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Foreword
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FOREWORD
Forum for Rural Women Ardency Development (FORWARD) is a nongovernmental organization which
has been headed by professional women group. The organization begins its working through Sunsari and
Morang districts eastern part of Nepal. The organization has been working in Socio- economic development
to the poor vulnerable people and their communities.
FORWARD plays an affective role to their target groups on poverty reduction since fourteenth anniversaries
assortment with socio-economic programs, FORWARD's major program is microfinance, similarly as others
programes: formal/non formal education, enterprises development, agriculture development with its new
technology, awareness campaign on health nutrition, capacity building to client and staff and other associate
stakeholders.
Two years before FORWARD had big loosed, because of unexpected event with our former Executive director
-Late Dinesh Chaudhary was unexpected untimely demised. So it had shocked to the team of FORWARD
and gapped on running efficiently to the Organization and we felt gap of his absence. The Organization
wills always gapping space for his heart-breaking memory and good remembers at all-times inspires to
towards the FORWARD team with will be promoting for better performance for poor and vulnerable
communities.
I would like to thank all of my members, advisors, executive boards, honorary members, staffs, and clients
and all others of regulatory NRB, RMDC, related District Development Committee (DDC), District Administration
Office (DAO) and other banks of St. Charted Bank, Everest Bank, Himalayan Bank, Bank of Kathmandu,
NIC Bank, Clean Energy Bank, Citizens Inte. Bank, Siddhartha Bank, with all other donors of Plan Nepal,
UNICEF, ADB, CADP rest of other well-wishers NGOs and Microfinance Networks/Partners whose are
working for poverty reduction and poverty throughout from the country.
Similarly, my hearty appreciation to our ex-executive directors Jayanti Rai and Laxmikrishna Shrestha they
had fully supported to effort their staff team whose were always inspirited to all staffs toward the FORWARD.
FORWARD ANNUAL REPORT 2009
Also I like to thank to all executive board members, staff team of Hira Thandar, Raj kumari, Lalita, Dhiren,
Bachan, Mahesh Pradip Radha Mahesh Uraw and all Branch Managers, all motivators, Anita square and
other team of runners. Staffs have been hard working and affording commitment with accountable and
transparency work towards the FORWARD, which gets big support from donors and stakeholders to grow
up the organization. This report sickouts the progress and stage scenario of the Organizational up to
2065/066 (Mid July 2008 to Mid July 2009).
I would be grateful to all supporters who were contributing to perpare the annual report. Finally I shall
commitment to be improved of other annual reports is further to make better reform and more effective
organizes in computer with previous reports. I'll keep accepting to get good suggestions and comments from
all related stakeholders, members and funding agencies.

………………..
Bhagbati Chaudhar
Chairperson
A
Editorial
Editorial
EDITORIAL

FORWARD
Editor
Bhagbati Chaudhary

Contribution
Bhagbati Chaudhary
Jayanti Rai
Hira Thandar
Rajkumari Tabdar
Laxmi Krishna Shrestha
Dhirendra Majhi
Alok Mishra
Field Officers
Branch Managers
other associate staffs
FORWARD ANNUAL REPORT 2009

Published by
Forum for Rural Women Ardency Development
(FORWARD)
Duhabi-3, Sunsari, Nepal
Tel: +977-25-540456, 1-4223055
Fax: +977-25-540610, 1-4223055
Email: forward@wlink.com.np
Website: www.forward.org.np

Print:
Nepal Printing Support
Anamnagar, Kathmandu
Tel: +977-1-4265821
B
Content
Content

CONTENT
Foreword, Editorial, Content
Acronyms and Abbreviation
BRIEF INTRODUCTION .................................................................................................................................................... 1-6
Background .................................................................................................................................................................... 1
What, Why, How, When And Where Is Forward ............................................................................................................ 2
Vision, Mission And Goals And Objectives ..................................................................................................................... 3-4
Major Activities, Key Strategy And Major Program ....................................................................................................... 5
1. MICROFINANCE DEPARTMENT ...................................................................................................................................... 7-21
1.1 Introduction...................................................................................................................................................... 7
1.2 Year-wise progresses outreach of staff, member and borrowers: ....................................................................8
1.3 Year-wise financial progresses on Portfolio: ..................................................................................................... 9
1.4 Year-wise Portfolio Trend .................................................................................................................................. 9
1.5 Yearly sector-wise Investment ......................................................................................................................... 11
1.6 Year-wise Income & Expenditure ...................................................................................................................... 12
1.7 Branch-wise Outreach progress upto Mid July 2009 ....................................................................................... 13
1.8 Branch-wise Portfolio Progress upto Mid July 2009 ........................................................................................ 14
1.9 Branch-wise Member on Cast and Ethnicity upto Mid July 2009 .....................................................................15
1.10 Policy of Microfinance:..................................................................................................................................... 16
1.11 LOAN PRODUCT: .............................................................................................................................................. 17
1.12 Savings ............................................................................................................................................................ 18
1.13 Micro - Insurance: ............................................................................................................................................ 18
1.14-17 Staff Training, Internal Audit, Supervision, Monitoring & Client Training ...........................................................19
1.18-19 Major activities of Micro-Finance Program & Major activities of Micro-Finance Program ................................20
2. SOCIAL DEVELOPMENT DEPARTMENT........................................................................................................................... 22-25
2.1 Introduction...................................................................................................................................................... 22
2.2 Major Activities................................................................................................................................................ 22
2.3 Child centered teaching learning program ........................................................................................................ 23
2.4 J.F.P.R. with Capacity building:......................................................................................................................... 23
2.5 Poverty Reduction with Project: ....................................................................................................................... 23
2.6 Campaign against domestic violence for Women and Children ........................................................................24

FORWARD ANNUAL REPORT 2009


2.7 Commercial Agriculture Development Project CADP) ....................................................................................... 24
3. INSTITUTIONAL DEVELOPMENT DEPARTMENT.............................................................................................................. 26-28
3.1 Introduction...................................................................................................................................................... 26
3.2 Major Activities institutional department ......................................................................................................... 26
3.3 Develop Member Expansion ............................................................................................................................. 27
3.4 Administrative Institutional working process.................................................................................................... 27
3.5 Capacity building program................................................................................................................................ 27
3.6 Staffs training and exposures ........................................................................................................................... 28
4. Annual General Meeting ................................................................................................................................................. 29-31
5. Microfinance Article ....................................................................................................................................................... 32-35
6. Community voices .......................................................................................................................................................... 36
7. Organizational Chart........................................................................................................................................................ 37
8. Major Working Experience Of The Forward Up To Fourteen Years:.................................................................................38
9. Forward's Fourteen Years Financial Journey................................................................................................................... 39
10. Financial Summaries ...................................................................................................................................................... 40-46
Balance Sheet, Income Statement, Cash Flow & Microfinance Summary only
11. Condolence..................................................................................................................................................................... 47
12. FORWARD's Working Area in map ................................................................................................................................. 48
C
A c r o n y m s a n d A b b r e v i a t i o n s
Acronyms and Abbreviations

FORWARD Forum for Rural Women Ardency ROA Return on Assets


Development
ROE Retrun on Equity
NGO Non Governmental Organization
LLP Loan Loss Provision
INGO International Nongovernmental
MFI Microfinance Intermediary
Organization
OSS Operational Self sufficiency
DDC District Development Committee
ACRONYMS & ABBREVIATIONS

FSS Financial Self sufficiency


DAO District Administration Office
RR Repayment Rate
VDC Village Development Committee
PAR past Arrears Rate
DEO District Education Office
OD Over Due
CEO Chief Executive Officer
N/A Not applicable
AGM Annual General Meeting
GDP Gross domestic product
RMDC Rural Microfinance Development
Center GNP Gross national product

NRB Nepal Rasta Bank CADP Commercial Agriculture


Development Project
ADB Asian Development Bank
MOAC Ministry of Agriculture and
UNICEF United Nation International Children
Cooperatives
Fund
DOA Development of Agriculture
CO Community Mobilize
ICM Integrated Crop Management
NFN NGO Federation of Nepal
IPM Integrated Pest Management
MFS Micro-finance Summit
SRI System of Rice Intensification
CCOSP Child Center Out of School Program
IDF Integrated Development Foundation
POE Parenting Orientation Education
BRAC Bangladesh Rural Action Committee
FORWARD ANNUAL REPORT 2009

PO Partner Organization
MEDEP Micro Enterprise Development
IP Implementing Partner
Program
SLC School Living Certificate
M-CRIL Micro-Credit Ratings International
PRA Participatory Rural Appraisal Ltd.
PWR Participatory Wealth Ranking EDA EDA Rural System India
PGT Pre Group Training MIS Management of Information System
CGT Conformation Group Training PUA Poor Users Association
GRT Group Recognization Test PUC Poor Users Community
MF Micro-Finance PN Per Annual
IOR Inflation of Rate
D
B r i e f I n t r o d u c t i o n

BACKGROUND:
BACKGROUND:

Forum for Rural Women Ardency Development (FORWARD) is a nongovernmental Microfinance Organization,

INTRODUCTION
which is located in the eastern part of Nepal. The organization is headed by like-minded committed professional
women group. FORWARD works for backward poor vulnerable, indigenous, tribal people and their communities
to awareness- campaign and advocacy for their rights to empowering women. The organization develops trusts
from supporters with the base of cooperation idea's and collective views to significant role in poverty alleviation
and community development through women and children. The organization improves its traditional culture and
bad-habits though microfinance to uplift the poor communities.

FORWARD had been established in B.S. 18 Baisakh, 2052 (1st May, 1995). And it started micro credit since
2053 B.S. (March 1996) to serve the poor marginalize women groups and their communities. It was licensed by
NRB (Nepal Rasta Bank) Central Bank of Nepal as a Micro-finance Intermediary at 15 Pause, 2059 B.S. (30
December, 2002) to runs as a formal service provider of Microfinance. This Organization has been working
together with Rural Micro Finance Development Centre (RMDC), Nepal Rasta Bank (NRB) Central Bank of Nepal,
Other Financial Institutions Himalayan Bank, NIC Bank, St. Chartered Bank, Bank of Kathmandu, Citizen Bank,
Clean Energy Bank, Siddhartha Bank, Sri Invest Finance Com. FORWARD Cooperative, Asian Development
Bank (ADB), PLAN Nepal, UNICEF, CADP, different Commercial Banks, other local agencies, and related District
Development Committee, District Administration Office, District Education Office, Regional and District Health
and Agriculture development Implementation of Units (IOU) and other various funding NGOs, INGOs.

FORWARD ANNUAL REPORT 2009

1
B r i e f I n t r o d u c t i o n
What is forward?
Forward is a Nongovernmental Financier Intermediary (FI) organization, which organizes
different community based Social- economic sustainable development programs in the
rural and semi urban areas to the poor vulnerable groups.

Why is Forward?
v Empowers the civil societies to enlistment the rights and working as a collaboration
team for positive change in communities.
v The roles of active participation and leadership of women make people aware for
INTRODUCTION

their community development on human right, peace and good governance.


v To develops and promotes of the community's youths (girl and boy) for facilitate
in social mobilization on their common issues and concerns.
v To promote the community base resource centers, for effective organize on system
continuous and sustainable development.
v To supports the marginalize women groups with micro finance for strengthen of
their socio-economic status.

How is Forward?
Forward believes and organizes to motivate groups with their rural ethnic community's
women. Those rural community's women had been come together, and they were organizing
series of discussion meeting to inspiring dedicated affordable professional groups from
different communities, after their series of meetings, they could conclude to form the
FORWARD as an organization.

When is Forward?
The Organization was established in B.S.18th Baishakha 2052 (May 1, 1995). It has licensed
on Financier intermediary Act in Poush 15, 2059 (Dec 30, 2002) from Nepal Rasta Bank
Limited (Central Bank) Kathmandu. It has also affiliated in Social Welfare Council in BS 24
Magh 2052 (7 Feb., 1996) Kathmandu. And it has affiliated and partnership with various
FORWARD ANNUAL REPORT 2009

Networks RMDC in BS Jeshtha 2060 (June,2003), member of NGO federation of Nepal,


Microfinance Summit National and international, MIFAN Kathmandu etc.

Where is Forward?
The central office of Forward is located in Duhabi Urbanshing VDC ward No-3, Sunsari
District, Koshi Zone Nepal, it's contact liaison point Babarmahal Kathmandu, similarly Area
Office is in Duhabi Sunsari and FORWARD's branches are in Aurabani Bhamari, Khanar,
Duhabi, Inruwa, Pakali, Laukahi, Chimadi, Dewanganj, and Dharan of Sunsari District and
Hatimuda-Bashbari, Belbari, Tetariya, Biratnagar, Urlabari, Letang and Kerabari in Morang
District, Dhankuta in Dhankuta District, Biratabazar and Dhudhe in Jhapa district, Fikkal
and Ilam in Ilam district, Phidim in panchthar District, Phatepur in Saptari District and
2 Gaighat and Katari in Udaypur District.
B r i e f I n t r o d u c t i o n

VISION,
VISION, MISSION
MISSION / GOAL:/ GOAL

INTRODUCTION
VISION :

h Develop the Community on Self- Sustainable Creative Society.

MISSION :
h Raise the voice against exploitation and custom of strengthen the Human rights.
h To makes the community self-dependent in the socio-economic and political
sector by optimum utilization of local resources.
h Increase the memberships in rural poor areas to spread out the organization
and improves the local traditional habits.
h To runs the income-generation activities for develop the marginalizes poor
communities.
h To makes effective information media, which existing in local level and access
of that linkage in the market.
h Mass mobilization and enhancement as poverty reduction through microfinance.

GOAL: FORWARD ANNUAL REPORT 2009


h Expand the organization through increasing group and membership in rural and
semi urban areas.
h Improves the social and financial condition of women.
h Access to the community on their resources, their human rights and their good
governance.
h Create awareness raising microcredit program and other community based
(Education formal non formal, Health and Hygiene, Nutrition, Institutional
development
h Awareness Campaigns against the girls and women trafficking).
3
B r i e f I n t r o d u c t i o n

OBJECTIVES:
OBJECTIVES:
INTRODUCTION

OBJECTIVES:

v To develop the micro finance groups as autonomous, self sustain and institutional with
good capacity of its leaders.
v To makes as much as financial resources accessible for women groups.
v To makes awareness for rural people of good health and social practices.
v To capacitate local groups in cooperation of different issues with different agencies.
v To improve the social and economic condition of women through credit mobilization.
v To aware the women right and humanitarian development for poor vulnerable people.
v To provides group and individual skills for income generation and enterprises activities.
v To conduction social community based trainings on various interlink with agriculture
and microfinance.
v Ensure the coordination and linkages with governments, national and international
agencies and related financial institutions.
FORWARD ANNUAL REPORT 2009

4
B r i e f I n t r o d u c t i o n

MAJOR
MAJOR ACTIVITIES:
ACTIVITIES:

INTRODUCTION
MAJOR ACTIVITIES:
h Data selections of population ethnicity, poor marginalize which keeps out the situation
reflection of poor and backwards.
h VDCs/DDCs orientation for programe operations.
h Providing self-employment opportunity through micro finance facilities.
h To collects the local level small savings.
h To develops the group autonomous and independent.
h To develops the group leaders of women.
h To coordinates with various institutions for Social development and human resource.
h To provides banking service for the poor people whose are engaging on saving and
credit mobilization.
h To improves the Socio- economic status of poor women and children through
Microfinance and other social programs.
h Enhance awareness raising trainings to the poor vulnerable communities.
h Review the programs and project, Business Plan Yearly/ Half yearly / quarterly.
h Develops the MIS Systems in both Computerize and Manually.

KEY STRATEGIES:

h FORWARD has adapted the participatory strategies in order to implement the above
FORWARD ANNUAL REPORT 2009
policies as per the operational nature of various programs. It's formulating the Action
Oriented strategy of the socio-economic programs.
h Active participation of the community level women, it makes automatic empowerment
to upgrade in socio-economic condition of the poor families.
h To generate the innovative concept, collective vision for participatory development
work effort with the team.
h Optimum utilization of local resources in socio-business oriented on sustainable
community development.
h Coordination and cooperation of target group /unites on the community environment
to upgrade sustainable faiths of human right, peace and commitments.
5
INTRODUCTION
B r i e f I n t r o d u c t i o n

This Organization has been operating three departments to serve through their programs of
its sustainable, effectiveness, transparency, economic development on community access with
guiding peace and Human rights, Awareness program for democracy, Educational programs,
and Agriculture/ Livestock and micro enterprise development for women groups.

For effective monitoring and evaluation with better planning - implementation of those three
departments have involved itself by Chairperson Bhagbati Chaudhary, General Secretary Jayanti
Rai Act Di. Laxmikrishna Shrestha, Supervision Sector mentained by Vice chairperson Hira
thandar, Social development department manage by Secretary Lalita Chaudhary and Project
Coordinator Alok Mishra and institutional department admin finance by Dhirendra Manjhi, Raj
Kumari Tabadar and Internal audit sector manage by board of Lalita Chaudhary, Dev Kumari
Shrestha and Sabita Dahal and staffs of audit officers. The section of Supervisor/Monitoring
FORWARD ANNUAL REPORT 2009

manage by Area Managers, and operation management of Branches by all branch Managers,
in charges, motivators on the related department of the organization.

Explained above three departments are bellows:

A. Micro Finance Department,

B. Social Development Department,

C. Institutional Development Department


6
1. Micro
1. MicroFinance
Finance Department:
Department:

1.1 Introduction:

MICRO FINANCE
The main goal of this department is to provide loans without collateral to improve their
socio-economic status of poor vulnerable people and upgrade of their saving habits.
Conducts enterprises trainings for loaner groups members on improve agriculture development,
microfinance industrial trainings and inter group monitoring program, to improve economic
condition strengthen and unity of rural women in their communities.

FORWARD is a local organization in case of Sunsari /Morang districts that has licensed
in BS Paush-15, 2059 (Dec 30, 2002) with Nepal Rastra Bank (NRB) as a financial
intermediary to operate Micro Finance, although it had been worked in Micro credit since
in 2053 (1997). The Organization's program operations in socio- economic development
from 15 years and its progress and proposes plan of operational activities are under the
fiscal year of 2065/2066 (Mid- July 2008 to Mid July 2009) shown below.

FORWARD ANNUAL REPORT 2009

7
1.2 Year wise progresses outreach of staff, member and borrowers:
Mid July Mid July Mid July Mid July Mid July Mid July Mid July
S.N. Particulars 2003 2004 2005 2006 2007 2008 2009

1 Districts 2 2 2 2 7 8 8
2 VDCs 14 16 25 58 123 177 186
3 Municipality 0 1 2 3 7 8 9
4 Branch Offices 2 4 7 12 22 28 28
5 Sub-branch Off 0 0 0 0 0 0 1
6 Total Staffs 4 10 28 58 132 159 174
MICRO FINANCE

7 No of Field staffs 2 6 20 30 56 119 115


8 No of Center 34 91 250 554 1193 1756 2124

9 No of Group 204 568 1321 2768 5784 8347 9733

10 No of Member 1020 2840 6645 13840 28907 41736 48667

11 No of Borrower 528 2215 5759 11842 23272 32008 35645

48667
50000
Member
45000
Borrower 41736

40000
35645
35000 32008
28907
30000

25000 23272

20000
13840
15000 11842

10000 6645 5759

5000 2840 2215


1020 528
0
Mid July Mid July Mid July Mid July Mid July Mid July Mid July
2003 2004 2005 2006 2007 2008 2009
FORWARD ANNUAL REPORT 2009

90 86.67 85.56
80.51
77.99 76.69
80 73.24
70
60 51.76
Member VS Loanee Outstanding VS Saving
50
39.00
40
31.00
30 23.00
26.00
21.00
18.00
20
12.00
10
Mid July Mid July Mid July Mid July Mid July Mid July Mid July
2003 2004 2005 2006 2007 2008 2009
8
1.3 Year wise financial progresses on Portfolio:

S.N. Particulars Mid July Mid July Mid July Mid July Mid July Mid July Mid July
2003 2004 2005 2006 2007 2008 2009

1 Deposit Collection 178752 1434260 5140123 14910683 36718006 73314137 117412713

2 Security Collection 26400 131800 470100 736870 1549656 4135720 2133107

3 Loan loss Reserve 29405 154961 479894 1314347 28455555 5178791 7302336

4 Outside Borrowing 700000 7220000 26276800 53778800 124772650 180913132 371900000

MICRO FINANCE
5 Loan Repayment 100 100 99.98 99.86 99.81 99.85 99.85

6 Operational Self-sufficiency 27.53 98.83 138.21 142.28 143.30 157.08 142

7 Financial Self-Sufficiency 7.12 87.22 94.1 99.32 109 103.29 102

157.08
160
FSS 142.28 143.30 142.71
138.21
140
120 109.00
99.32 103.29 102.00
98.83
100 94.10

80 87.22

60
40 OSS
27.53
20 7.12
0

FORWARD ANNUAL REPORT 2009


Mid July Mid July Mid July Mid July Mid July Mid July Mid July
2003 2004 2005 2006 2007 2008 2009

1.4 Year-wise Portfolio Trend:

Mid July Mid July Mid July Mid July Mid July Mid July Mid July
S.N. Particulars 2003 2004 2005 2006 2007 2008 2009

1 Cum. Disbursement 1796000 14323200 55774200 164164200 406742200 830521200 1406693200

2 Cum. Repayment 325708 6520164 31779469 100261882 264464440 594670094 1104273254

3 Outstanding 1470292 7803036 23994731 63902318 142277760 235851106 302419946


9
1600000000
Disbursement
1400000000
Repayment

1406693200
1200000000 Outstanding

830521200

1104273254
1000000000

594670094
800000000

406742200
600000000

302419946
264464440

235851106
164164200

142277760
MICRO FINANCE

400000000

100261882

63902318
55774200

31779469
14323200

23994731
1470292
1796000

6520164

7803036
325708

200000000

0
Mid July Mid July Mid July Mid July Mid July Mid July Mid July
2003 2004 2005 2006 2007 2008 2009
FORWARD ANNUAL REPORT 2009

Monitoring &
Evaluation
wings
Board Member

Head Office

Internal Audit Unit


Supervision Unit
Area Offices
Branch Offices
10
1.5 Yearly sector-wise Investment

S.N. Particulars Mid July Mid July Mid July Mid July Mid July Mid July Mid July
2003 2004 2005 2006 2007 2008 2009
1 Agriculture 221000 1770000 6894000 20212000 53509500 116638500 204729500

2 Livestock 701000 5589000 21765000 64063000 152529700 291540200 481778200

3 Retail Business 678000 5410000 21067000 62009400 164693000 357599000 605671500

4 Service trade 181000 1443200 5620000 16540300 29089000 55259000 102899500

Small industry 15000 111000 428200 1259500 7921000 8962500 11614500

MICRO FINANCE
5

Total 1796000 14323200 55774200 164164200 406742200 830521200 1406693200

Sector of Investment upto Mid July 2008 Sector of Investment upto Mid July 2009
Agriculture Retail Trade Small Industries Agriculture Retail Trade Small Industries
Livestock's Service Trade Livestock's Service Trade

1% 1%

7% 14% 7% 15%

43% 43%
35% 34%

FORWARD ANNUAL REPORT 2009

11
1.6 Year-wise Income and Expenditure:

Mid July Mid July Mid July Mid July Mid July Mid July Mid July
S.N. Particulars 2003 2004 2005 2006 2007 2008 2009
1 Total Income 19280 1406362 4062250 10801709 24223788 45593954 74234831
1.1 Interest Income 19280 981971 3350437 9568099 21933349 44362186 61995639
1.2 Other Income 0 424391 711812 1233610 2290440 1231767 12239192
2 Total Expenses 70010 1422965 2939101 7592009 16904192 29756418 50332644
2.1 Staff Salary 0 344001 958357 2548163 6218797 10726376 16143863
2.2 Operation Expenses 0 672439 655724 1682104 3387218 5165747 13928982
MICRO FINANCE

2.3 Financial Expenses 40605 280970 1000087 2527289 5613765 11684264 18075397
2.4 Loan loss Provision 29605 125555 324933 834453 1684413 2180031 2184402
2.5 Capital Reserve - - 1123148 3209700 7319596 15837535 23908187

Expenses percentage upto Mid July 2009 Expenses percentage upto Mid July 2009
FORWARD ANNUAL REPORT 2009

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1.7 Branch-wise Outreach progress upto Mid July 2009:

S.N. Branches VDCs Minicipali Staffs Centers Groups Members Borrowers

1 Aurabani 9 - 7 97 486 2429 1912


2 Hatimuda 6 1 8 83 430 2148 1785
3 Duhabi 8 - 5 65 293 1465 1196
4 Khanar 9 1 7 90 509 2553 2042
5 Inaruwa 8 1 6 75 321 1604 1174
6 Pakali 8 1 7 88 431 2158 1709

MICRO FINANCE
7 Belbari 7 - 8 83 437 2131 1718
8 Tetariya 11 - 7 75 426 2127 1755
9 Biratnagar 1 1 6 67 326 1614 1073
10 Laukahi 7 - 5 60 321 1604 1295
11 Chimadi 6 - 6 74 348 1739 1501
12 Urlabari 6 1 7 104 386 1928 1444
13 Dharan 2 1 4 57 249 1247 1080
14 Gaighat 3 1 7 82 407 2033 1531
15 Dewanganj 6 - 4 53 240 1198 936
16 Bahuni 7 - 5 75 333 1663 1120
17 Biratabazar 11 - 6 83 359 1729 1529
18 Fikkal 9 - 7 103 506 2502 1823
19 Ilam 5 1 6 100 436 2247 1352
20 Phidim 7 - 5 78 338 1687 1041

FORWARD ANNUAL REPORT 2009


21 Fattepur 10 - 6 71 386 1932 1213
22 Katari 9 - 5 90 325 1657 1059
23 Dhankuta 7 1 4 78 280 1404 705
24 Rajabiraj 4 1 3 47 152 755 613
25 Letang 3 - 3 43 185 922 443
26 Dudhe 5 - 4 50 210 1051 753
27 Ranke 4 - 5 83 341 1705 1194
28 Kerabari 4 - 3 49 192 955 482
29 Mangalbare 2 - 4 21 96 480 167
Total 186 9 174 2124 9749 48667 35645
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1.8 Branch-wise Portfolio Progress upto Mid July 2009 :
Portfolio Descriptions
S.N. Branches OSS
Deposits Cum. Disbursement Cum. Repayment Out standing Loan loss
1 Aurabani 8094784 120961700 104302022 16659678 329829 153.10
2 Hatimuda 7583000 109464500 91715090 17749410 292834 155.06
3 Duhabi 5229559 65236000 54347422 10888578 202684 144.39
4 Khanar 9214827 123485500 102565920 20919580 347806 168.94
5 Inaruwa 4605099 56048500 45973980 10074520 352119 115.79
6 Pakali 6912957 89519000 71891906 17627094 408762 157.83
7 Belbari 7414226 95499500 78807720 16691780 331568 163.41
8 Tetariya 6664192 83814500 66657690 17156810 483976 154.50
MICRO FINANCE

9 Biratnagar 4320196 62750000 49419711 13330289 388909 146


10 Laukahi 3563149 39261000 30895540 8365460 308909 80.56
11 Chimadi 3217216 38654000 29974870 8679130 211723 121.64
12 Urlabari 4924505 56298000 44206260 12091740 241835 144.45
13 Dharan 2510591 36517000 26897899 9619101 192382 131.59
14 Gaighat 5597044 55847000 42004282 13842718 276854 138.55
15 Dewanganj 2506316 29605500 22801522 6803978 201773 131.67
16 Bahuni 3105121 35976000 26062878 9913122 198262 117
17 Biratabazar 5130878 54520000 40465580 14054420 281088 144.37
18 Fikkal 5983954 58316000 42042520 16273480 325470 137.36
19 Ilam 4047756 37944000 26369530 10574470 211489 110.47
20 Phidim 2954369 27899000 20763347 7135653 142713 103.23
21 Fattepur 3596087 36739000 27333160 9405840 188117 118.41
22 Katari 2478341 24456000 17732025 6723975 134480 107.90
23 Dhankuta 1819176 13968000 8691040 5276960 105539 93.34
24 Rajabiraj 1021677 12884000 9401960 3482040 246491 42.42
25 Letang 811571 7126000 4270570 2855430 57109 70.06
26 Dudhe 1423551 12317500 6812830 5504670 110093 87.60
27 Ranke 1403806 16016000 8719005 7296995 145940 89.92
28 Kerabari 788270 5336000 3070175 2265825 45317 61.17
29 Mangalbare 90495 1234000 67800 1157200 23144 12.69
Total 117412713 1406693200 1104273254 302419946 6787213
FORWARD ANNUAL REPORT 2009

200
169 OSS
153 155 158 163 155
150 144 146 144 144
139 137
132 132
122 117 118
116
110 108
103
100

50

-81 -93 -42 -70 -88 -90 -61 -13


0

-50

-100
e
im i

Pa a
el i
D da
K abi

In ar

Te ari

la i

Ph m
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tn a

uk r
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ab ni

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nk i

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er y

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at n

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ra d

ha r
eb ha
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pu
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ira iy

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n
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an ba
kk
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ga
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n

az
k

lb
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ud
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bi
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14
1.9 Branch-wise Member on Cast and Ethnicity upto Mid July 2009:
S.N. Branches Bramin/Chhetri Indigenous Dalit Mushlim Total
1 Aurabani 36 1744 419 230 2429
2 Hatimuda 100 1191 789 68 2148
3 Duhabi 95 1013 135 222 1465
4 Khanar 272 1920 281 80 2553
5 Inaruwa 76 1156 254 118 1604
6 Pakali 473 1307 293 85 2158
7 Belbari 424 1491 194 22 2131
8 Tetariya 180 1831 84 32 2127

MICRO FINANCE
9 Biratnagar 102 896 463 153 1614
10 Laukahi 53 1144 340 67 1604
11 Chimadi 143 1370 100 126 1739
12 Urlabari 584 1100 178 66 1928
13 Dharan 200 999 25 23 1247
14 Gaighat 145 1202 326 360 2033
15 Dewanganj 3 565 249 381 1198
16 Bahuni 586 967 104 6 1663
17 Biratabazar 392 1038 134 165 1729
18 Fikkal 656 1701 145 0 2502
19 Ilam 896 1638 193 0 2727
20 Phidim 395 1174 118 0 1687
21 Fattepur 279 1386 226 41 1932
22 Katari 307 1201 136 13 1657
23 Dhankuta 388 867 149 1404
24 Rajabiraj 50 460 180 65 755
25 Letang 81 741 97 3 922
26 Dudhe 300 716 23 12 1051
27 Ranke 337 1275 93 0 1705
28 Kerabari 233 605 117 0 955
Total 7786 32698 5845 2338 48667

Cast and Ethinicity Mid July 2009 FORWARD ANNUAL REPORT 2009

12% Dalit

67%
5% Muslim

16% Bahun/Chhetri

Indigenous

15
1.10 Policy of Microfinance:

FORWARD follows the 'Garmin' Clients receive 7- 9 days Pre Group Training (PGT)
methodology for micro finance and clearing Group Recognition Test (GRT), after
service delivery and lending modality all prior process of the group members are becoming
through group guarantee. All groups eligible to obtain the first cycle of loan. For succeed
have been consisted five members, and matured clients eligible for various types of loan
however it consists three to eight which provides micro enterprises, livestock's, housing,
groups is called one center, when it Biogas, Foreign employee, Drinking water and toilet
has eight group is called one full construction as per members pass track record with
Center. Which groups operational performance base of clients. Loans are disbursed
MICRO FINANCE

lending with terrain 2 is to; 2 is to; from Branch Offices with the hand of their Center
1, but in hill 3 is to; 2 with jointly chief. And graduate loaners whose are mobilized
liabilities on repayment installment. first and 2nd loan with good performance on good
The organization's policy of repayment track records, they can easily take 1st,
microfinance is held the meeting in 2nd, 3rd, 4rth and 5fth cycle of loans. Micro
fortnightly for terrain and monthly enterprises and Foreign Employee loaners are
for hilly region, however the system personally responsible with their family liabilities for
of center meetings are slightly as well that loan mobilization although it is in group
as like Garmin model. guarantee of Center model.

Chart of Micro finance Process:

VDC Orientation Community

VDC Orientation Community

Baseline survey /PWR Community


FORWARD ANNUAL REPORT 2009

Conformation Group Training Community

Pre Group Training/ GRT Group

Group /Center Formation Group

Center Meeting/Loan follows (2:2:1) Group

Repayment install basis Group

16
1.11 Loan Products:

General loan: Housing loan:


General loan is a common loan generally it provides Graduate loaner after five years are eligible for housing
entire group members. The loan disburses through loan. The loan provides without collateral, but good
the entire group guarantee of centers member, it past track record and more than 90% attendance in
repays twenty five Installment fortnightly bases in the group meetings. The loan recovery systems of
Terai and 13 installment monthly bases in hill. Normal housing loaners fill up their installments as per terms
interest rate 24% per annual in decline balance. of condition of loan. It allows to loan term period up
Gradually extends loan sizes are 5-10 thousands in to two and half years. Interest charges rate 18% p.a.
each term of loan taken. in decline balance with one month grace period with
pays their undue interest. The loan charges 2 percent
Seasonal Loan : as on procession fees and Loan utilization especially

MICRO FINANCE
Seasonal loan for small trading business producing in purposing of housing and building construction.
seasonal fruits, seasonal vegetables and crops. The
loan provides in the special time of seasonal hat Foreign Employee loan:
bazaars Mella and special occasions. Good Graduate clients eligible for foreign employee loan
repayment track record of clients can be receiving after two years mobilization of general loan.
the seasonal loan, which is already mobilized after According to loan liabilities of their family members
6 months use of common general loan. The systems for lending on the base of collateral as loaner's own
of repayment is installing serially fortnightly in Terai fixed assets. Good past track record and more than
and monthly in hill. Interest charges on this loan 90% attendance in group meetings. The repayment
24% p.a. on declining balance. installment as per terms of conditions of loan and
the base of employments nature. Interest charges
Center Fund Loan: 24% p.a. in decline balance. Apart from the loan
For purpose of emergency medical treatment and product Forward's plans to starts Foreign employee
other emergencies (school enrollment of their child loan on large scheme, when it will gets part of fund
and another options like that). Repayment fortnightly for foreign employee loaners, however it has been
in Terai & monthly in hill, it pays 25 or 13 installments. designed in this situation of the organization
Its interest rate charges 24% p.a. on decline balance.
Alternative Energy Productions:
Live stocks loan: The loan specially use in the bio gas, solar and
The loan for purposes on livestock, domestic animal other alternative productions. All clients are eligible
and agriculture base activities, good clients can for whose baseline survey indication significant to
eligible for livestock loan (16-20) thousands. After get loan. Good past track record and 90%
one year graduate loaner shall be eligible for up to attendance in the group meetings. Interest rate
amount NRs. 25, -30 thousands. The repayment charges 16% p.a. in decline balance with other 2%

FORWARD ANNUAL REPORT 2009


base on fortnightly in Terai & monthly in hill, it pays in service charges as processing fees. The repayment
25 or 13 installments. Interest rate charges 18% per installments as per terms of condition of loan and
annual on decline balance. It also charges 2% of the base of energy productions nature.
service charge.
Drinking Water and Toilet construction loan:
Entreprises Loan: The loan in purpose of drinking water supply tubal,
Graduate loaners (after two years) eligible for small tap and toilet construction. All clients are eligibled
enterprises of loan. Good past track record on loan for whose baseline survey indication significant to
repayment and more than 90% attendance in the take the drinking water and hygiene in sanitary loan.
group meetings of those graduate loaners eligible for Good past track record in loan repayment and more
enterprises. The repayment installments as on terms than 80% attendance in the group meetings, those
of conditions of loan criteria. Interest rate charges graduate loaners get the loan. The normal interest
24% p.a. on decline balance. Apart from the loan rate charges 12% p.a. in decline balance and other
product of Forward's plan, of micro enterprises loan 2% in charge as procession fees. The repayment
starts in the large scheme. Loan utilization is especially installment as terms of fortnightly in Terai and monthly
in purposing of micro enterprises development. in hill as on conditions of loan.
17
1.12 Saving Products
FORWARD collects the local funds from the communities of the working areas, Forward deducts the 5%
amount of the loan amount to Center fund, compulsory / mandatory saving for prior time of five years
after then client however knows that the process and program of microfinance, it can be continuing to
save their money. If the case of withdrawl without maturity of prior times, it takes Rs. 50 in per thousands
from each member. As compulsory (Group saving) saving in each meeting and also the same criteria
of all members of a center. The Institution has to pay 8% p.a. interest in the deposit amount. Forward
also collect the volunteer saving. It is completely withdrawal in anytimes whenever members need, in this
deposit pays an interest 8% per annum. Multi diversity of deposit product "Volunteer, Child, Central fund,
Double Scheme, special" the interest pays at 9-11% per annum. Especially double scheme after fifteen
years, however clients deposit their savings, they will get double amount of their savings.
MICRO FINANCE

Group Saving: the time of loan disburse for example, if the client
Each group members have to compulsory deposited saves their amount of Rs. 5000, she can eligible to
to their groups. All clients have to compulsory save get loan Rs.20,000. No refundable in the period of
and most of the mandatory amount (Rs. 10-100) in loan mobilization. No deduction of their loan amount,
each center meetings. The maturity of this saving saving fixes for condition of loan mobilization period.
almost five years, if clients want to refund, they can Each meeting each client has been increasing their
be refund after five years of their prior times and saving Rs. 20 to 50 as her personal efforts. Interest
5% saving amounts deduct from that savings. It pays pays on deposits 8% p.a.
deposit interest rate of 8% per annual.
Double Scheme Saving:
Volunteer Saving: The double scheme with fix condition for each client
Each group members are eligible for volunteer saving. amount doubles after fifteen years. The maturity
Micro finance member can be save volunteer saving period of this saving more than 15 year each client
up to Rs. 10 to 1000 per times of meetings. The item can keep continuing and they will get back double
is anytime refundable, but sees as on the client amount of their same deposits which they saved.
borrowing. In deposit interest pays 8% per annual. Each meeting each client has to compulsory increase
their saving Rs.10 to 500 as their efforts. Interest
Center Fund Saving: pays to deposits 9. % p.a.
Deducted 5% from loan amount of each loan times
that amount is deposited in their compulsory saving.Child Saving:
Deposit matures for refundable at least, it crosses Special Saving for child hood members for the child
five years. If clients want to refund in the time ofsecurity. Child member's ?? age is almost above 1
immature period, it gets 5% deduct of their total year and only up to the 15 years. The saving scheme
deposits. Interest pays on deposits 8% per annual. necessaries for child date of birth certificate and
nationalities copies of child parents. Saving amount
Special Saving: is refundable after 16 year of child's age, as like
FORWARD ANNUAL REPORT 2009

Special saving saves for Microenterprise clients in child shall be obtained their citizenship card.

1.13 Micro - Insurance:


Social Security (Client Insurance):
Social security fund covers death claim of clients and its premium covers incase of fired, disaster damages
landslide, flooding their houses. Each client gets social security fund (micro insurance) if they already
paid their premium Rs. 50. It promises to pay the compensation to clients and their nominees in case
of loss of life and also recovery gets for the death of notified person at the time of loan mobilization.
They get back different happens with natural death Rs. 3- 6 thousands, When damages of the borrowers
house due to natural calamities like fired, Soil erosion, landslide and other natural disaster the compensation
gets up Rs. 2,000 of each client. Amount pays after assessing by the authorize person of the organization.
To provide another social security amount Rs. 1500 on the period of maternity of baby born, but they
are allow getting only two babies' times, otherwise they are not eligible.
18
Micro - Insurance:
Livestock Loaners: Foreign Employee:
Total amount of livestock loan deduct 3% amount for Compulsory insures for the foreign employee loaners
premium and it gets back If death of their livestock they for their attention of further incident. Compulsory
get back 80% amount of their loan amount for insurance for loan amount of foreign employee
resettlement. loaners almost up to Rs. 50000 -100,000. Each
Enterprises Loan: client pays premium as per company condition.
From Enterprises loan amount Rs. 20 per thousand of After incident of employee /members, the
loan amount pays by all loaners. In case Organization gets first recovery of all lending amount
damage/destroyed of their enterprises they get back 20- after than rest of amount gets back to the client's
40% amount of lending amount to reform their enterprises. family.

MICRO FINANCE
1.14 Develop the Trainee Staffs:
FORWARD has been trained 25 volunteer staffs which of them 9 female 16 male. They have been auctioning
beginner works for microfinance works as trainee staffs and six months of their training time as a trainee
staffs. The process of trainee staffs it takes many exams as on performance base of trainees, if they score
well, they will automatic upgrade as a full staff. If they will score poor they won't be eligible for a full staff
and they have been auctioning their job although they are in trainee period. The end of the fiscal year up
to Mid July 2009 FORWARD has been finished their selection of 25 trainee staffs and it's time, which are
already trained as working staffs under the microfinance. It also has been selected the project staff of 8
mobilizers and one coordinator.

1.15 Internal Audit:


FORWARD has been operated an internal audit section which section audit with financially monitoring. In
microfinance which is sampling branch and under the branches sampling center/unit and groups for loan
analysis, loan utilization, it also monitor center/group quality, proper disbursement and borrowings, bad
debt collection, find out the reason of due date and idea of capacity building for staffs/clients /communities
which all things Under the Institutional department cum in microfinance checks every transaction and whole
accounting system and process of microfinance, its inspection and monitoring can be balance in track or
out of track of whole organization system.

1.16 Supervision, Monitoring & Evaluation:


FORWARD has another section of supervision and monitoring. The section has done daily supervision,
monitoring and evaluation under institutional cum microfinance department, in spite of it has opened

FORWARD ANNUAL REPORT 2009


independent internal audit section for better and effective supervision, monitoring and evaluation system.
It has been always discussed about comments, analysis team work of staffs, either the group members are
utilization their loan in right places or misusing of it. This type of supervision and monitoring has been divided
role in the level of branch, area, and head office (Branch manager, Area field officers, loan Admin, appraisal
officers, HR manager and rest off all officers). Each branch will monitor every 2 months in rotation base,
even with sample centers /groups. Supervision system moves loan utilization, analysis proper investment,
bad debts collection, reason of overdue, idea generation and capacity building and track performance of
employees/centers. And also it has checked about practically transaction, it can follow the micro-finance
process or policies and what are affected by program in the communities.

1.17 Training for staff and clients.


This organization provides 1-3 days trainings for clients, farmers on seasonal, off-seasonal vegetable and
trainings of crop management to members and their guardians, who are involved in the branch centre under
Micro-finance in Co-operation of various donors and FORWARD's microfinance itself and training provides
according to the member's needs, they teach whatever clients want to learn and for their community
improvement of practical practices. 19
Client and Staff Training
S.N. Branches Participants S.N. Branches Participants
1 Aurabani 33 10 Fikkal 24
2 Hatimuda 35 11 Ilam 84
3 Khanar 31 12 Biratnagar 60
4 Pakali 30 13 Gaighat 146
5 Belbari 29 14 Katari 48
6 Tetariya 38 15 Birtabazar 51
7 Laukahi 30 16 Debangunj 20
MICRO FINANCE

8 Urlabari 89 17 Others 1103


9 Chimadi 73 Total 1894

S.N. Name of Training Training Institution Period Female Male Total


1. Field motivator Training FORWARD/RMDC 2 days 19 29 48

1.18 Major activities of Micro-Finance Program:

v VDC Survey PWR/PRA. v Human resources Management.


v CGT, PGT, GRT. v Staffs training on Motivation, accountancy,
v Center Meeting. financial analysis.
v Saving collection. v Entrepreneurship training for clients.
v Loan disbursement and recovery. v Training on Agriculture and livestock
v Loan analysis and utility checkup. development and new technology production.
v Supervision/ Monitoring and Evaluation. v Inter-group study and expose visit.
v Regular Internal Audit. v Center Chief and their guardians campaign.
v Loan loss provisioning process. v Campaign on Women Empowerment.

1.19 Major activities of Micro-Finance Program:


FORWARD ANNUAL REPORT 2009

v Women are honest in the community but there v Main responsibility and sincerity of centre chief
is lack of an opportunity to show their honesty to makes disciplinary and management of their
and commitment. centre operation.
v Programs have to sustain with co-ordination v Successful of the meetings, when it makes
with the local governments, related stakeholders necessary for all groups to timely repayment
of the community people. and compulsory participations of all group
v Honesty, commitment and relationship among members.
the executive committee, staffs and clients with v Effective PGT conducting is most important for
affordable supporting of groups. the base of centers/units and it makes strengthen
v Program launches parallels on socio-economic their centers/units.
development and it makes sustainable and v An impact study is the most important thing of
strengthen of the organizational. significant measurement with indicators for
v Most important things of that poor people are program operation and it evaluates proper
getting easier loan without any fixed collateral. goal and objectives to achievement.
v Regular supervision and monitoring process is v Sustainable program makes effective
strengthening the groups in operation of their information, communication and its
credit mobilization and business operation. documentation.
20
FORWARD ANNUAL REPORT 2009

21
MICROFINANCE PHOTO FEATURES
2. Social
2. SocialDevelopment
Development Department:-
Department:-
SCOIAL DEVELOPMENT

2.1 Introduction:
Under this department conduct various programs on formal/non formal education,
awareness, health and sanitation, agriculture, against the domestic violence/girls trafficking,
right based trainings and campaign, woman leadership development trainings, workshop
and seminar, enterprises development trainings for microfinance group & clients.

2.2 Major Activities:


h Awareness creates on nutrition, health and hygiene.
h Installations of drinking water and its production program.
h Develop new technology and system of agriculture.
h Awareness campaign and capacity building for staff and clients.
h Creates system on good governance in group and centers.
h Awareness against the domestic violence in the communities.
h Campaigns for women empowerment .
h Develops the education system on creative writing and child center methodologies.
FORWARD ANNUAL REPORT 2009

22
2.3 Child centered teaching learning program:

FORWARD had been begun non formal child classes since 1998. The program was
run more effetely, when chairperson was visited to the Bangladesh to learn the system
and new technique of education with the team of UNICEF in 2000. It made interesting,
creative and effective child classes. It was prepared interesting story books, poem books,
after then it had run different pilot or sample classes in Sunsari district. The program
had affected to send their kids regular in the school. The learning system helped how
to enroll children in the government schools and increase the number of students with
positive result of education. It develops creative, innovative and accountable for their
children make them to behavior and friendly with close monitoring of teacher and

SCOIAL DEVELOPMENT
student even with their guardians. So Forward always applies the child center teaching
learning mythology class in the communities and now the system has followed by with
the class of Dinesh Bal bikash Center. And it will be going on regular as a BAL bikash
and in future it will be upgrade as a primary school.

2.4 J.F.P.R. with Capacity building:

Japanese Fund for poverty Reduction for different water user communities in the Sunsari,
Morang, Udaypur, Ilam and panchthar. It had been capacities various trainings, create
employment opportunities through micro-enterprise, social/economic empowerment
and developed agriculture system production. It had started to loan investment for poor
marginalized communities though micro finance, whose were already participated in
social awareness program. And also various types of capacity building program operated
by organization. It had business planed for those water user association's communities
to how to provide loan as per their capacity. Recently this organization revolves regularly
and ties up that community (water user committee) with microfinance and program had
recruited Community Mobilizer (CO) for the project and now they are continues employee
in Forward microfinance.

2.5 Enhancing Poverty Reduction with Poor Road Section's People:


Enhancing Poverty Reduction Impact of road project in different plans of Morang district FORWARD ANNUAL REPORT 2009
Pauwa Bhanjang- Phidim road its technical assistant -4760 Nep ADB uder the Road
Project of RNDP. Mentioned in the plan of road project Forward had implied in Urlabari
to Bardanga Road in Morang district Pauwa- phidim in Panchthar district supported by
ADB. The project had been started from 15 May 2006 and ended in august 2007,
which had been a revolving fund for poor vulnerable. Project was implied with priority
base to pro poor people. It uplifts their economic capacity building for poor communities.
Recently the project funding and coordination by forward microfinance, and it can
resolve its lending in their communities. Now who's are involved in road project for
improving their Socio-economic, employment opportunities through skill-development
trainings and agricultural production. Also in future Organization will do another project
in same nature of poverty reduction.
23
2.6 Campaign against domestic violence for Women and Children:

This organization has operated training section, which is trained for different disciplinary
of women rights, awareness campaigns reduce women slaughter. Forward has been
trained against the domestic violence with women and children, girl trafficking and
fighting for women rights. Which trainings are proved that bring to an end of women's
violence. Social development department has started to help those grassroots women
to fight against the violence, where people have poor thinking about women in the
communities. The program helps to keep up the human right and other ethnic minority
SCOIAL DEVELOPMENT

rights how able to take. Now most of the community people are able to go report in
related places such as police station, court and other different government and non
government sectors.

2.7 Commercial Agriculture Development Project (CADP):

Government of Nepal has received grant assistance from the Asian Development Bank
(ADB) towards the cost of Commercial Agriculture Development Project (CADP) and,
intends to apply portion of this grant to eligible payments under this deal. The project
is started since August 2007 and will continue until December 2012. Ministry of
Agriculture and Cooperatives (MOAC) is the Executing Agency and Department of
Agriculture (DOA) is Implementing Agency. The project is being implemented in 11
districts of the Eastern Development Region (EDR) - Siraha, Saptari, Sunsari, Morang,
Jhapa, Udayapur, Terhathum, Dhankuta, Ilam, Panchthar and Taplejung districts, among
of them Forward is being a partner NGO of Sunsari district.

The overall goal of the project is to reduce poverty by increasing; (i) employment
opportunities in rural areas, (ii) Value added of agriculture product in rural income.
The expected outcome of the project is; (1) Commercial agriculture investment and
FORWARD ANNUAL REPORT 2009

management through (a) Community based market infrastructure, and (b) Non-
infrastructure investments; (2) Inclusive development of stakeholders by (a) Developing
subsistence agriculture stakeholders and, (b) Enhancing semi-commercial agriculture
stakeholders and (c) Promoting social inclusiveness among commercial agriculture
stakeholders; (3) Market information dissemination; (4) Capacity enhancement of project
partners; and (5) Project implementation support. The Commercial Agriculture Alliance
(CAA) is the implementing agency for agriculture investment. In Component -1 and
other four components are being implemented by the DOA/CADP through Project
Management Unit (PMU), Biratnagar. Project component 2-"Inclusive development of
stakeholders" is to be implemented in partnership with Non-governmental Organizations
(NGOs). And FORWARD is selected as a working NGO of Sunsari district.
24
Objectives of CADP
The objective of this assignment is to assist the subsistence stakeholders- farmers, traders
and processors-whose are not eligible for commercial agriculture alliance (CAA)
memberships but have potential to develop such eligibility with support from the partner
NGOs, stakeholders who are producing only enough for subsistence are expected to
be able to generate additional income and takes up it in commercial activities.

Expected outcomes;
v The project inputs that the partner NGOs/FORWARD shall deliver to such stakeholders
of Sunsari district include community mobilization,

SCOIAL DEVELOPMENT
v Social inclusion activities, farmer group formation and strengthening, and monitoring
and evaluation. Implementation of activities under this component is expected to
yield the following outputs.

Formed groups of CADP:


VDCs Minority group Landless group Agrigulture Groups

Aurabani 7 -
Simariya 10 3 Monitor Group
17%
Landless Group
Tanmuna 8 2
Pakali 5 1
Baklauri 15 2
83%
Dumraha 15 4
Total 60 12

FORWARD ANNUAL REPORT 2009

25
3. Institutional
3. Institutionaldevelopment
development Department:-
Department:-
INSTITUTIONAL DEVELOPMENT

3.1 Introduction:
This department is moved by chief board members and its team of management committee and
advisors. The department conducts different kind of seminar, exposures, meetings and discussion
sharing flowers about institutional development, it develops future plans and creates destination
of organization, human resources management training, program strategy, contact, cooperation
and Co-ordination with other institutions and donors agencies, also it makes proposal for new
project and business Planning for Organization. And it operates office administration, reform and
follows of policies, procedure, process guidelines of institution and its supervision, monitoring
/evaluations system.

3.2 Major Activities of institutional department:


h Develops member and expansions its areas,
h Develops administrative Institutional working process,
h Develops institutional assets,
h Capacity buildings, training exposes, HR management,
h Reviews board meetings (trinity, half yearly and yearly),
h Planning, budgeting, auditing and evaluation annually,
h Reviews and refreshments of policies and procedures.
h Regular Annual General Meeting,
FORWARD ANNUAL REPORT 2009

26
3.3 Develop Member Expansion:

To keeps up date of members of the organization, it keeps on track of all old members,
their easy process of renewed and expanses of new membership and trying to find out
who's are active and passive. Every single person can be a FORWARD member, when
he/she works as an active member at least two years and he /she pays NRs. 60 as on
membership fees. After that she/he works positively for organization and one board
member can be recommend them for membership, when they will eligible for existing
member. Similarly process being an active member and those members can be fighting
for executive board committees' member with their presence of the election process. In
recently FORWARD have 9 Executive members and 157 general members which of
them are (Female-105 and male-52).

INSTITUTIONAL DEVELOPMENT
3.4 Administrative Institutional working process:

This working process is checking the administrative working process and system are in
right or wrong position. How it manages its important of board and other action minutes,
latter of management, filing and quotation, staff recruitment, responsible of printing
stocks, human resource management, Supervision monitoring, accountable. This situation
of concerning rules is as guidline, it is followed by all branches and their responsibility.
This year four review workshops (meetings) had been conducted in presence of central
board members and all branch managers. Similarly the organization conducts four full
phase meeting of board committees and eighteen emergency meetings of working board
and thirteen meetings of branch manager, which have been attended whole fiscal year
of 2065/066 instead of quarterly reviews on different purposes of the meetings are
briefly described and reviewed with previous program achievement and further strategy
of operational works and how it manage outreach of clients, staff recruitment, mobilization
various program and projects of the Organization.

3.5 Capacity building program:


This Capacity building program makes an effective mobilization of the Organization. FORWARD ANNUAL REPORT 2009
Lack of organizational management skills, program mobilization including office
management, financial record keeping and working activities reporting Supervision &
monitoring is the general problems of the organizational team. FORWARD is committed
to up dated on its skills, formulating various strategy, working committees strategies are;
Development of microfinance training packages. Department develops MIS system on
microfinance and it develops information collation about human resources management
package. Membership directory develops for impact analysis of program implementation.
Recently it is helping by different donors and itself Forward as above mentioned programs
under this program. And also capacity development trainings, promotion of staffs and
other working committees with seminar exposures observation that kind of programs
are done by the institutional department of the organization.
27
3.6 Staffs training and exposures:

Name of Training conduct Time Participation


S.N. Period
training Exposures Institutions Female Male Total
1. TOT Training RMDC 4 days - 1 1
2. Internal Audit training RMDC 4 days - 1 1
3. Quality Training RMDC 2 days - 1 1
4. Microfinance exposures Sahara Nepal 1 days - 1 1
5. Bio-Gas Training BSP Nepal 4 days - 1 1
6. Financial Arrears CMF/FORWARD 4 days 1 1
7. Credit & Risk mgmt RMDC 3 days - 1 1
8. Livestock security Orientation Deposit and loan corporation 1 days - 1 1
INSTITUTIONAL DEVELOPMENT

9. Bio-Gas Workshop BSP Nepal 1 days 8 31 39


10. Bangladesh Exposure RMDC /FORWARD 7 days 2 - 2
11. Management on Microfinance EDA India /FORWARD 5 days 1 - -
12. Regional Microfinance Summit Globle MF Sumit /FORWARD 3 days 1 - -
13. Austrailia visit on Indigenious issues NIFIN/FORWARD 3 days 1 - -
14. Microfinance Management development Program EDA India /FORWARD 4 days 1 - 1
Total 14 39 50

Training exposures of Staffs up to Mid July2009:

Female
Male
FORWARD ANNUAL REPORT 2009

28
4. Annual
4. Annual General
General Meeting Meeting

4.1 Annual General Meeting Start

ANNUAL GENERAL MEETING


The Fourteenth Annual General Meeting was persons, media and others. In mean time
organized in B.S. 7 Ashwin 2066 (23 Sep chairperson starts AGM with her valuable
2009) at the FORWARD hall Duhabi Sunsari remarks about the organization has been
district. The Annual general meeting was running 14 nth anniversaries with sustainable
attended more than 150 participants and more viable stand up to compete with
representing general members Chairperson another rebels. And now FORWARD knows
Bhagbati Chaudhary, Vice chairperson Hira how as a reliable dedicate service provider
thandar, Secretary Lalita Chaudhary, Treasurer of microfinance institution in the Nepal. At
Raj Kumari Tabdar, Executive Members Dev the same time all participants, members,
Kumary Shrestha, Sabita Dahal, Kalabati staffs, all Executive Board Committees and
Chaudhary, Advisor committee Harinarayan honorable CA guests has been welcomed by
Chaudhary, Syamchand Chaudhary, Secretary Mrs. Lalita Chaudhary. After then
Stayanarayan Chaudhary, Kamal shingh staff of FORWARD Mr. Ashish Chaudhary
Rajbanshi, life members Rajendra Chaudhary, read a poem about late Mr. Dinesh Chaudhary
Kamala Chaudhary and most of the branch was a father/founder and former executive
member staffs, general members and Center director of FORWARD, who was the chief
/ group chiefs, special guest, Sunsari Local leader and a good skilled teacher / facilitator
development officer (LDO) even with with a guardianship of the Organization.
Constitutional Assembly (CA) members FORWARD shall always feel gap of his
Nabodita Chaudhary, Lalbabu Pandit. The presence in the working ground of FORWARD.
organization has been its journey of fourteenth After gap of his presence it was made facing

FORWARD ANNUAL REPORT 2009


years. The various 14 nth times annual general many problems in the organization. But
meetings (AGM) had been able to gathered however it gets respite from it.
significant numbers of women representation. The whole fiscal year of 2065/066 (Mid July
The Encore of the AGM program vice 2008 to Mid July 2009) progresses briefly
chairperson Mrs. Hira thandar is announced reporting and reviewed by Secretary Mrs.
t h e AG M w h i c h w a s s t a r t e d w i t h Lalita Chaudhary about three department
rememberable event with our former executive and its activities, programs progresses of the
director Mr. Dinesh Chaudhary who was Organization, which has been mentioned in
untimely demised by road accident. The this annual progress report. And it's financial
organization always ready for face the progressed by Treasurer Mrs. Raj Kumari
challenges and achievement for poor Tabadar has presented comparatively current
vulnerable communities. She request to the and previous fiscal year up to mid July 2008
chair for the Chairperson and special guests to Mid July 2009. She was concluding remarks
CA members, other guests, institutional of the meeting we real appreciable the
29
FORWARD have good job and stand in their gupta, Abhinash Chaudhary, Sova Baral, Ashish
better service provider of Socio- economic Chaudhary, Durga thapa, Kashalal Bishwas,
development of community level and in your Lekhnath Subedi and parsuram mandal), and
presence although the situation of conflict Six of field motivators (Suruplal Chaudhary,
and unstable government political situation Janaki Chaudhary, Jitendra manjhi, Ranjana
is creates so many problems but gets good mundawari, Renuka khaling, Tarachan sardar)
achievement and stable successful of the for their good performance, achieve microfinance
organization in eastern part of Nepal. indicators loan analysis/ utilization, no baddebts,
portfolio management, full target achievement
Other speaker is spooked Mr. Laxmi k. shrestha
and meet its microfinance ratios. Similarly most
Act. Director of FORWARD, He elaborate
of the 107 Center/ Units are awarded and its
FORWARD was borned as real mean of women
chiefs are scored the 1st, 2nd, 3rd and 4rth
development, so it gets real thanks for its founders
which they meet their achievements indicators
Bhagbati Chaudhary, Dinesh Chaudhary, Lalita
and good per formance in the communities and
ANNUAL GENERAL MEETING

Chaudhary in helping hand in Co-operation of


even its branches. Awarded Center/Units are
FORWARD program implementation process.
scored their position in 1st more than 25%, 2nd
Such likes Mrs. Devekumari shrestha and Sabita
25%, 3rd 25% and 4th 24% in such performance
dahal both has remarkable given speech about
of timely repayment with 100 % rate, more than
the how mat the organizational goals and
90% attendance record, full centers, portfolio
strategies and it has to be need of collaboration
management.
all staffs, clients and management without any
of them, it couldn't achieve with successfully. In last the President briefly reviewed with her
Similarly is spoken by Mr. Satya narayan concluding remarks on achievements success
Chaudhary mentioned Bhagbati, Mr. Dinesh and problems which had to really face in working
Chaudhary and Mrs. Jayanti Rai's and all helping field. It's the really big big challenges for us all
hand including with us collative effort upgrade of FORWARD team. All of attendee in the
the Organization enlistments in this position. annual general meeting, it would like thanks of
During the AGM another speaker CA members all office bearers, executive committee, ex-
Mrs.Nabodita Chaudhary and Mr. Lalababu executives, advisory team, management team,
pandit also elaborate their views about supporting life/Honorary Members and all active members,
management and effort of all staff team able client, staffs, well-wishers, donors agencies,
succeed the program. Similarly LDO person extending cooperation with NRB, RMDC to
remarks the Organizational achievements, how ensure the success of the Organizational program
it could possible to reach such a way of this in annually, which progress achievements are
Organization. It's the really for big challenge reporting in this annual general meeting with in
FORWARD ANNUAL REPORT 2009

even in Government sector although you are such guests of honorable CA member's presence.
the non government sector. So I would like to
thanks you all the team of could achieve succeed. The 2nd session of Annual General Meeting
Others from staff and center chiefs conclude was started by chairperson and it opens the
general members group 3-4 ladies spooked forum on open discussion and come to the
about positive and negative impact and effects points in further planning and strategic framework
about program implementation in the of the Organization. The Organization requires
communities and its working process. more and more vulnerable, marginalize poor
people, it needs really for support of them in
This year most of the Staffs and Center/Unit part of social-economic development. Such a
chiefs are awarded by the Organization. Such significant support for achievement, It directs
awards took the six head office staffs (Mahesh the people's aspirations on poverty free,
Chaudhary, Bachan Chaudhary, Rudrahari enterprises development and how to keeps up
khanal, Dhirendra manjhi, Mahesh Urawn, Anita their rights in fair manner.
Urawn) and eight branch managers (Dipendra
30
Awarded Staffs Awarded Center/Units

st Center
Female nd Center
25% 24.25% 25.25%
Male rd Center
75%
th Center
25.25% 25.25%

ANNUAL GENERAL MEETING


4.2 Future strategies of 2065/066 are given bellows:
h Women empowering with inclusive participation.
h Capacity building for whole FORWARD team (Client, staffs and Executive & advisory
Committees)
h Organizational outreach in member's expansion more than 65000 members.
h Area will be expansion in more additional 10 Train districts even within touchable hill
districts of Forwards' working areas.
h Staffs increase more than 200 persons and their requirement process is more inclusive
and likeminded ethnicity professional groups.
h Program planning, implementation and supervision monitoring process are more
technical and effective under the organization policy, procedure and guidelines.
h Microfinance program becomes a free of bad debts and no delinquency.
h Organization will have developed a master strategy plan for further five years planning
and it has supported to operational business plan.
h Organization will be developing proper documentation, effective communication and
FORWARD ANNUAL REPORT 2009
good MIS system.
h Action research and Impact study will be doing on changing pattern of clients with the
program mobilization in the communities.

At last FORWARD will be committing to independent project and programs and its
issues related objectives of one more thematic areas, which contribute to overall purpose
of the Organization. The FORWARD will be adapting to enable on cross cutting issues
with incorporation integrating management as per organizational requirement. During
the report preparation further annual reports in future to make better reform and more
effective organizing in compare of previous reports. I keep expecting to get good
suggestions and comments from all members, staffs and other related donors, stakeholders
NGOs INGOs and other funding agencies.
31
5. Microfinance is a Major Instrument of Poverty Reduction
... Bhagbati Chaudhary

Context: aimed at broadening the range of services beyond


credit for example; deposit, insurance, money transfer
Microfinance proves its services is a major instrument and payment services.
for poverty reduction, in the world of international
aid, microfinance is a rock star, which collects small Rational of Microfinance:
scale capitals in the communities, it has done micro
level business trades, and micro lending even it About poverty reduction or proverty through out from
keeps small level social security funds (micro the societies, we can think about our country
insurances) for the poor vulnerable. Microfinance population and which they are absolute below the
is succeeding in the world wide as microfinance is poverty line, the country has to provide their
a major tool of poverty throughout from poor fundamental basic rights like; one couple of clothes,
communities as well as in socio-economic sector. safety home for residence, pure drinking water, food
MICROFINANCE ARTICLE

We can say the microfinance is somehow home for daily eating, creates an enabling environment
based service providing program as on choice of for school going children. During the microfinance
local communities for poor peoples. It provides program, these basic rights are probably to achieve
small size of loans for small businesses, small success though the
industries, livestock's, microfinance providers.
agricultures, service trade If we see when the microfinance was Initiate in Nepal It provides various
and other area of socio- opportunities for
economic service oriented. even in another countries. Microfinance in Nepal from u n e m p l o y m e n t o f
Which can uplift the poor BS 2020 and cooperative bank from B.S.2024, younger of the poor
marginalize communities, agriculture development bank BS 2032, Skill m a r g i n a l i z e
b e s i d e s t h e p r o g r a m development agriculture industries 1974-1981, communities. It creates
implementation; its outcome Production of Credit Rural Women (PCRW) BS 2039, different diversity of self-
is reducing the domestic Rural Self Reliance Fund (RSRF) of NRB in BS 2047, e m p l o y m e n t ,
violence and negative accountable, laborious
t r a d i t i o n l i k e ; c h i l d Bisheswor with poverty BS 2048, Cooperative Act BS and makes it to pick up
m a r r i a g e s , d o w r y , 2048, Garamin Model followers Gramin Banks-BS the values of time and
discrimination between child 2049, Microcredit Project for Women (MCPW) BS money. Microfinance
of boys and girls, cutoff the 2050, Microfinance Banks BS 2054, and license holding improves the society on
unwanted dues, expenses Micro intermediary Act for NGOs BS 2055 Microfinance socio-economic status,
from the societies. it brings significant
Microfinance also enhances policy BS 2056, Rural Microfinance Development Center outcomes mild creative
the women leadership and (RMDC) BS 2056, And other various types of formal societies and beside it
uplifts their capacity and non formal Projects NGOs, INGOs, Cooperatives are country's basic needs fill
confidence buildup all involve as microcredit service providers in all around up by the microfinance
w o m e n w h o s e a r e the country. services, in really meant
concerning in the stands as poverty free
microfinance group centers.
FORWARD ANNUAL REPORT 2009

that the society


Microfinance also creates various types of empowering though microfinance is a major tool of
employment, when it keeps up for betterment of the poverty reduction.
poor societies, throughout the economical problems
and it manages the capital of small level business Such as microfinance is all around the world with
trades. And it will sure to positive change on the poor vulnerable people, the industries are succeeding
communities as poverty less society. in the worldwide like; Micro lending institutions have
sprung up all over the developing world, from India
In this context, we are seeing the emergence of to Bolivia to Serbia; by one estimate, over 150 million
commercial banks and apex organizations linking people worldwide have taken out a microloan. We
to less formal institutions, such as microfinance can see to Grameen Bank and its founder,
institutions, saving credit cooperatives and in case Mohammad Yunus, was awarded the Nobel Peace
of some NGOs to extend the reach of their services, Prize in 2006, and Yunus is fond of saying that,
while affording the informal institutions better access thanks to microcredit, his grandchildren will have to
to need capitals. Other linkages are between financial go to museums to know what poverty looks like.
institutions and non financial organizations which The practice of giving very poor people very small
have a wide distribution system such as retail outlets loans to start very small businesses has been hailed
and postal services, linkages are also in some cases as one of the very few unambiguous success stories
32
in the long, frustrating fight against Third World population of 41.76 percent people were in below
poverty. The pioneer of the practice, Bangladesh's the poverty line, which of them rural grassroots
Grameen Bank, has disbursed more than $8 billion poverty 43.27 percent and in the urban 21.5 percent
in unsecured loans, usually in amounts under $100, were below the poverty line. Regarding the poverty
to people traditional banks are ignoring. Along with another report shows wages / income of Nepalese
a 98 percent repayment rate. Grameen has accrued population 30.85 percents were below the poverty
an inspiring collection of stories about its line. But recently now World Bank study report is
overwhelmingly female borrowers, whose microloans defined that more than 65 percent people below
allowed them to start up embroidery or pottery the poverty line of Nepalese people.
business, or a snack cart or a stand selling cell
phone cards, and through such petty entrepreneurship Features of Microfinance:
lift themselves out of poverty. "Small Loans, Big
Gains," 2002 Globe editorial on microfinance was Beside the microfinance program, it collects small
titled. savings local deposits, it provides small size of loans,
which breakthrough unwanted expenses from the
communities, and it makes all people have to

MICROFINANCE ARTICLE
"There might be little pockets here and there of
people who are made better off, but the average financial stand up with their self confidence. It covers
effect is weak, if not nonexistent. Underlying all of small size of social security's fund, in terms death of
this is a debate over the role and the importance of clients/ lost of client life; disaster damages, fires of
the micro-entrepreneur. Part of the appeal of their houses, maternity health of baby born which
microcredit lies in its suggestion that the world's compensation provides their families. More than 90
slums are populated not by helpless victims of global percent members are women in the groups loan
forces, The new research underlines the fact that, lending process common and easy way with group
inspiring as that story may be, misrepresents how guarantees without fixed collateral. And its recovery
both individuals and nations percentage more than 98%,
climb the economic ladder. Financial service providers up to Mid July 2009 it has owned beauty's to
Developing nations already mobilize as well as micro
have far more petty 1. Commercial Banks - 26 savings, micro loan, micro
entrepreneurs than wealthy 2. Development Banks - 63 business invest, small
countries do mostly because 3. Financial Companies enterprises, small security's
- 77 covers after regular mobilize
people there have little choice 4. Cooperative license from NRB - 16
but to start their own business microfinance. It provides its
Truly addressing the poverty 5. NGOs FI license from NRB - 45 services as successfully with
of the developing world may 6. Insurance companies - 25 many success stories of clients.
require that we think macro 7. Microfinance banks - 13 Microfinance clients keep and
rather than micro. fulfill their needs; as they built
Microcredit's defenders say the new findings, while small good looking houses,
suggestive, aren't enough to prove anything. Some they purchase small piece of land for small farming
argue that they actually show that microcredit works, (one katha, two katha / one ropany, two ropany)
in a qualified way, providing a cheaper alternative and gradually they increase their income levels.
to the village moneylender and his ruinous interest
rates. Microfinance more dramatic effects, they Microfinance itself keeps market and other linkages
today we can see he/ she (client) wears one pairs
FORWARD ANNUAL REPORT 2009
suggest, may take longer to appear of the windows
researchers looked at, many various types of of clothes but tomorrow he /she (client) wears two
worldwide networks/agencies are working in the / three pairs of clothes, today his/her business in
world even in the Nepal, likes Microfinance summit small level, but now his /her business absolutely
of National / microfinance bank association, MIFAN increases in big shops / retailers and business trades.
and RMDC etc. The microfinance scenarios prove that poverty
reduction through microfinance mobilization is a
When we study about microfinance and about its good strong rock star tool for poverty throughout.
poverty reduction we can see many succession It creates local jobs and also solves the problem of
indicators of microfinance as like from the World unemployment, which helps to boost up our poor
Bank per person per day income level bellow than people and our societies to uplift from poverty. So
$ 1 dollar call poverty bellow the line, as other from we can sure to upgrade our socio-economic
National planning commission per person annual condition and country's microeconomic.
income NRs. 4404 in below the poverty line, similar
this from Nepal Rastra Bank (NRB) defines per year Achievement of Microfinance:
per person income values NRs. 5500 call below the
poverty line. Various argues about poverty In spite of the considerable innovations in
measurement we saw in 1995/96 report from total microfinance in recent years, millions of people in
33
the world still do not have access to basic financial Indigenous, Dalit, minorities and women. But it has
services. The huge majority of those without access been gradually cut off all kind of discrimination like;
reside in developing countries, particularly rural gender and others violence's have to cut off by
areas where it is more difficulties and high operational microfinance program from tradition communities
cost to extend these services. Although progress has and it has placed equal participation in inclusion
been made on how to supply rural financial services base on all segments of the country. Although
in a sustainable ways, no body agreed of its best microfinance program for poor vulnerable, it has
practice is available in designing institutions and many problems within reach to the poor of the
products to meet the demand of this more challenges poorest. However the country come out from the
cliental. Many service providers are looking at ways conflict even it's the phase off revolt because such
to extend the frontier of sustainable microfinance parts of country like instable political transition is
by overcoming cost barriers, mitigating risk, and situation, the country process on secular freedom
exploring technology and methodological religious republican federalism democracy. Obviously
innovations. They actively support experiments, we can see various problems with the poor people,
innovations and research in rural finance. Indigenous, Dalit, Minorities, Madheshis and other
unrepresented minorities, conflict groups. It is genuine
Being microfinance service providers are succeeding the people are revolting with road closed, political
MICROFINANCE ARTICLE

in their working fields. Capable good leaders, groupies and other violence's, but it effects directly
Organizational management, capacitate laborious to the socio financial achievement, even all over
staffs, Strategic Vision, working procedure, marketing the country and it effects progress road map of
policies, Purposing Business plans keep good microfinance. Microfinance proves it's achievement
achievement to success. Microfinance removes the in the poor society although it works with poor to
poverty from the society; it gives satisfaction to all poorest with small size of loan, deposits and small
service providers, service holders of poor communities social security fund even working in grassroots. So
even its working staffs. We can say confidently we the major demand of all microfinance institutions
will do something for ourselves and for our requirement has to keep up in the constitution
communities even for the country. We have capacity making process. It shall be guarantee for employment
to do something for poor vulnerable poor people to local poor rural women and small entrepreneurs
through microfinance. All stakeholder and direct and microfinance also incorporate the concern part
service providers confidently to say small percent of of planning commission or government planning
invest effort to us to uplift the poor society and small as Poverty Reduction Fund (PAF), Government self
contribution to boost up the poor families and reliance fund of NRB and other such types of
absolutely it promotes human resources, creates community based microfinance or microeconomic
local employments, it proves capacity promotion projects, financial service providers, even with its
deserve to upgrade microeconomic process. big dills of the country. The country has to search
about the poverty service providers and major
Conclusion: instruments of the poverty reduction and its programs.
Which microfinance has to prove that achievement
Microfinance is cutting off the discrimination from stand behind with the poor vulnerable communities?
the communities, it promotes bring up in to the So it has to need big strategically market and business
mainstream of all the poor vulnerable, whose are plans, which we can sure to say the country will
facing many problems in the country, basically we dynamic grownup within peace sustainable
call poor people; as financial weaknesses, development approach.
FORWARD ANNUAL REPORT 2009

34
FORWARD ANNUAL REPORT 2009

35
INSTITUTIONAL DPRT. AND SOCIAL PHOTO FEATURES
Institutional Dprt. and Social Photo Features
6. Voices of Community
Bhima Rajbanshi from Forward Bahuni Branch Morang, says I was so socked in
that time period, when I was not being a member of Forward, because no one
came out front to financial help us. But we could get Forward as a helping hand
and first time I took loan amount of NRs. 10,000 after some times she had got a
lot profit from her small tea shop. She added 2nd loan NRs. 15,000 to expand
her tea shop and other cosmetic materials. After then she were making more profit
from her two businesses. Recently she has purchased two katha of land her children
Bhima Rajbanshi are going to school, she has a good living house and she and her family enjoy in
happy life of their community.
Manju Devi from Hatimuda Branch of morang district, says, I was financial sacrificing
in that time, when Forward was not come with us. So it was good for us to come in
COMMUNITY'S VOICES

right time to provide socio-economic help to our community members. First time I
took NRs. 5,000 in that time but I couldn't express and standup to my turn of loan
demand, because of my fearness. But now, I have been taking several terms of loans
NRs. 10,000-15,000-20,000. Gradually after sometimes it becomes easier for me
and our Center/Units, recently I am also a Center chief. After loans I have earned
Manju Devi Rishidev some fixed assets 2 Katha of land and build a small living house of breaks and my
husband is also working in a factory, he is much happy to take loan, because of
that our big daughter has got marriage happily and another small is going to school. Her family members
are too happing to Forward's inspired them to membership. Recently they are model family in their village.
Sunita took first loan NRs. 5,000, after then she took NRs. 8,000 and 15,000 for
pig ring and small retail shop, after sometimes she has earned good profit of her
retail business and pig ring. Few years later she has purchased 6 Katha of land
recently she has pigs, cattle (cow, buffalo & goat), she's also purchased 1 Tola of
gold and 20 Tola silver. Sunita says, I got a lucky man as my husband, because
he is too helpful done our works together. Now she and her family members are
glad happier with Forward, because it could provide loans easy and creates job in
Sunita Chaudhary time and her children are going to school and collage.

Bhagwati says, I have been a member of Forward since 2002, when Forward began
microfinance program. First she took NRs. 10,000 for vegetable shop, after few
weeks she got good profit, however she sold her all vegetables, but she lost her
business when sometimes she left to sale her vegetables which were damaged.
FORWARD ANNUAL REPORT 2009

After sometimes she's changed her business to cereal retail business which has
been perfect no doubt to damage, it has given more profit than previous business.
Her business runs always in local daily, weekly hatbazar. After sometimes, she has
Bhagwati Chaudhary purchased 1 Katha of land, T.V., Pigs, 1 cow and recently she and her family is
gladding with school going children, and counting a model family in her village.
Uma is a client of Bhahuni Branch Morang. She was facing struggle of poverty,
she had many problems, when she didn't get any helping hands her family members
have only option for labor works, in that time Forward was supported to provide
loan she says. She was started a small tea shop when she took first loan of NRs.
10,000, after sometimes she got good profit from that business, and add another
term of loan NRs. 15,000 and made big tea shop, after then she got a lot of profit
from tea shop, now her most of the family members are involving in that tea shop.
Uma karki They are enjoying happy life with good profit from their business and they thank to
Forward, which were provided loan in critical period. Recently now she has built a
36 good-looking breaks house and all her children going to school.
7.Organizational
7. OrganizationalChart Chart

General Assembly

Executive Committee
Life member Advisor Committee

ORGANIZATIONAL CHART
Executive Chief
Honarary member

Deputy Executive

Micro Finance Department Social development Institutional Development


MF Chief Department Department
S.D. Chief I.D. Chief

Area Office Education program Administration


(A.I.) (E.P.C.) (A.O.)

Branch Office Women Empowerment Human Resource Development


(B.M.) (W.E.C.) (H.R.D.O.)

FORWARD ANNUAL REPORT 2009


Center Enterprise Development Research & Publication
(C.C.) (E.D.C.) (R.P.O.)

Group Poverty Reduction Monitoring & Evaluation


(G.C.) (P.R.C.) (M.E.O.)

Community Member Agriculture Development Internal Audit Unit


(C.M.) (A.D.C.) (I.A.O.)
37
8. MAJOR WORKING EXPERIENCE OF THE FORWARD UP TO FOURTEEN YEARS:

S.N. Project Title Start Date Complete Date Coordinated with agencies

1. Enhancing Access to Financial Service Project (EAFSP) April 2010 July 2012 Complete Date
2. Commercial Agriculture Development Project (CADP) Au. 2007 Dec 2012 July 2012
3. Optimizing Productivity of Poor Water User Association March 2005 May 2008 Dec 2012
4. Optimizing Productivity of Poor Water User Association March 2005 May 2008 May 2008
5. Micro Enterprises Development Training for Microfinance March 2005 May 2008 May 2008
Clients
6. Optimizing Productivity of Poor Water User Association March 2006 May 2008 May 2008
7. Optimizing Productivity of Poor Water User Association Nov 2006 May 2008 May 2008
8. Enhancing Poverty Reduction Impact of Road Project March 2006 July 2007 May 2008
WORKING EXPERIENCE

9. Micro Enterprises Development Training for Clients March 2005 Dec 2007 July 2007
10. Ceter Chief, Trainee staffs, Staffs, Executive Board 2003 2006 Dec 2007
Exposer Visit Program
12. Micro credit & Microfinance Feb 1997 On Going NRB/RMDC/ Fin. Inst.
13. Microfinance loan agreement April 2002 Ongoing RMDC, other financial Insts.
14. School Management committee & Teacher Training on Jan 2001 2007 Plan Nepal/ DEOs of Sunsari
Child Center Methodology trainings & Morang
15. Gender Training package of Plan Families Feb 2002 Dec 2002 Plan Nepal
16. Agricuture Development on Vegetable farming for poor Aug 2002 Dec 2004 NPLAP /DFID
Families of Musahar Community
17. Community Base Sanitation Program in Full Package March 2001 Dec 2004 UNICEF/ RODWSD
in Sunsari District as a Lead NGO
18. Diagnostic Learning on Good Governance and Action Feb 2002 Jun 2002 DFID/ Mott MacDonald, SMIP/
Plan Research (DLAP) MDMS
19. NGO/CBOs Capacity Building Project Partners Jun 2001 Dec 2003 NPLAP/DFID/Plan Nepal
20. Parenting Orientation Program (PO) Jan 2000 2007 annually UNICEF & Plan Nepal
21. Literacy Class (Parenting Orientation, Briging Course, 2000 Sep 2006 annually Plan Nepal
Child & Adult Classes)
22. Child Centered Teaching Learning Out of School Program 2001 Aug 2007 annually UNICEF
(CCOSP)
23. Child Health Promotion Program on (CDD and ARI ) Feb 2000 Dec2002 UNICEF / NGOCC
FORWARD ANNUAL REPORT 2009

24. Package Training Program on Nutrition Jan 1997 Dec 1997 DPCPUNICEF/ DDCSunsari
25. Micro Credit Improvement & Settlement of Village Jan1998 2001 Dec PACT Nepal /USID
Banking
26. Legal Literacy Class Program Jan1998 2001 Dec Asia Foundation /PACT
28. Credit for Loan Fund from NRB March 1997 May 2000 NRB
29. Adult Literacy Classes Aug 1996 March 1998 DEO Moarang
30. Community Based Health, Sanitation & Driking water March 1997 July 2001 UNICEF
31. Community Based Motivation Training Packages March 1997 July 2000 UNICEF/ WDSS
32. Women Empowerment Program Aug 1996 April 1997 Asia Foundation /PACT
33. Education (ALC/CLC) May 1996 Feb 1997 Plan Nepal
34. Education (OSP) March 1995 Feb 1996 UNICEF
35. Education Basic Literacy of Women Sep 1995 Feb 1996 PACT Nepal
36 Fund Raising Program Film Charity show Program May 1995 May 1995 FORWARD/ Cinema house
38
FORWARD ANNUAL REPORT 2009

39
YEARLY FINANCIAL TRANSACTION
9. FORWARD'S FOURTEEN YEARS FINANCIAL JOURNEY
40
FORWARD ANNUAL REPORT 2009 FINANCIAL SUMMARIES

10.
10. Financial
Financial
SummariesSummaries
Forum for Rural Women Ardency Development (FORWARD)
Duhabi 3 Sunsari
BALANCE SHEET ( CONSOLIDATED )
AS AT 31.3.2066 (15th July 2009)

S.N. Capital and Liabilities Schedule This Year Previous Year


Mid July 2009 Mid July 2008
1 Share Capital -
2 Reserves and Funds 1 64595769 37,076,617
3 Debenture and bonds

FINANCIAL SUMMARIES
4 Borrowings 2 198401313 180,913,132
5 Deposit Liabilities 3 117412713 73,314,137
6 Bills Payable
7 Proposed and Payable Divident
8 Income Tax Liabilities
9 Other Liabilities 4 7338001 5,065,292
Total Liabilities 387747795 296,369,177

S.N. This Year Previous Year


Assets Schedule Mid July 2009 Mid July 2008
1 Cash Balance 5 65111 13,054
2 Nepal Rastra Bank Balance
3 Bank/Financial Institution Balance (Current) 6 3855051 2,469,438
4 Money at Call and Shirt Notice (Saving & Call) 7 49576161 26,918,714
5 Investments (FD, Share debenture) 8 26125000 26,125,000
6 Loans and Advances 9 302419946 235,851,106
(Loan loss Reserve) 9.1 (7302336) (5,178,791)
7 Fixed Assets 10 7462483 5,740,315

FORWARD ANNUAL REPORT 2009


8 Non Banking Assets
9 Other Assets 11 5546378 4,430,343
Total Assets 387747795 296,369,177
Date: 2066/06/06 As per our separate report on even date for
Place: Biratnagar A. Bansal and Associates

.............................. ............................... ..................................... ........................................


Rajkumari Tabdar Lalita Chaudhary Bhagabati Chaudhary Aswani Bansal, FCA
Treasurer Secretary Chairperson Chartered Accountants

41
Forum for Rural Women Ardency Development (FORWARD)
Duhabi 3 Sunsari
Income & Expenditure Account (Consolidated)
FY Mid July 2008 upto Mid July 2009
This Year Previous Year
S.N. Particulars Schedule Mid July 2009 Mid July 2008
1 Interest Income 13 66,767,064 44,371,784
2 Interest Expenses 14 18,075,398 11,684,264
a) Net Interest Income (1-2) 48,691,666 32,687,520
3 Commission and Discount - -
4 Other Operational Income 15 2,649,016 3,683,611
5 Foreign Exchange Income
FINANCIAL SUMMARIES

b) Total Operational Income (a+3+4+5) 51,340,682 36,371,131


6 Personnel Expense 16 16,516,163 10,750,376
7 Other Operational Expense 17 7,188,558 5,383,523
8 Foreign Exchange Deficit
c) Operational Surplus before Loan Loss Provision 27,635,961 20,237,232
9 (b-6-7-8) 18 2,184,402 2,180,031
Loan Loss Provision 25,451,559 18,057,201
10 d) Operational Surplus (c-9) 19 - 20 - -
11 Non operational Surplus/Deficit 21 4,818,751
Reversed from Specific Fund
12 Reversed from Loan Loss Provision 30,270,310 18,057,201
e) Surplus from Regular Operation (d+10+11)
13 Extraordinary Operation Gain/Deficit
F) Surplus from Regular Operation (e+12) 30,270,310 18,057,201
14 Provision for Bonus
15 Income Tax Provision -
Net Surplus/Deficit (C/F) 30,270,310 18,057,201

S.N. Particulars Schedule This Year Previous Year


Mid July 2009 Mid July 2008
1 Net Surplus for the year B/F - 30,270,310 18,057,201
2 Net Surplus carried from last year - -
FORWARD ANNUAL REPORT 2009

Total Available Surplus - 30,270,310 18,057,201


3 Appropriation
Growth Fund - 3,343,924 467,939
Welfare Fund - 3,024,199
Health Insurance Fund
………………..
Total Appropriation - 6,368,123
4 Balance Transferred to General Reserve Fund - 23,902,187 17,589,262

Date: 2066/06/06 As per our separate report on even date for


Place: Biratnagar A. Bansal and Associates

.............................. ............................... ..................................... ........................................


Rajkumari Tabdar Lalita Chaudhary Bhagabati Chaudhary Aswani Bansal, FCA
42 Treasurer Secretary Chairperson Chartered Accountants
Forum for Rural Women Ardency Development (FORWARD)
Duhabi 3 Sunsari
Cash Flow Statement (Consolidated)
For the year ended on 31.3.2066(Mid July 2009)
Previous Year This Year
Mid July 2008 Particulars Mid July 2009
(2,645,854) A Cash Flow from Operation Activities (a+b+c) 1,153,104
48,055,395 1 Cash Inflow (1.1+………+1.5) 69,416,080
44,371,784 1.1 Interest Income 66,767,064
- 1.2 Commission and Discount Income -
1.3 Foreign Exchange Transaction Income
1.4 Income from Loan Write-off
3,683,611 1.5 Other Income 2,649,016

FINANCIAL SUMMARIES
30,466,133 2 Cash Outflow (2.1+…….+2.5) 41,780,119
11,684,264 2.1 Interest Expenses 18,075,398
10,750,376 2.2 Personnel Expenses 16,516,163
5,851,462 2.3 Office Operational Expenses 7,188,558
2.4 Income Tax Payment
2,180,031 2.5 Other expense -
17,589,262 a Cash flow before working Capital Activities (1-2) 27,635,961
(115,839,401) b Decrease/(Increase) in Current Assets (90,342,323)
(17,567,516) Decrease/(Increase) in Money at Call and Short Notice (22,657,448)
(1,125,000) Decrease/(Increase) in Short Term Investment -
(93,573,346) Decrease/(Increase) in Loan and Bills Purchase (66,568,840)
(3,573,539) Decrease/(Increase) in Other Assets (1,116,035)
95,604,285 c Decrease/(Increase) in Current Liabilities 63,859,466
36,596,131 (Decrease)/Increase in Deposits 44,098,576
(Decrease)/Increase in Certificate of Diposit
56,140,482 (Decrease)/Increase in Short Term Borrowings 17,488,181
2,867,672 (Decrease)/Increase in Other Liabilities 2,272,709
(628,544) B. Cash flow from Investing Activities (1+2+3+4) (1,722,169)
1 Decrease/(Increase) in Term Investment
(628,544) 2 Decrease/(Increase) in Fixed Assets (1,722,169)
3 Interest Income from Long Term Investment
4 Dividend Income

FORWARD ANNUAL REPORT 2009


4,143,554 C. Cash Flow from Financing Activities 2,006,734
1 Increase/( Decrease) in long Term Borrowings (Bond, Debenture Etc)
2 Increase/(Decrease) In Share Capital
4,143,554 3 Increase/(Decrease) in Long Other Liabilities (1,610,230)
4 Increase/(Decrease) in Other Reserves 3,616,964
D Gain/Loss from Foreign Exchange Difference with Cash Balance and Deposit with Banks
869,156 E Cash Flow from Total Activities of the Year (A+B+C+D) 1,437,670
1,613,336 F Opening Cash and Bank Balance (Current A/C +cash in hand) 2,482,492
2,482,492 G Closing Cash and Bank Balance (E+F) 3,920,162

.............................. ............................... ..................................... ........................................


Rajkumari Tabdar Lalita Chaudhary Bhagabati Chaudhary Aswani Bansal, FCA
Treasurer Secretary Chairperson Chartered Accountants 43
44
FORWARD ANNUAL REPORT 2009 MICROFINANCE SUMMARIES
FORWARD ANNUAL REPORT 2009

45
MICROFINANCE SUMMARIES
46
FORWARD ANNUAL REPORT 2009 MICROFINANCE SUMMARIES
HEARTFEL
HEAR
HEARTFELT
TFELT
T CONDOLENCE

CONDOLENCE
Born : April 15, 1969 Late Dinesh Chaudhary Late : June 26, 2007

Two years ago we were deeply grieved by the suddenly demise


of our Founder /Former executive Director Late: Dinesh Chaudhary
in an ambulance accident at Mahendra highway Nawalparashi
district. He was young energetic social person; The Organization
always feels the lack of his presence and promises to apply his
creative innovations and his dream alive. We pray to the God

FORWARD ANNUAL REPORT 2009


almighty for his soul to rest in peace and do away with in the
heaven. So we express our heartfelt 2nd memorial condolence
to the family members.

Hira Thandar
Vice Chairperson

Forum for Rural women Ardency development


(FORWARD)
Duhabi Sunsari, Nepal

47
48
FORWARD ANNUAL REPORT 2009 FORWARD'S WORKING AREA