff will successful integration of the recommendations be possible. It will be important for sathi to identify options for both quick results and long term solutions and goals. One cannot be done without the other. Immediate results will boost cash flow and reserves, which enables long term planning to be tangible. Where possible, sathi should strive to find ways to quantify success to report to donors, potential grantors, and its own employees. Internally, sathi should aim for a qualitative return on investment in its employees. Addressing the items identified in this SWOT analysis will empower sathi to become a reputable non profit powerhouse among other players.

CHAPTER 5 BEST PRACTICES

Transparency, integrity and honesty form the basis of Sathis relationship with all stakeholders. No discrimination on the basis of caste, class, gender, religion, region, and ethnicity. No violent or indecent behaviour with children. Respect for the perceptions, feelings and rights of children. Upward, downward and horizontal accountability. No violent or indecent behaviour within the organisation. Upholding professional relationships with all, including children. Openness to learning from field experiences. Openness to sharing data and knowledge with others. Utilisation of capital for development of programmes and not for infrastructure or property. Promote teamwork in the interest of a child. Respect for any changes made by other organisations in the interest of a child. Concern for the welfare of staff members. Active participation of staff members in decision-making for programmes. Promoting internal reflection and questioning the issues related to street children and their rehabilitation, so as to create practice-based knowledge. Recognition of the need for civil society to engage with issues relating to railway or street children along with the State. Create a safe, secure and nurtured environment for runaway and separated children within the child protection system, from the grassroots to national level, so that the child may develop holistically with self-confidence, self worth and dignity.

Create a safe and secure environment for runaway children picked from railway platforms, in Sathis shelters, Government Homes, institutions and other NGO shelters, to protect the child from neglect and abuse.

Reunite the runaway or separated child with family, and address the causes that had caused the child to run away to prevent them from running away again, as the family is the best place for a child.

Track reunited children for a limited period of time to assess and encourage their integration with the family. Facilitate the child protection system from the grassroots to national level with a view to rehabilitate children with their families.

Generate and share practice-based knowledge related to runaway and separated children, within the child protection system, so as to improve interventions in the interest of rehabilitating the child with family.

Implement the best practices related to quality rehabilitation of children with their families, and to facilitate the implementation of these practices by the State and NGO sector working on the issue of runaway and separated children.

Facilitate the engagement of civil society with the State on issues related to runaway and separated children.

Strategic thrust areas Speedy rescue of runaway and separated children from railway platforms Provision of a safe and temporary shelter for these children. Reuniting the child with family at the earliest. Creating and sharing practice-based knowledge. Facilitating NGOs, the State and the Railways to prioritise reunification of runaway and separated children with their families, by sharing experience and learning that results from Sathis work.

CHAPTER 6 SPECIAL TASK

1. INTRODUCTION

HDFC STANDARD LIFE INSURANCE HDFC Standard Life Insurance Company Ltd. is one of Indias leading private life insurance companies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.), Indias leading housing finance institution and one of the subsidiaries of Standard Life plc, leading providers of financial services in the United Kingdom. Both the promoters are well known for their ethical dealings and financial strength and are thus committed to being a long-term player in the life insurance industry all important factors to consider when choosing your insurer. HDFC Standard Life Insurance Company was incorporated on 14th august 2000, under the name of HDFC standards life insurance Company limited. Our ambition, tracing back to October 1995, was to be the first private company to enter the life insurance market in India. On 23rd October 2000, this ambition was realized

when HDFC standard life was the only life insurance company to be granted a certificate of registration HDFC Standard life insurance company ltd is one of Indias leading private life insurance companies offering a range of individual and group insurance solutions. It is a joint venture between housing development financial limited (HDFC ltd), Indias leading housing financial institution and the standard life group, United Kingdom. Both the promoters are

well known for their ethical dealings and financial strength and are thus committed to being a long-term player in the life insurance industry important factor to consider when choosing your insurer. HDFC Ltd and standard life group, UK, have a long and close relationship built upon shared values and trust. The ambition of HDFC standard life is to mirror the success of the parent companies and be the yardstick by which all other insurance companies in India are measured. As a joint venture of leading financial services groups, HDFC Standard life has the financial expertise required, to manage long-term investments safely and efficiently.

HDFC Standard life offers a range of individual and group solutions, which can be easily customized to your specific needs. Our group solutions have been designed to offer you complete flexibility combined with a low charging structure. The companys premium income, including the first year premium and renewal premium income including the first year premiums and renewal premium was Rs.1532.21 crores for the period April 2005 to march 2006. HDFC standard life has covered over 1.6 million individuals. The company has also declared its 6th consecutive bonus in as many years for our with profit policyholders.

FINANCIAL ANALYSIS

A firm communicates financial information to the users through financial statements and reports. A financial statement is a collection data organized according to logical and consistent accounting procedures. The financial statement provide a summary of accounts; the balance sheet reflecting the assets, liabilities and owners equity or capital as on certain date; and the trading or manufacturing account showing details of production costs and gross income or lose production; and then a profit and loss account to show the result achieved, i.e., actual profit or loss for a certain period, generally one year. Financial statement analysis is largely a study of relationships among various financial factors in business as disclosed by a single set of statement and a study of the trend of these factors as shown in a series of statements. In simple, analysis means breaking-up of statements for interpreting the progress or stage of development in the business. This analysis can be done in various ways.

Analysis of financial statements

Meaning-Analysis of financial statements is the process of identifying financial strength and weakness of the firm by properly establishing relationship between the items of the balance sheet and income statement. Objectives 1. To find out the stability and soundness of the business enterprise. 2. To asses and evaluate the earning capacity of the business. 3. To estimate and determine the possibilities of future growth of business. 4. To evaluate the administrative efficiency of the business enterprise.

Purpose & Significance

1. To Judge the financial soundness of the business concern-The Long term as well as short term solvency of a business can be judged through financial analysis. 2. Inter firm comparison The financial analysis makes it easy to make inter-firm comparison. Various financial characteristics like profitability, liquidity and solvency of different firms can be compared. 3. To Judge the managerial efficiency-The financial analysis enables the management to find out overall efficiency of the firm. This will enable the management to locate weak spots of the business and take necessary remedial action. 4. To judge earning capacity of the business-The financial analysis enables a comparison of the present earning capacity of the business. It may also help in the estimation of the future earning capacity. 5. To make business forecasts-The financial analysis will help in assessing future development by making forecasts and preparing budgets. The trend shown by financial analysis will pave way for the future.

TOOLS OF FINANCIAL ANALYSIS 1. Comparative Statements 2. Common size Statement 3. Trend Analysis 4. Fund Flow Analysis 5. Cash Flow Analysis 6. Ratio Analysis

RATIO ANALYSIS Ratio analysis is one of the powerful tools of the financial analysis. Ratio analysis is a technique of calculation of accounting ratios from the data or figures found in financial statements. The figures contained in financial statements are not absolute and unconnected figures do not properly indicate efficiency of performance but are also misleading importance of a figure in the financial statement can be appreciated only if it is related to some other figure In short ratio analysis is defined as the technique of interpretation of financial statements with the help of accounting ratio derived from financial statements

ADVANTAGES OF RATIO ANALYSIS 1. It simplifies complex data: Accounting information conveyed in financial statements cannot be understood by non-accounting managerial personnel. Accounting ratios help to simplify and summarize accounting information. 2. It is used as a scanning device: Ratio analysis enables analysis to know the financial position of the firm, which the financial statement does not. 3. It acts as a managerial tool: Besides being a forecasting and a planning device the

technique of ratio analysis is a managerial tool assisting in the performance of other managerial function. 4. Reveals operational efficiency: Ratio analysis is an effective diagnostic instrument for bringing to light operational efficiency, if any with the help of this tool one can access the financial position and profitability of the undertaking. 5. It is used as a planning device: Ratio computed may be of considerable help in predicting future. On the basis of historical information management can make reasonable forecast for future.

5. Useful in comparison of performance: Through accounting ratio comparison can be made between one department of firm with another of the same firm in order evaluate the performance of various department of the firm. 6. Yard sticks of comparison: Besides evaluate of performance of the different department of the firm it is also serves as a standard for making inter firm comparison. 7. Useful in locating weak spots of business: Accounting ratios are of great assistance in locating the weak spots of the business even through the overall performance may be efficient 8. Ratio analysis is useful not only for the insiders (management) but also for outsiders like creditors, investors etc. 9. Ratio is very helpful in establishing standard costing system and budgetary control.

Disadvantages of Ratio Analysis 1. Different meanings assigned to the same term: Different adopted to calculate ratio may assign different meanings. This may affect the calculation of ratios and when used for comparison may lead to wrong conclusion 2. Only one method of analysis: It is only a beginning and gives just a fraction of

information needed for decision making .therefore to have comprehensive analysis of financial statement; ratios should be used along with other method of analysis 3. Fault result is based on incorrect accounting data: Accounting ratio can be correct only if data is correct, sometimes the information given the financial statement is effected by window dressing i.e. Showing position better than what actually is. 4. It is very difficult to lay down a common standard: Comparison because circumstances differ from concern to concern and the nature of each industry is different. 5. Ignores qualification factor: Accounting ratios are tools of quantitative analysis only but some time qualifications factors may sure amount of quantitative aspects. The calculations derived from the ratio analysis under such circumstances may be destroyed.

Importance of Ratio Analysis 1. Liquidity Position: with the help of ratio analysis can know the liquidity position of the firm. We can know whether it is able to meet its short term liabilities. This ability is reflected in the liquidity ratios of the firm. 2. Long Term Solvency: ratio analysis is useful to assessing the long term financial viability of the firm. This aspect of the financial position is concerned to the long term

creditors, security analyst and present and potential owners of a business. The long term solvency is measured by leverage ratios. 3. Operating Efficiency: it throws light on the degree of efficiency in the management and utilization of assets. The activity ratios measure the efficiency of the management. 4. Over-All Profitability: the management is constantly concerned about the overall growth in the enterprise. It to meet short and long term obligations to creditors. 5. Trend Analysis: It shows whether the financial position of the firm is improving or deteriorating over the years. Significance of trend analysis ratios lies in the fact to know the direction of the financial positions

Ratios can be classified into four groups 1. Liquidity ratios. 2. Capital structure ratios. 3. Profitability ratios. 4. Activity ratios. Liquidity Ratios The adequate liquidity in the sense of the ability of a firm to meet current/short term obligations when they become due for payment can hardly be overstressed. 1. Net working-Capital Ratios, 2. Current ratios, 3. Acid test ratio ratios 4. Super quick ratios, 5. Turnover ratios.. Net working capital It represents the excess of current assets over current liabilities. An enterprise should have sufficient NWC in order to be able to meet the claims of the creditors and the day to day needs of the business. NWC measures the firms reservoir of funds. It can be related to net assets are capital employed. The greater is the amount of Net Working capital, greater is the liquidity position of the firm. Net Working Capital Ratio=Total Current Assets /Total Current Liabilities

NWC=current assets- current liabilities

Current ratio Is the ratio of total current assets to total current liabilities? Short-term creditors prefer a high current ratio since it reduces their risk. Shareholders may prefer a lower current ratio so that more of the firm's assets are working to grow the business. Typical values for the current ratio vary by firm and industry. For example, firms in cyclical industries may maintain a higher current ratio in order to remain solvent during downturns. Current Ratio=Current assets / Current Liabilities

Acid test ratio or quick ratio It refers as quick ratio because its a measurement of a firms ability to convert its current assets quickly into cash in order to meet current liabilities. Its a ratio between quick current assets and current liabilities. Acid Test or Quick Ratio =Quick Current Assets / Current Liabilities The current assets used in the quick ratio are cash, accounts receivable, and notes receivable. These assets essentially are current assets less inventory. The quick ratio often is referred to as the acid test. Here quick current asset=all current asset- prepayment- inventory. Turnover ratio It is another way of examining the liquidity is to determine how quickly certain current assets are converted into cash. 1. Debtors turnover ratio 2. Creditor turnover ratio Debtors turnover ratio is determined by dividing the net credit sales by average debtors outstanding during the year.

Debtors turnover ratio = net credit sales/average debtors.

Since its insurance company turnover ratio is not applicable.

Leverage ratio/ capital structure ratio It is the ratio to calculate the long term liquidity position of the firm. There are thus 2 aspects of the long term solvency of the firm. Ability to repay principle when due. Regular payment of the interest .

There are 2 different types of leverage ratios I. Ratios which are based on relationship between borrowed funds and owners capital. Debt-equity ratio Debt-asset / capital ratio II. Ratio which are based on p/l account (coverage ratios) Interest coverage ratio Dividend coverage ratio Total fixed coverage ratio Cash flow coverage ratio Debt equity ratio It indicates the relative proportions of debt and equity in financing the asset of the firm. There 2 approaches in calculating debt equity ratio. The debt equity ratio is the relationship between borrowed funds and owners capital is a popular measure of the long term financial solvency of the firm. Total long term debt does not include current liabilities like sundry creditors banks reedit etc, which are ostensibly short term, are renewed year by year and remain by and large permanently in the business. Debt equity ratio = total debt/ shareholders equity

The debt equity ratio shows the safety margin of the firm. It implies low safety margin. This is an important tool of financial analysis to appraise the financial structure of a firm. it has important implications from the view point of creditors, owners and the firm by itself. High ratio shows a large share of financing by outsiders. The debt equity ratio is high the owners

are putting up relatively less money of their own. It is danger signal for the creditors. A lower debt equity ratio has just the opposite implications to the creditors. Debt asset ratio Shows the relation between the total debt to total asset. The total debt comprises long term debt plus current liabilities. As the ratio is like the debt equity ratio, it gives result similar to debt equity in respect of capital structure of the firm. Debt to total assets ratio = Total debt/Total assets Another variant of D/E ratio is to relate the owners/ proprietors funds with total assets= proprietors funds / total assets. Total asset is calculated by adding all fixed assets and all current assets. Profitability ratios Apart from the creditors both short term and long term, also interested in the financial soundness of a firm are the owners and management. The management of the firm is naturally eager to measure its operating efficiency. The operating efficiency depends ultimately on the profit earn by it. The profitability ratios are designed to provide answers to questions such as Is the profit earned by the firm adequate? What rate of return does it represent? What is the rate of profit for various divisions and segments of the firm? What are the earnings per share? What was the amount paid in dividends? What is the rate of return to equity holders etc.? Profitability ratios are: Profit margin ratio Expenses ratio Return on assets Return on shareholders equity

Profit margin ratio Net profit margin ratio this measures the relation between profit and revenues of a firm. The net profit margin is indicative of managements ability to operate the business with sufficient success not only recover from revenues of the period, the cost of merchandise or services, the expenses of operating the business and the cost of the borrowed funds, but also to leave a margin of reasonable compensation to the owners for providing their capital at risk. Net profit Ratio = Earnings after tax and interest/ Revenues

Return on equity*(ROE)* It is one of the profitability ratios which show the relationship between the profit and loss account and the equity (Net Worth) of the firm. Common or ordinary shareholders are entitled to residual profit. Rate of dividend is not fixed; the earnings may be distributed to shareholders. Never the less, the profits after taxes represent their returns. A return on shareholders equity is calculated to see the profitability of owners investment. Return on equity = Profit/(loss after tax)/ Net worth

Net Retention ratios (Net Premium divided by Gross premium) Net retention ratio is the relationship between net premium and gross premium. This measure the ability of the insurer to retain investment made by the insured (policyholder). The difference between net premium and gross premium is reinsurance ceded. Retention ratio = Net premium income / Gross premium income

Administrative expenses ratio Administrative expenses ratio is another profitability ratio related to revenue. It is computed by dividing expenses by revenue. Administrative expenses= Administrative expenses/ Net revenue

Management expenses ratio It is another ratio which shows the relationship between expenses and gross premium of the business. The management ratio explains the changes in the profit margin. This ratio is computed by dividing management expenses via, operating expenses relating to insurance business excluding interest. Operating expenses ratio= Operating expenses /Net revenues

A higher management expenses ratio is unfavorable since it will leave a small amount of operating income to meet interest dividend etc. To get a comprehensive idea of the behavior of operating expenses, variations in the ratio over a number of years should be analyzed. Return on capital employed (ROCE) Here the profits related to the total capital employed. The term capital employed refers to long term funds supplied by creditors and owners. Return on capital employed second type of ROI. ROCE = Net profit earning / Average total capital employed

This ratio would provide sufficient insight into how efficiency the long term funds of owners and creditors are being used. Higher the ratio, the more efficient is the use of capital employed. Thus the ratio provides a test of profitability related to the sources of long term funds. Earnings per share Measures the profit available to the equity shareholders on a per share basis, is the share they can get on every share held. Number of shares= Share capital/Price per Share

Price earnings ratio Price earnings ratio= Market price of share/ EPS

2. STATEMENT OF THE PROBLEM

Financial analysis is the technique which helps to know the financial position of the company. There is rising competition between HDFC Standard Life and other companies and the study focuses on the performance of the company using financial statement analysis. This study will provide information to all the stakeholders of the company.

3. OBJECTIVES OF THE STUDY

This widely used by the financial analysiss and credit granting institutions and financial managers in performance of their jobs. It has become a useful tool in their analytical kit. This is because the financial statements, i.e., Income Statement and the Balance Sheet have a limited role to perform. Income Statement measures flow restricted to transitions that pertain to rendering of goods and services to customers. The Balance Sheet is merely a static statement. It is a statement of assets and liabilities as on a particular date. The main objectives of the study are To analyzing the financial statement. To simplifies and summarizes a long array of accounting data and makes them understandable. To forecasting and preparing the plans for the future. To will reveal the trend of costs, sales, profits and other important facts. To establish ideal standards of the different items of the business. To discloses the liquidity, solvency and profitability of business enterprise. To provide useful information to the management. 4. RESEARCH METHODOLOGY TITLE OF THE STUDY A Study has been conducted in the area of FINANCIAL STATEMENT ANALYSIS at HDFC STANDARD LIFE. SCOPE OF THE STUDY

This study helps the company to identify its competitive position among its industrial competitors by which the company can further improve its performance to enjoy high reputation among clients. This study also helps in making necessary changes in the attributes of the insurance cover offered by the company so that the customers can enjoy the benefits of the insurance cover. The need for the study also arises to identify and offer additional insurance products according to the expectations of the customers. It is useful for the management. It gives information to the investors about the earning capacity of the business. With the help of Ratio Analysis comparison of profitability and financial soundness can be made between one firm and another. Current year's ratios are compared with those of previous years and if some weak spots are thus located remedial measures are taken to correct them. It gives information to the financial institution for providing the finance to the company It gives information to the taxation authorities. It gives information to the researchers for conducting research in respect of profitability, efficiency, financial soundness and growth of that company. SOURCES OF DATA Insurance company broacher IRDA web site Companies web sites Annual report of company

RESEACH DESIGN Research Design is the way in which the research is carried out. It works as a blue print. Research Design is the arrangement of conditions for the collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. The present project is descriptive in nature. In Descriptive Research Design, those studies are taken which are concerned with describing the characteristics of a particular group. The major purpose of descriptive research is the description of state of affairs, as it exists at present.

Exploratory Research -

an exploratory research focuses on the delivery of ideas and is

generally based on secondary data. It is a preliminary investigation a preliminary investigation which does not have a rigid deigns. This is because a researcher engaged in exploratory study may have to change his focus as a result of new ideas and relation among the variables. The study conducted through exploratory research with the help of data obtain from the secondary data, there is no specific sample design made or questionnaire used to obtain information

PLAN OF ANALYSIS The data has been compiled, analysed and tabulated in various forms. The Tabulated financial data has been further interpreted. These interpretations have been used to form conclusions and suggest recommendation. Using various financial tools like fund flow statement, ratios and percentages the analysis was done. DATA COLLECTION The data can be of two types: Primary Data Secondary Data

Secondary Data are those data which are already collected and stored and which has been passed through statistical research. In this project, secondary data has been collected from following sources: Annual Report Articles in Journal, Magazines. Books Other material and report published by company

LIMITATION OF THE STUDY The survey conducted may not be considered as comprehensive as only limited respondents could be contacted because of the time constraint. Study is based on the published financial statements and may carry the limitation of financial statements. Only the last 5 years data is considered for the study The study is limited to HDFC ltd. and therefore, the conclusions drawn based on this may not be a reflection of the entire industry.

5. ANALYSIS AND INTERPRETATION 5.1 Net working capital- It represents the excess of current assets over current liabilities. An enterprise should have sufficient NWC in order to be able to meet the claims of the creditors and the day to day needs of the business. NWC=current assets- current liabilities Net working capital= total current assets / Total current liabilities

TABLE-1 Amount in (Rs.000) Particulars Total Current assets Total current liabilities Net working capital 2008 38,69,728 2,658,567 1,211,161 2009 53,25,536 3,874,652 14,50,884 2010 8,575,727 6,129,149 24,46,576 2011 96,43,629 8,820,225 8,23,404 2012 7,947,934 12,673,016 (4,725,082)

Interpretation-The Net working capital from the above calculation is worth Rs1, 211,161 in 2008, it has been increase in 2009 to 14,50,884 and in the year 2010, again it has increase by worth Rs.24,46,576 and in the year 2011,it has been decreased by worth Rs.8,23,404,and again has decreased by worth Rs.(4,725,082).

GRAPH-1

net working capital

3,000,000 2,000,000 1,000,000 0 -1,000,000 -2,000,000 -3,000,000 -4,000,000 -5,000,000 -6,000,000 net working capital, -4,725,082 2008 2009 2010 2011 2012

Graph 5.1- Net Working capital Ratio of 5 Years

Interpretation-From the above graph it is clear that Net Working Capital gone down for the firm from12, 673,016 to(4,725,082).This is in reality deterioration in liquidity position. In the previous year the firm had Rs 1.06 of current assets for each Re current liabilities but by the end of current year the amount of current assets for each rupee of current liabilities declined to Rs 0.62.The lack or depletion of working capital due to management do not think of ploughing back the cash generated from profit made. Therefore Net Working Capital is not satisfactory.

5.2 Current ratio-It represents the excess of current assets over current liabilities. An enterprise should have sufficient NWC in order to be able to meet the claims of the creditors and the day to day needs of the business. NWC=current assets- current liabilities Net working capital= Total current assets/ Total current liabilities

TABLE-2 Particulars
Current assets Current liabilities Current ratio

Amount in (Rs.000) 2008 2009 2010 2011 2012 7,947,934 12,673,016 0.63

38,69,728 53,25,536 8,575,727 96,43,629 2,658,567 3,874,652 6,129,149 8,820,225 1.45 1.37 1.39 1.09

Interpretation-The Net Current ratio from the above calculation is worth 1.45:1 in 2008, it has been decreased in 2009 to 1.37:1 .it increase by 1.39:1 in 2010, it has decreased by 1.09:1 in 2011, again it has been decreases by 0.63:1 in 2012.

GRAPH-2

current ratio
2 1.5 1 0.5 0 current ratio 2008 1.45 2009 1.37 2010 1.39 2011 1.09 2012 0.63

Graph 5.2: Current Ratio of 5 Years

Interpretation-HDFC standard life company is having a current ratio in year 2008 is 1.45 and in 2009 it reduced to 1.37, in the year 2010 current ratio increased further in 1.39. Again it starts reducing in the year 2011 is 1.09.But again the current ratio deteriorated in the year 2012 is 0.63. In the year 2012, the cash is reduced compared to previous year because of payment of dividend. The advances reduced because employees set of their claims so that current assets are decreased. Here current ratio is below 1 (i.e., current liabilities exceeds current assets) for the year 2011 2012. This indicates that the firm may find difficult to pay its bills on time. 5.3 Quick Ratio (Acid Test Ratio) -It refers as quick ratio because its a measurement of a firms ability to convert its current assets quickly into cash in order to meet current liabilities. Its a ratio between quick current assets and current liabilities. Acid ratio=quick current assets/current liabilities. Quick Ratio=Quick current Assets/ current liabilities

TABLE- 3 Particulars
Quick current assets Current liabilities Quick ratio

Amount in (Rs.000) 2008 1,961,980 2,658,567 0.7379 2009 1,961,980 3,874,652 0.5063 2010 4,082,489 6,129,149 0.6660 2011 5,534,969 8,820,225 0.6275 2012 4,917,758 12,673,016 0.3880

Interpretation-The Quick ratio from the above calculation is worth 0.74 in 2008, it has been decreased in 2009 to 0.506, and in the year 2010 it has increased by 0.66, and it decreased by 0.63 in 2011, and again it has been decreased by 0.39 in the year 2012.

GRAPH-3

quick ratio
1 0.8 0.6 0.4 0.2 0 2008 2009 2010 2011 2012 quick ratio

Graph 5.3: Quick Ratio of 5 Years

Interpretation-Quick ratio is satisfactory when the ratio is 1: 1; here current year ratio is 0.63 rupee of current asset to each rupee of current liability. And previous year ratio is 1.09 rupee of current asset to each rupee of current liability. Currently the quick ratio is less than the standard norm, the interpretation that can be placed on the current ratio and acid test ratio is that a large part of the current asset of the firm tied up in slow moving and unsalable inventories and slow paying debts. The quick ratio is a more rigorous and penetrating test of the liquidity position of the firm. 5.4 PROFIT MARGIN RATIO-Profit margin ratio this measures the relation between profit after tax and revenues of a firm. The profit margin is indicative of managements ability to operate the business with sufficient success not only recover from revenues of the period, the cost of merchandise or services, the expenses of operating the business and the cost of the borrowed funds, but also to leave a margin of reasonable compensation to the owners for providing their capital at risk.

Profit Margin Ratio=Net Profit / Net Revenue

TABLE-4 Particulars
Net profit Net Revenue Profit margin Ratio

Amount in (Rs.000)

2008

2009

2010

2011

2012 (2,751,844) 69,556,324 (0.03)

(1,287,572) (1,255,611) (2,435,094) (5,029,631) 15,469,501 (0.08) 28,226,248 (0.04) 48,176,166 (0.05) 55,183,763 (0.09)

Interpretation-From the above calculation the profit margin ratio showing negative in all the years, which are (0.08),(0.04),(0.05),(0.09) and (0.03).it shows the company has not profit in the year 2008-2012. GRAPH-4

Profit margin ratio

0 2008 -0.05 2009 2010 2011 2012 Profit margin ratio

-0.1 Graph 5.4: Profit Margin Ratio of 5 Years

Interpretation-The profit margin ratio is the overall measure of the firms ability to turn each rupee of income from services (revenue) in to net profit. HDFC Standard Life Company is suffering from loss from the year 2008 2012 respectively. Even though having good sales and growth in the market company is not in the position to make profit. There is continues decrease in profit, the loss suffered by this company and also the percentage of loss from the year 2006 to 2010 is 0.08, 0.04, 0.05, 0.09 and 0.03. In the year 2008 it was facing more loss but later it went decreasing the loss. A high return margin would ensure adequate returns to the owners as well as enable a firm to withstand

adverse economies conditions when revenue is declining, cost of production is rising and demand for the product is falling. Debt asset ratio- Shows the relation between the total debts to total asset. The total debt comprises long term debt plus current liabilities Debt to total assets ratio=Total debt/Total assets

Another variant of D/E ratio is to relate the owners/ proprietors funds with total assets. proprietors funds / total assets. Total asset is calculated by adding all fixed assets and all current assets.

TABLE-5 Particulars Total debt Total assets debt asset ratio 2008 29,356 4,471,073 0.006566 2009 12,638 6,061,590 0.001275 2010 18,618

Amount in (Rs.000) 2011 30,248 11,094975 0.002726 2012 40,366 9,091,711 0.004439

9,907,527 0.001879

Interpretation-The Debt-asset ratio from the above calculation is worth 0.006in 2008, it has been decrease in 2009 to 0.001, in the year 2010, 2011 and 2012; it has been increased respectively worth 0.0018, 0.003 and 0.004. GRAPH-5

Debt asset ratio

0.01 0.005 0 2008 2009 2010 2011 2012

Graph 5.5: Debt asset Ratio of 5 Years

Interpretation-According to the above graphical representation the debt assets ratio is 0.006 in the year 2008, in the year 2009 it has been decreased to 0.0013, in the year 2010 it has been increased to 0.0018, and in the year 2011 it is remaining same, in the year 2012 it has been increased to 0.004. 6. Net Profit Ratio The concept of net profit is different from net operating profit. Calculating the net profit, All non-operating expenses and losses (e.g. Loss on sale of old assets, provision for legal damages etc.) Are also deducted and all non-operating incomes (e.g. Dividend income, interests receive on investments etc.) Net Profit Ratio= Profit /Loss after interest tax/ Revenues

TABLE-6

Amount in (Rs.000)

Particulars

2008

2009 (1,255,611)

2010 (2,435,094)

2011 (5,029,631)

2012 (2,751,844)

Profit/loss after interest (1,287,572) and tax Revenues NET profit Ratio 15,469,501 (0.0832)

28,226,248 (0.0445)

48,176,166 (0.0505)

55,183,763 (0.0911)

69,556,324 (0.3956)

Interpretation-The Net profit ratio from the above calculation is worth (0.0832) in 2008, it has been decrease in 2009 to (0.0445) in the year 2010, and it has been increased respectively (0.0505),(0.0911) and (0.03956) in the year 2010,2011 and in the year 2012.

GRAPH-6

net profit ratio

0 -0.1 -0.2 -0.3 -0.4 -0.5 2008 2009 2010 2011 2012 net profit ratio

Graph 5.6: Net Profit Ratio of 5 Years

Interpretation-Here the profit and loss account showing negative balance. So the ratio of net loss to the revenues is (0.03956). A high return margin would ensure adequate return to the owners as well as enable a firm to withstand adverse economic conditions when revenues is declining, cost of production is rising and demand for the product is falling. 7. Return on Equity-It is one of the profitability ratios which show the relationship between the profit and loss account and the equity (Net Worth) of the firm. Common or ordinary shareholders are entitled to residual profit. Rate of dividend is not fixed; the earnings may be distributed to shareholders. Never the less, the profits after taxes represent their returns. A return on shareholders equity is calculated to see the profitability of owners investment. The shareholders equity or net worth will include paid up capital, share premium and reserves and surplus less accumulated losses. Return on equity=profit/(loss after tax)/Net worth TABLE-7 Particulars
Profit/( loss after tax) Net worth (Return on equity) 3,1659,72 (0.4067) 3,939,077 (0.31876) 6,379,641 (0.3817) 6,520,340 (0.7714) 5,752,361 (0.4778)

Amount in (Rs.000) 2008

(1,287,572

2009
(1,255,611)

2010
(2,435,094

2011
(5,029,631)

2012
(2,751,844)

Interpretation-The Return on equity from the above calculation is worth 0.68 in 2008, it has been decrease in 2009 to 0.41 and 0.32 in the year 2010, it has increase by 0.38 in 2011 and 0.77 in 2012. GRAPH-7

return on equity
0 -0.2 -0.4 -0.6 -0.8 -1 2008 2009 2010 2011 2010 return on equity

Graph 5.7: Return on Equity Ratio of 5 Years

Interpretation-The ROE indicates how well the firm has used the resources of owners. In fact this ratio is one of the most important relationships in financial analysis. The earning of a satisfactory return is the most desirable objective of a business. The ratio of net profit to owners equity reflects the extent to which this objective has been accomplished. This will reveal the relative performance and strength of the companys in attract. 8. Retention ratio-(Net Premium divided by Gross premium) Net retention ratio is the relationship between net premium and gross premium. This measure the ability of the insurer to retain investment made by the insured (policyholder). The difference between net premium and gross premium is reinsurance ceded. Retention Ratio=Net Premium /Gross Premium Income TABLE-8 Particulars
Net Premium

Amount in (Rs.000) 2008

15,469,501

2009
28,226,248

2010
48,176,166

2011
55,183,763

2012
69,556,324

Gross Premium

15699,126

28,558,656

48,585,616

55,646,937

70,051,044

Retention ratio

0.9853

0.9884

0.9916

0.99167

0.9929

Interpretation-The Retention ratio from the above calculation is worth 0.9853 in 2008, it has been continuously increase by 0.9880 in the year 2009, 0.9916 in the year 2010, 0.99167 in 2011, and 0.9929 in the year 2012.

GRAPH-8

net retention ratio

0.995 0.99 0.985 0.98 2008 2009 2010 2011 2012 retention ratio

Graph 5.8: Net retention ratio of 5 Years

Interpretation-Reinsurance plays an important role in the insurance business of virtually every type. The service provided by the reinsurer is similar to that provided by the insurance company to their policyholders. In general insurance there are risks which, because of their magnitude or nature, one insurance company cannot afford to cover, such cases, an insurance company insures the whole risk itself and lays off the amount it has accepted to other insurance of reinsurance companies, retaining only that much risk which it can absorb. Here current years retention ratio is 99%. Company is retaining 99% of risk with itself, ceding 1% to the reinsurance.

9. Administrative expenses ratio-Is another profitability ratio related to revenue. It is computed by dividing expenses by revenue. Administrative expenses ratio= Administrative Expenses/ Net revenue

TABLE-9Amount in (Rs.000)
Particulars Administrative Expenses 2008 18,251 2009 8,252 2010 12,596 2011 5,307 2012 3,981

Net revenue

15,469,501

28,226,248

48,176,166

55,183,763

69,556,324

Administrative ratio

expenses

0.00117

0.00029

0.00026

0.000096

0.000057

Interpretation- The Administrative ratio from the above calculation is worth 0.00117in 2008, it has been continuously decrease by 0.00029 in 2009, 0.00026 in 2010, 0.000096 in 2011, 0.000057 in the year 2012. GRAPH-9

administrative expenses ratio

0.0015 0.001 0.0005 0 2008 2009 2010 2011 2012 administrative expenses ratio

Graph 5.9: Administrative Expenses Ratio of 5 Years

Interpretation-The expense ratio is very important for analysing the profitability of the firm. It should compare over a period of time with the industry average. As a working proposition a lower ratio is favourable. The implication of high expenses is that relatively small percentage of share of revenue is available for meeting financial liabilities. In 2012 the HDFC Standard Life is having ratio 0.05 when compared to previous years i.e., 2011 (0.09). Current year ratio is lower so that expenses are come down as compared to previous year. Therefore this ratio is not up to the mark because expenses are to be very low than the sales so that it improves percentage of revenue available for meeting short term obligations.

10. Management expenses ratio-It is another ratio which shows the relationship between expenses and gross premium of the business. The management ratio explains the changes in the profit margin. (Expenses of management divided by Total gross direct premium) Management Expenses Ratio= Management Expenses/Total Gross Premium

TABLE-10
Particulars Management Expenses Total Gross Premium 2008 5,214,991 28,558,656 2009 7,902,445 28,558,656 2010

Amount in (Rs.000)
2011 21,915,907 55,646,937 2012 20,231,561 70,051,044

13,704,946 48,585,616

Ratio

0.1826

0.2767

0.2820

0.3938

0.2888

Interpretation-The Management expenses ratio from the above calculation is worth 0.1826 in 2008, it has been increased in 2009 to 0.2767 and 0.2820 in the year 2010, 0.3938 in the year 2011, but it has been decreased worth 0.2888 in the year 2012. GRAPH-10

management expenses ratio

0.6 0.4 0.2 0 2008 2009 2010 2011 2012 management expenses ratio

Graph 5.10: Management Expenses Ratio of 5 Years

Interpretation-A higher management expenses ratio is unfavourable since it will leave a small amount of operating income to meet interest dividend etc. To get a comprehensive idea of the behaviour of operating expenses, variations in the ratio over a number of years should be analysed. The year to year variations in the management expenses ratio are

temporary in nature arising due to some temporary condition. This ration is a yard stick of operating efficiency of the firm. The above graph depicts that the HDFC Standard Life is having the management expense ratio is 0.029 in year 2012 as compared to 2011 previous year is lower. It shows that the company is trying to reduce its management expenses as low as possible therefore the company is in position meet other obligations. 11. Pre-tax Profit Margin Ratio-Per tax profit margin ratio is the different between per tax profit and net sales or revenue.

Pre-tax profit Ratio= Pre-tax profit/ Net revenue

TABLE-11
Particulars Pre-tax profit Net revenue Ratio

Amount in (Rs.000)
2008 5,214991 15,469,501 0.337 2009 7,902,445 28,226,248 0.2799 2010 13,704,946 48,176,166 0.2845 2011 21,915,907 55,183,763 0.3971 2012 20,231,561 69,556,324 0.2908

Interpretation-The Pre-tax profit margin ratio from the above calculation is worth 0.337 in 2008, it has been decrease by 0.2799 in 2009, it has been increased worth 0.2845 in the year 2010, and it has also increased by 0.3971 in 2011, in the year 2012 it has been decreased by 0.2908. GRAPH-11

pretax profit ratio

0.6 0.4 0.2 0 2008 2009 2010 2011 2012 pretax profit ratio

Graph 5.11: pre-tax Profit Ratio of 5 Years

Interpretation-According to the above graphical representation, the pre-tax is o.337 in the year 2008, and it decreased 0.2799 and 0.2845 in the year 2009 and 2010, respectively, it has been increased 0.3971in the year 2011.but in the last year it has been decreased 0.2908 in the year 2012. 12. Return on capital employed (ROCE) -Here the profits related to the total capital employed. The term capital employed refers to long term funds supplied by creditors and owners. Return on capital employed second type of ROI. Here profits are related to the total capital employed. ROCE Ratio= Net profit earnings/ capital employed

TABLE-12
Particulars Net profit earnings capital employed 2008 (1,287,572) 2,870,695 2009 (1,255,61) 4,763,087 2010 (2,435,094) 7,346,083

Amount in (Rs.000)
2011 (5,029,631) 10,811,786 2012 (2,751,844) 15,848,297

ROCE ratio

(0.4485)

(0.02636)

(0.3315)

(0.4651)

(0.1736)

Interpretation-The ROCE ratio from the above calculation is worth (0.4485) in 2008, it has been increased by (0.02636) in 2009, in the year 2010 it has been decreased to (0.3315) , and again it has decrease by (0.4651) in 2011 and in the year 2012 it been increased by (0.1736). GRAPH-12

Return On Capital Employed

0 2008 2009 2010 2011 2012 Return On Capital Employed -0.5 Graph 5.12: Return On capital Employed Ratio of 5 Years

Interpretation-This ratio would provide sufficient insight into how efficiency the long term funds of owners and creditors are being used. Higher the ratio, the more efficient is the use of capital employed. Thus the ratio provides a test of profitability related to the sources of long term funds. Here another alternatively, it is equivalent to net working capital plus fixed assets.

CHAPTER 7 FINDINGS, SUGGESTIONS &CONCLUSIONS

ORGANISATION STUDY FINDINGS Findings of this review indicate there are a number of things that work well in the organisation including the lack of bureaucracy, the level of autonomy given to staff to make decision, staffs willingness to be flexible and fill in when required, to take on task out side their normal area as well as in addition to their existing work load and the leadership in the organisation, which is described as supportive, encouraging and accessible. However there are a number of issues that are impacting on the organisation and its human resources including: The current structure which has resulted in work overload particularly for the program officer and team leader. The work load of the secretary and in particular his involvement in addressing day to day operational issues. The effective use of technical specialists time for example planning officers and other specialists undertaking administration duties. Clear definition roles, responsibilities and authority levels particularly in administration and also across the organisation. The number of position reporting directly to the program officer and the subsequent impact this has on staff reporting to the position as well as the managers ability to manage effectively. The current skills gap between managers and staff. Number of female employee is less in the organization which affect in the rescue of a girl child. Due to language problem outreach staff is unable to convince the child of other states.

SPECILAL TASKG FINDINGS

Ratio analysis is an important tool for financial statement analysis. Here we studied various ratios to measurement of the financial performance such as liquidity ratios, leverage ratios, profitability ratios and activity ratios. In the previous chapters we made a detailed analysis of HDFC Standard Life from 2008 to 2012. The major findings are given below.

a. The net working capital is decreased in the year 2012 as the negative balance of (4,725,082). b. The current ratio has shown fluctuating trend as 1.45, 1.37, 1.39, 1.09 and 0.63. During 2012, the ratio is declined because of decrease in current assets. c. Quick ratio is also having fluctuated over the 5 years. The quick assets are decreased in the year 2012 as compared to current liabilities. d. Profit margin ratio does not have any profit over the 5 years. The loss is decreased in 2012 as compared to 2011. e. The net profit ratio is high return margin would ensure adequate return to the owners as well as enable a firm to withstand adverse economic conditions when revenues is declining, cost of production is rising and demand for the product is falling. f. Return on equity and return equity and return on total assets both having negative trend over the 5 years because net profit after tax is not good. g. Net retention shows that the company is good at handling the risks. h. Management expenses and Administrative expenses ratio are decreasing as compared to previous year. So that company is able to meet its obligations. I. The return on capital employed ratio would provide sufficient insight into how efficiency the long term funds of owners and creditors are being used. Higher the ratio, the more efficient is the use of capital employed.

CONCLUSION ORGANISATION STUDY- CONCLUSION SATHI set out to reach to more railway platforms in order to help a greater number of runaway children. SATHI have trained all staff to understand the work at a deeper level, the inter-connectivity between activities, and the larger purpose of the organization. Staffs who are not professionally skilled, needed to understand that sathi not become bureaucratic in ways. Sathis work with street children who are addicted to substance abuse and still in touch with their families continued this year. By and large, these children are from slums. Sathis work

with them bears good results, with 60% now going to school. This work needs to spread to other major metros in the country studies have developed exploratory frameworks that indicate the next research steps to be taken up. Sathis effort towards writing case studies and analysing the cases has not been going very well. The senior staff at Sathi still feels inadequate in presenting a case study. This may prove to be a block in Sathis growth. Sathi can raise funds only when sathi can push the frontiers of knowledge and practice and not restrict funds only for repetition or expansion. Though Sathis work has spread from Bangalore in the South to Gorakhpur in the North, it is getting difficult to manage and coordinate the scale of work. However, this management issue is a challenge that can be handled to some extent by continuous training and interaction with field staff. Though technology and distance learning programmes do make this possible, sathi lack the mental aptitude and determination to learn from technology driven communication. SATHIS work with Child Welfare Committees (CWCs) has increased in the year. Sathi has established contact with all 300 CWCs of the country through newsletter. Bringing 28 CWCs of Karnataka on one platform for sharing the work was a successful achievement. This effort has helped in clearing any negative feeling between the CWCs and Government and has generated an environment of harmony between them. There is an increasing need for senior staff members to become more proficient in English communication, both in writing and presentation. While some took up the challenge and are improving slowly, others unfortunately have given up on the learning. Sathi has produced a short 18-minute film on its field activities, which is an overview of the rescue of children and reunion with parents. sathi have to take care that the cost of the film is under control. Sathi had difficulty in sustaining collaboration with Prayas (New Delhi), Ehsaas (Lucknow) and HCHW (Hyderabad). Sathis work on post family-reunion support and follow-up is not going too well. The quarterly telephonic follow-up has now shown a pattern. The survey on retention of children at home especially for cases with difficulties is ongoing. In the visits to 150 cases of children with difficulties, the retention was almost 70%, to pleasant surprise.

SPECIAL TASK CONCLUSION HDFC STANDARD LIFE has been one of the best life insurance service providers in India. It has the excellent quality service provider to their customer. The overall performance of HDFC STANDARD LIFE is good compared to other service providers. It got fifth position in the insurance industry. They share a very good rapport with the customers. This financial condition is not good from year to year. It is in loss condition from past five years. Its debtequity ratio is good. Because of that the company is in a good condition to get survival in the market. It is selling more policies from year to year that means the sales percentage is increasing from many years it is the signal to the growth of the company. Presently it is incurring more expenses and market share is very less compare to other competitors like LIC, ICICI Prudential etc. The liquidity ratios are useful in credit analysis by banks and other suppliers of short term loans. Ratios analysis is equally useful for assessing the long term financial viability of a firm. The long term solvency is measured by the leverage and profitability ratios which focus on earning power and operating efficiency. Ratio analysis reveals the strength and weaknesses of a company in this respect. The leverage ratios will indicate whether a firm has a reasonable proposition of various sources of finance or whether heavily loaded with debt in which case its solvency is exposed to serious strain. The various profitability ratios would reveals whether or not the firm is able to offer adequate return to its owner consistent with the risk involved.

ORGANISATION STUDY SUGGESTION This report provides a structural option to assist in addressing these issues, which if implemented would assist the efficiency and effectiveness of the SATHI. In accordance with the findings of this report it is suggested that the SATHI Consider the findings of this structural review. Creating an administration support team to deliver administration support across the organisation. Establishing a secretary unit engagement, public relation and strategy and policy in order to focus on the delivery of strategic plan and build relationship with the community. Reducing the number of staff reporting directly to the program officer by creating coordination roles in the areas of finance and administrative services. These positions would be created through the expansion of existing roles. Establishing resource sharing option with other non governmental organisation. Accept the findings and structural option put forward in this report and instruct the secretary to implement the structural option and other opportunities for improvement. In implementing the structure the secretary should Clarify roles, responsibilities, level of authority and reporting relationship with all staff Communicate the new structure to all staff and seek their feedback. Review current position decription and reduce the number of performance measure. Review the classification levels of impacted positions. Discuss the new structure with impacted staff and provide staff with the opportunity to make comment. Address any issue associated with the implementing the new structure. Review other opportunities for improvement included in this report. More number of female employees should be recruited. Outreach staffs should be given training on various languages so that they can convince runaway children of other states.

SPECIAL TASK SUGGESTION Suitable measures should be taken for improving short term solvency position, current ratio and working capital. The company should adopt efficient cash management system so as to invest surplus cash in profitable ventures. HDFC STANDARD LIFE INSURANCE should take necessary steps to maintain ratios analysis, as far as possible at standard ratio. It is observed that the cash management of the company is quite effective; therefore the company must see that the same level of management is maintained continuously. The company should continue to maintain a balance between cash inflow and cash outflow. As excess of cash inflow leads to unnecessary accumulation of cash and excess of cash outflow leads to shortage of cash available for day to day purpose.

BIBLIOGRAPHY & ANNEXURE

Bibliography & annexure

Books Referred Websites www.sathiindia.org www.hdfclifeisurance.com www.wikipedia.com www.indianlifeinsurance.com .FINANCIAL MANAGEMENT- M N Arora.

ANNEXURE 1. Balance Sheet as at march 31,2012

SOURCES OF FUNDS SHAREHOLDERS FUNDS: Share Capital Share application money received pending allotment of share Reserve and Surplus Credit / [Debit] Fair Value Change Account Sub-Total BORROWINGS POLICYHOLDERS FUNDS: Credit / [Debit] Fair Value Change Account Policy Liabilities Insurance Reserves Provision for Linked liabilities Add: Fair value change Total Provision for Linked Liabilities Sub-Total Funds for Future Appropriations

2012 (Rs.000)

2011 (Rs.000)

2010 (Rs.000)

2009 (RS.000)

2008 (RS.000)

19,680,000 ----

17,958,180 ----

12,706,359 -----

8,007,148 287,391

6,192,718 ---

552,892 184,435

552,892 (77,610)

5,52,892 3,881

65,902 -----

65,902 73,105

20,417327
------

18,433,462
------

13,263,132
--------

8,360,441
------

6,331,725
------

205,087

(296,885)

193,745

91,247

209,569

37,666,908 -------

29,092,419 -------

24,366,747 ------56,317,976

17,391,531 -------25,934,264 2,58,449 28,516,763

11,487,996 ------9,732,781 2,203,309 11,936,090

127,701,636 84,085,083 27,516,164

(15,302147) 3,133,608 59,451,584

155,217,800 68,782936

193,089,795 97,578,470 1,490,013 586,395

84,012,076 --------

45,999,541 --------

23,633,655 --------

Provision for lapsed policies 1,064,831 unlikely to be revived Surplus Shareholders TOTAL APPLICATION OF FUNDS Allocated to --------

531,970

246,951

59,458

25,516

-------

--------

-------

--------

216,061,966 117,130,297 97,522,159

54,419,467

29,990,896

INVESTMENTS Shareholders Policyholders Assets held to cover Linked Liabilities LOANS FIXED ASSETS CURRENT ASSETS Cash and bank balances Advances and Other Assets Sub-total (A) CURRENT LIABILITIES PROVISIONS Sub-Total (B) 3,030,176 4,917,758 7,947,934 12,673,016 187,617 12,673,016 4,108,660 5,534,969 9,643,629 8,820,225 208,813 9,029,038 4,493,238 4,082,489 8,575,727 6,129,149 122,019 6,251,168 3,363,556 1,961,980 5,325,536 3,874,652 30,845 3,905,497 2879622 990,106 3,869,728 2,658,567 28,729 2,687,567 40,366 1,143,777 30,248 1,451,346 18,618 1,331,800 12,638 736,054 29,356 601,345 6,304,757 43,415382 4,291,597 30,152,727 4,213,064 23,299,043 59,451,584 1,529,743 17,782,886 28,516,763 1,380,910 11,659,010 11,936,090

155,217,800 68,782,936

NET CURRENT ASSETS (C) = (A - B) MISCELLANEOUSEXPEND ITURE(to the extent not written off or adjusted) DEBIT BALANCE IN PROFIT AND LOSS ACCOUNT Deficit in the revenue account (Shareholders account) TOTAL

(4,725,082)

614,591

2,324,559

1,420,039

1,182,432

14,664,966

11,913,122

6,883,491

------

-------

------

-------

-------

4,421,364 54,419,467

3,165,753 29,990,896

216,061,966 117,130,297 97,522,159

2. REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2012

Particular Premium earned(net) (a) Premium (b) Reinsurance ceded (c) Reinsurance accepted Sub total Income from investments (a) Interest, Dividends &Rent-gross (b) Profit on sale/redemption of investment (c) (loss on sale/redemption of investment) (d) Transfer/gain on revaluation/change in fair value (e) Appropriation/expropriation Adjustment Account (f) Amortization of(premium)/discount on investments Sub Total Other income (a) Contribution from the shareholders Account (b) Other income Sub Total Total (A) Commission Operating expenses related to insurance business Provision for doubtful debts Bad debts written off Provision for tax Fringe benefit tax Provision (other than taxation) (a) For diminution in the value of investment(net) (b) Other Total (B) Benefit paid (net) Interim bonuses paid Terminal bonuses paid Change in valuation of liability against life policies in force (a) Gross (b) Amount ceded in reinsurance (c) Amount accepted in reinsurance Total (C)

2012 Rs.000 70,051,044 (494,720) ----69,556,324 6,214,217 9,455,158 (1,641,870) 42,832,799 413,649 (45,764)

2011 Rs.000 55,646,937 (463,174) ----55,183,763 4,451,849 2,034,073 (5,472,507) (18,206,519) ---(38,257)

2010 Rs.000 48,585,616 (409,450) ----48,176,166 2,769,363 3,415,246 (1,123,008) 583,524 ---(56,904)

2009 (Rs.000) 28,558,656 (332,408) -------28,226,248 1,589,497 1,043,415 (411,914) 101,405 ------(65,762)

2008 (Rs.000) 28,558,656 (229,625) -------15,469,501 689,655 944,930 (14,974) 2,158,993 ----(60,160)

57,228,189 3,559,448 189,042 3,748,490 130,533,003 5,254,973 14,976,588 ---------

(17,231,361) 5,588,221 6,148,951 355,473 6,504,424 44,456,826 4,248,904 17,600,683 ---------66320 -------21,915,907 6,812,692 611 4,194 3,248,208 324,740 3,572,948 57,337,335 3,512,586 10,129,791 ---------62,569 -------13,704,946 5,014,603 580 3,363

2,256,641 1,450,397 232,997 1,683,394 32,166,283 2,099,268 5,767,403 -----------------35,784 ---------------7,902,445 1,745,350 300 -------

3,718,444 1,397,003 232,709 1,629,729 20,817,657 1,203,252 3,984,948 ---------------------26,791 ------------5,214991 448,337 417 ------

--------20,231,561 13,378,943 1,013 2,725

95,263,954 (254,601) --108,392,034

13,454,228 602,796 ---20,874,521

37,807,169 102,868 ----42,928,583

22,625,262 (141,054) ------24,229,858

15,247,633 (119,237) ------15,577,150

Surplus/(Deficit) (D)=(A)-(B)-(C) APPROPRIATIONS: Transfer to shareholdersAccount Transfer to Other Reserves Funds for future appropriation-provision for lapsed policies unlikely to be revived Balance being funds for Future Appropriations Transfer to Balance sheet beingDeficit in the Revenue Account (Policyholder Account Total (D) The total surplus as mentioned below: (a) Interim bonuses paid (b) Terminal bonuses paid (c) Allocation of bonus to policy holders (d) Surplus shown in the Revenue Account (e) Total Surplus:[(a)+(b)+(c)+(d)]

1,909,409 472,930 ---532,861 903,618 ----

1,666,398 794,984 ----285,019 586,395 -----

703,806 516,341 --187,465 ----------

33,970 ---------------33,970 ------33,970

25,516 -------------25,516 -------25,516

1,909,409 1,013 2,725 1,582,529 1,909,409 3,495,676

1,666,398 611 4,194 1,077,679 1,666,398 2,748,882

703,806 580 3,363 941,065 703,806 1,648,814

33,970 300 -------866,768 33,970 901,038

25,516 417 ------762,213 25,516 788,146

3.PROFIT &LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2012

PARTICULAR Amount Transferred from the policyholder Account Income from Investments: (a) Interest,Dividends&RentGross (b) Profit on sale/redemption of investment (c) (loss on sale/redemption of investment) (d) Transfer/gain on revaluation/change in fair value (e) Amortisation of(premium)/discount on investments Sub Total Other Income Total (A) Expenses other than those directly related to the Insurance business Bad debts written off Provision (other than taxation) (a) For diminution in the value of Investment (net) (b) Provision for doubtful debts (c) Others Contribution to the policyholders fund Total (B) Profit/(loss)before tax Provision for taxation Profit/(loss) after tax APPROPRIATION (a) Balance at the beginning of

2012 Rs.000 472,930

2011 Rs.000 794,984

2010 Rs.000 516,341

2009 (Rs.000) -------

2008 (Rs.000) ------

289,102 49,152 (487) -----

302,367 13,924 (35,870) 51,887

242,109 98,694 (11,142) (21,384)

126,836 114,192 (12,470) (23,909)

138,496 7,989 (6,933) (6,594)

(2,634)

(2,965)

561

(2,375)

(8,926)

335,133 3,522 811,585 3,981 ---

1,124,327 300 1,124,627 5,307 ---

308,838 531 825,710 12,596 ----

202,274 764 203,038 8,252 -------

124,032 3,650 127,682 18,251 --------

------3,559,448 3,563,429 (2,751,84 4) --(2,751,84 4) (11,913,1

-------6,148,951 6,154,258 (5,029,63 1) --(5,029,63 1) (6,883,49

----------3,248,208 3,260,804 (2,435,09 4) --(2,435,09 4) (4,421,36

--------------1,450,397 1,458,649 (1,255,61 1) ----(1,255,61)

---------------1,397,003 1,415,254 (1,287,57 2) -----(1,287,57 2) (1,878,18

(3,165,75

the year (b) Interim dividends paid during the year (c) Proposed final dividend (d) Dividend distribution tax (e) Transfer to liabilities on account of employee benefits Profit/(loss) carried forward to the Balance Sheet Earnings per Share Basic/Diluted

22) --------(14,664,9 66) (1.51)

1) ---------(11,913,1 22) (3.28)

4) ----------(27,033) (6,883,49 1) (2.42)

3) -------------------(4,421,36 4) (1.83)

1) -------------------(3,165,75 3) (2.92)