http://www.vikasmaitri.org

Website for rural and tribal development

Voluntary

Vikas Maitri

Develoment

Society in

Jharkhand, India

home

adivasis

churches

about us

news-bulletin

Our Company "Adivasi Panch Bachat Ewam Niwesh Limited"  is special in the sense that it has been floated by the villagers in the year 1997 and who are also participating in all the business activities.  The main objectives for which the Company has been established are to take concrete steps for the economic development of Adivasis; in an organized way which  strengthens their self-reliance.

First of all, I would like to draw your attention to the fact that our Company is fulfilling all the statutory obligations but at the same time it has maintained  its unique characteristics.  This Company is directing its efforts at membership drive  towards people who are economically the poorest of the poor.  Secondly, our Company has provided for limiting the share amount of individuals so that more and more members may be accommodated.  This is in accordance with our Adivasi traditions in which each persons has the right to enjoy the benefits of resources in an egalitarian manner.  Thirdly, the Company shares are not opened to the general public but are placed privately to those who are needy and who want to participate in its business activities.  Therefore, it is obvious that our Company is severely restricted in raising large capital. 

I would like to draw your attention to another problem that we have to face.  As already said we have limited amount of capital which is shared among the maximum number of members. This results in the difficulty of complying Section 53 of the Company Act according to which it is obligatory to send required documents to each and every shareholder.  We have incurred disproportionate expenditure on stationary, printing and postage.  Another difficulty is that we have to send details of each present and past members annually to the Registrar of the Companies under Section 159, the preparation of which takes considerable time and manpower. 

SHARE CAPITAL

Till date our Share Capital is Rs. 584,710.00 only whereas the authorized capital is Rs. 1,000,000.00.  In the first year we were able to raise share capital of Rs.460,580.00.  In a

 second year, third year and fourth year this increase to Rs.55,230.00 of Rs. 32,350.00 and Rs.36,550.00 which is not satisfactory.  In the rural areas we are in direct contact with about 7564 families but the share was contributed by only 1396 families.  This means that we have reached only 18% of the population.  The rest 82% family members are yet to become the shareholders.  It is important that we take a serious note of this fact.  

DEPOSITS BY MEMBERS

The members have deposited up-till now Rs.2,420,645.00 with us.  In the first year the deposit was 554,065.00.  In the second year, third year and fourth year the deposits were Rs.593,305.00, Rs. 591,616.00 and Rs.677,708.00 respectively.  The total withdrawals in the respective years were as follows: first year - nil, second year - Rs.354,450.00, third year - Rs.460,450.00 and the fourth year - Rs.665,952.00.  In this withdrawal the Company has given to its members a sum of Rs.118,619.95 as interest.  In my view there is a need to increase deposits.  

INVESTMENT BY TYPE OF BUSINESS

The Company has to-date invested in commercial banks to the tune of Rs.1,993,449.00.  In addition, the Company has invested in business to the tune of Rs.978,742.05.  The Company started this business from the third year onwards.  There are three types of business in which the Company has invested the money:  readymade garments and cloths, trading of palm-leaf for mat making and trading in sewing machines.  In these, respectively Rs.877,593.00, Rs.72,485.25 and Rs.28,663.80 have been invested.  

It is quite difficult for a new Company to establish its market.  Even though we tried our best to start sale centers in different localities.  Initially we had to depend on advertisement for promoting sale.  As earlier said, the business was started in

 the  third year and the volume of sale on that year was quite encouraging.  However, this year there is a slow down in the sales volume.  The reason may be that we had to compete with local traders who reduced their rates. This year, the Company established 4 centers of sale and was able to sell goods worth Rs.252,270.00.

OPPORTUNITIES OF EMPLOYMENT

In the activity of sale of garments and making of readymade garments only women were given training and an opportunity to earn.  A total of 84 women earned some money.  They stitched local design of garments such as nightie, petticoat, blouse and under garments.  The Company paid them as wages respectively Rs. 7,556.00 and Rs. 100,708.00 in the third and the fourth year.

From this year an effort has been made to give training to unemployed Adivasi youth in Electronics.  These boys have already produced voltage stabilizers, emergency light and other equipment.  The Company has already started marketing these goods.  The Company is also encouraging trained youth to sell local honey for which the Company is providing the marketing facilities.

CREDIT TO MEMBERS

Since the last two years the Company has started giving credit to its members.  To start with only a small group of people have been selected and assisted with purchasing equipments, setting-up small business etc.  For future special planning is being made to increase the number of credit recipients in an organized way.

DISTRIBUTION OF DIVIDENDS

Up till now the Company has earned a profit of Rs.117,699.26.  After paying income tax and setting aside some fund in the reserve it paid a dividend of Rs.29,801.00.  This year however, the Company incurred a loss of Rs.16,709.00.

I thank all the share-holders for the keen interest shown in the Company as well as participating in the business activities.

This site is designed by Dominic Bara, Vikas Maitri