Training of Trainers

Module III: Funding Opportunities, books of records and

reporting requirements of a Producer Group (PG)
Content
1. Learning Objectives: 3

2. Training Session Planning 4

3. Bank Account Opening 5

4. Financial Needs of Producer Groups 6

5. Funding Sources for a PG 7

6. Criteria for Availing Funds 8

7. Books of Records 9

8. Reporting Requirements 10

9. Monitoring Framework for PGs 11

Annexures 14

Report title 1
Aim: The purpose of this session is to make the trainers Understand the Funding
Requirements, Record Keeping and Reporting Requirements of Producer Groups (PGs)

SESSION OUTCOMES

At the end of the session, participants will be able to understand:

◼ Documentation requirements of opening a bank account by a Producer Group

◼ Needs and types of funds required by a PG

◼ Types and formats of book of records for a PC

◼ Different reporting requirements for a PG

◼ Basic monitoring parameters for grading PGs

METHODOLOGY

◼ Lecture

◼ Class Room Presentation

◼ Group Activities

◼ Videos

MATERIALS REQUIRED

◼ Registration sheet, Training schedule, presentation on trainingobjectives and course structure

◼ Writing board and marker pens or blackboard, flip charts, chartpaper, etc.

◼ Audio Visual Module III

Report title 2
 1. Learning Objectives:
Main objective of this module is to give an overview of the funding support which can be
availed by PGs and different books of records which a producer group is required to maintain.
Reporting requirements of a producer group will also be explained in this module.
• To develop a clear understanding on the documentational requirements for opening a
bank account by a PG
• To develop an understanding of needs and types of funds required by a PG
• To understand different sources of funding for a PG.
• To develop an understanding on types of records and documents to be maintained by
the PG on its regular activities.
• To understand the basic reporting requirements for a PG
• To have an understanding on the monitoring parameters for grading PGs

Report title 3
 2. Training Session
Planning
Duration Methodology Remarks
(minutes)
Review of • Welcome address
previous • Revision of previous module
session 10 • Presentation • Briefing on today’s training topics
• Lecture
About the 10 • Presentation • Section 1 to be covered
module & • Lecture • Elicit ideas and remarks from the
Learning participants during the session
Objectives
Opening of 10 • Presentation • Sections 3 & 4 to be covered
bank account • Lecture

Financial 15 • Presentation • Cover section 4.

needs of • Lecture • Divide participants into groups to
producer • Group work elicit responses on the points
groups mentioned.

Funding 15 • Presentation • Cover sections 5 & 6

sources and • Lecture • Ask participants, based on their
criteria for • Brainstorming experiences in SHG, advantages
funding Session and disadvantages of different
funding options available to
women farmers in villages
Tea break 15

• Presentation • Cover Section 7

• Lecture • Quickly walk the participants
45
through the formats (Annexure I-
Books of XV)
Records

Reporting 10 • Presentation • Cover Section 8

Requirements • Lecture

Monitoring 15 • Presentation • Cover Section 9

Framework • Lecture • Introduce the framework

Video on 20 • Video • Play the video

Module
Question & 10 • Questions • Ask questions
Answer and answers • Mention about next training
sessions on module 4

Report title 4
 3. Bank Account Opening
Prior to availing funds, a PG must have a bank account opened. The account for a Producer
Group will be opened in the name of PG. Documents required for account opening will be as
follows:
• Resolution of the Executive Committee of Producer Group for account opening.
• Bylaws of the Producer Group.
• Bank Account opening form with signatures of the signatories.
• KYC (Know Your Customer) of office bearers.
• Office Address.
• Photograph of the office bearers.
• List of the names and address of members of the Producer Group.

3.1 Cheque Signing Authority:

The Cheque signing authority would be all three office bearers. President will be the
mandatory signatory whereas any signatory amongst Secretary and the Treasurer will do.
The cheque book will be in the custody of the Treasurer.

Report title 5
 4. Financial Needs of
Producer Groups
4.1. Why is funding required for a PG?

• For arranging start-up capital (seed money), cash flows and expansions.
• For quality improvement of products, services, and business operations.
• For arranging working capital for the business.
• For technological upgradation of the business activities such as production, packaging,
storage and distribution.
• For meeting day-to-day like salaries, bills, insurance during the gestation or initial
periods of a business which are typically characterised by low revenues.

4.2. Types of funds required:

• Working capital funds: Funds required for day-to-day business activities like buying
raw materials, value addition, storage, processing, transportation, insurance and
other administrative costs.

• Fixed capital funds: Funds required for buying fixed assets and infrastructures like
aggregation centres, weighing machines, storage facilities, graders, sorters etc.
Money invested in fixed assets gives benefits to a business entity for longer period of
time, beyond one particular production cycle.

Report title 6
 5. Funding Sources for a
PG
A PG, for the purpose of establishing itself as a commercial institution and taking up viable
business activities, would require financial support. A PG can have the following sources for
availing funds.
• Sangha: A PG can contact the concerned Sangha for its financial needs and
assistance. Sangha will provide necessary guidance to the PG within its fold in this
regard.

• Financial institutions: For the purpose of arranging investments for its business
activities, a PG can also look for funding opportunities from banks and other non-
banking financial institutions.

• Own Savings: A PG can also fund its expenses and investment requirements from
its own savings. Own savings can be from the contributions made by the PG
members in the form of membership fees or other periodical subscriptions. This can
also be generated from certain percentages of distributable profit which may be
retained by the PG as reinvestment into their business activities.

Report title 7
6. Criteria for Availing
Funds
Following would be the eligibility criteria for a Producer Group to seek funding support
from WBSRLM or other potential funders.
• Selection of office bearers as per bylaws of the PG.
• Formation of thematic sub-committees.
• Cumulative attendance of the members of the Producer Group not less than 75%
in three months prior to the loan application.
• Opening of bank account
• Proper maintenance of books of records including books of accounts.
• Completion of basic training by the PG members on the business activity for
which fund has been sought.
• Preparation of an annual livelihood plan by the PG.
• Convening meetings regularly without any fail. These meetings include meetings
of governing body as well executive committee.
• Preparation of a robust business plan for the activity for which fund is requested.
• Preparation of mandatory periodical reports like the quarterly and annual
progress reports.

Report title 8
 7. Books of Records
A PG is required to maintain the following books of records for its non-financial and financial activities:

(Attached in Annexures I- XVI)

Type of Books of records

Transactions

Non- Financial • Membership register

• Minutes book of the General Body meetings
• Minutes books of the Executive Committee meetings
• Training register
• Visitors’ register
Financial • Cash Book
• General Ledger
• Cheque book register
• Stock register
• Asset register
• Machinery renting register
• Sales and purchase register
• Bank pass book
• Cheque Book
• Payment register
• Production register
• Demand and order register
• Loan register

Report title 9
 8. Reporting
Requirements
A PG is required to develop and submit the following periodic reports as per the timeline mentioned
below:

Name of the report Periodicity To whom

Business plan Before the inception of any project To the BMMU and DMMU

Training calendar Quarterly To the VO, Sangha, BMMU and

DMMU

Quarterly progress Quarterly To the VO, Sangha, BMMU and

report DMMU

Annual Progress report Annually To the BMMU and DMMU

Report title 10
 9. Monitoring Framework
for PGs
A tool for evaluating the status of the producer groups is of paramount importance for the
purpose of monitoring their progress by concerned Sanghas, BMMUs and DMMUs. This rating
is also relevant for prospective investors/financiers to PGs. Parameters on which PGs will be
rated include organizational transparency, volume and turnover of business transactions,
number of members, frequency of meetings being conducted, inventory management, systems
of financial management, overall business processes, capability of self-sustenance,
commercial viability as per business plan etc. An illustrative matrix is presented below which
can be fine-tuned in consultation with the stakeholders from time to time.

Report title 11
 Producer Group Rating sheet

Anandadhara

Name of the Group:

Village: Block: District:

Name of Bank and Branch Bank Account Number:

No of Members in the No of SC/ST/Minority Members: No of PWD members:

PG:

Name of the Name of the Secretary: Name of the Treasurer:

President:

Year of Group Primary Commodity/Activity: Outstanding Loan Amount:

Formation:

Serial Number Parameters Maximum Score PG’s Score

1 Feeling of homogeneity/Solidarity 4

2 Office bearers, executive committee and 6

thematic committees elected as per
bylaws

3. Convening of meetings on a regular 8

basis (not failed in the last three months
without any valid reason)

4. Attendance in meetings (cumulative 8

attendance not less than 75% in the last
six months)

5. Transparency of financial transactions 8

and records thereof

6. Awareness of the members on financial 8

transactions

7. Rotational leadership system flowed in 8

election of office bearers

8. Number of times the PG has been 10

defaulter in payment of loans (in the last
three years)

9. Up to date maintenance of books of 8

records

10. Bank linkages of the group till date 6

11. Quality of the production and other 6

assets of the group

12. Usage of physical assets of the group 4

13. Domain knowledge of group members 8

Report title 12
14. Training and capacity building initiatives 8
of group members

Total Score 100

Category:

Category A

More than 70 marks

Fairly good to good groups; May be loan worthy

Category B

Between 50- 70 marks

Poor to average groups; Require handholding

Category C

Less than 50 marks

Very poor groups; Require intensive capacity building

Assessed by: (Name and signature) Post:

Date of assessment Remarks:

Report title 13
Annexures
Annexure – I: Membership Register
Membership Register

Sl No Details

Photo

Name

Sex

Father/ Spouse Name

Address.

Ph Number

Primary Livelihood

Aadhar ID No

Voter ID No

Report title 14
PAN No

Bank Name

Branch Name

IFSC Code

Bank A/C No

No of Family Members

Date of Joining

Date of Exit

Signature

Report title 15
Annexure – II: Minutes Book of General Body Meetings

Minutes Book of the General Body Meetings

Meeting No: General Body Minutes Book Date:

Resolution Members Present & Resolutions Taken
No:

Report title 16
Annexure – III: Minutes Book of Executive Committee Meetings

Minutes Book of the Executive Committee Meetings

Meeting No: Executive Committee Minutes Book Date:

Serial Number Minutes of the Meeting & Members present

Report title 17
Annexure – IV: Training Register

Training Register

Training Number: Date: Place:

Training Topic:

Internal Facilitator’s Name:

Name of the Resource Persons:

Main Objective of the training

First Day/Date

Report title 18
Second Day/Date

Third Day/Date

Report title 19
 Fourth Day/Date:

Name of SHG Signature

Serial Name of Member Phone
Number Number
Day 1 Day 2 Day 3 Day 3 Day 3

Report title 20
Annexure – V: Visitors Register
Visitors Register

Serial No Name Address & Ph No Purpose In Time Out Time Suggestion Signature

Report title 21
Annexure – VI: Cash Book
Cash Book

PG Name ______________________________________________________

PG Code No : ____________________________________________________

Village : ___________________________

Panchayat : ______________________________

Block : ___________________________

Report title 22
District: : ______________________________

Cash Book

Month/ Year-

Receipt Payment

Sales
Rashid Receipt Payment Purchase
Date Page Cash Due Bank Due Date Voucher Cash Due Bank Due
Number Statement Details page No.
Number

Report title 23
Annexure – VII: General Ledger

General Ledger

Date Cashbook Page Particulars Debit Credit Balance

Number

Report title 24
Annexure – VIII: Cheque Book Register

Cheque Book Register

PG Name _____________________________________________________________

PG Code No __________________________________________________________

Village ___________________________

Panchayat ______________________________

Block __________________________

Dist. ______________________________

Report title 25
Cheque Book Register

Sl Bank Cheque Party Amt Payment Payment Purpose Treasurer's Secretary's signature
No Name No Name date signature

Report title 26
Annexure – IX: Stock Register

Stock Register

PG Name ________________________________________________________

PG Code Number ________________________________________________________

Village ___________________________

Gram Panchayat ______________________________

Block ___________________________

District ______________________________

Month/ Year:

Sl Date Material Name Ex Balance Purchase Sale Credit Balance Investigator's Comment
No (in KG) (in KG) (in KG) (in KG)
signature

Report title 27
Report title 28
Annexure – X: Asset Register

Asset Register

Details of Assets

Sl Assets Company code Area/ Date of Purchase Treasurer Secretary Remarks

No
name Shop purchase/acquiring Amt. Signature Signature
Name

Report title 29
Annexure – XI: Machinery/Equipment Renting Register
Machinery/Equipment Renting Register

Details of Machinery/Equipment

Sl Machinery/Equipm Compan cod Area Date of Purchas Annual Treasur Secretar Remark
N
ent name y e / Purchas e Amt. depreciati er y s
o
Shop on Signatur Signatur
e
Nam e e
e

Report title 30
 Name of the Machinery/Equipment

Serial Name of the member (B) Date of Renting (C) Condition of the Daily Rent of the Signature
machinery at the time of machinery
Number (A) (on receipt)
renting (D)
(E)
(F)

Date of Total days of renting Total Rental Amount Condition of the Signature Remarks
Return machinery at the time of
(H) (I) (on receipt)
returning
(G)
(K)
(J)

Report title 31
Annexure – XII: Sales & Purchase Register
Sales & Purchase Register

Sales register
(PG)
Material Cash / Outstanding Signature
Name Advance Payment Due of
Total Payment Amount (in date of Payment Treasurer
Quantity (in Rate per
Sl Party Amount (in Rs.) Rs.) receipt Receipt (after comment
Date quintals/number) quintal/unit
No Name (in Rs.) of Details receipt of
payment full
amount)

Report title 32
 Purchase Register

(PG)
Outstand
Quantity (in Rate per Amount Cash Due date Signature
Material ing
Sl Party quintals/numbe quintal/un Payable (in Payment of (after full
Date Name payment Comment
No Name r) it Rs.) (in Rs.) payment payment)
(in Rs.)

Report title 33
Annexure – XIII: Payment Register
Payment Register

Name of the employee

Serial Number Name of Employee Post Staff Code Date of start of Phone Number Signature Date of release
employment from the job

Payment Register

Year: Month:

Serial Name of Staff Role Monthly Monthly No of Total Date of Remarks Signature of Signature of Voucher
Number the Code report Wages/Salary working Payment payment the Treasurer Number
person submitted days employee

(Yes/No)

Report title 34
Annexure – XIV: Production Register
Production Register

Transfer from stock to production centre Processing

Serial Date Name of Scale/Wt/ Signature Signature Date Actual Processing (Weight) Damage Total Net weight Signature
the of the of the Scale/Wt/Unit Weight after
No unit
produce supplier receiver processing
After (Processed
receiving at production)
the
production
centre

Grade Grade Grade Scrap

1 2 3

Report title 35
 Transfer from production centre to warehouse Produce at the packaging centre

Serial Date Name of Scale/Wt/ Signature Signature Date Actual Packaging as per grade Damaged Net Weight Signature
the of the of the Scale/Wt/Unit after
No unit
produce supplier receiver packaging
after receiving at
the packaging
centre

Wt wt wt wt

Annexure – XV: Demand & Order Register

Demand & Order Register

Serial Dat Company/PG/RS Trader Buy Perform Nam Quantity Pric Total Advanc Advanc Remainin Remainin
Numbe e C Name Registratio Order a e of (in kg or e Payabl e e g Amount g Amount
r n Number Numbe Challan Item numbers e Amount Amount Date
r Number ) Amoun Date
t

Report title 36
Annexure XVI: Loan Register

Serial Amount of Loan Lender Borrower Contact Details Period of Loan Return Date Status
Number
E.g. Return date – 1.4.2022

For more information, please contact your Sangha and your block and district level offices of Anandadhara

Report title 37
Contact us
To know more, please visit www.grantthornton.in or contact any of our
offices as
mentioned below:

NEW DELHI NEW DELHI BENGALURU CHANDIGARH CHENNAI

National Office, 6th Floor, Worldmark 5th Floor, 65/2, B-406A, 4th Floor, 9th Floor, A Wing,
Outer Circle, L 41, 2, Block A, Bagmane L&T Elante Office Prestige Polygon,
Connaught Circus, Aerocity, Tridib, Building, Industrial 471 Anna Salai,
New Delhi - 110001 New Delhi - 110037 Bagmane Tech Area Phase I, Mylapore Division,
T +91 11 4278 7070 T +91 11 4952 7400 Park, Chandigarh - 160002 Teynampet,
CV Raman Nagar, T +91 172 4338 000 Chennai – 600035
Bengaluru - T +91 44 4294 0000
560093
T+91 80 4243
0700

DEHRADUN GURGAON HYDERABAD KOCHI KOLKATA

Suite No 2211, 2nd 21st Floor, 7th Floor, Block III, 6th Floor, 10C Hungerford
Floor, DLF Square, White House, Modayil Centre Point, Street,
Building 2000, Jacaranda Marg, Kundan Bagh, Warriam Road 5th Floor,
Michigan Avenue, DLF Phase II, Begumpet, Junction, MG Road Kolkata - 700017
Doon Express Gurgaon - 122002 Hyderabad - Kochi - 682016 T +91 33 4050 8000
Business Park, T +91 124 462 8000 500016 T +91 484 406 4541
Subhash Nagar, T +91 40 6630
Dehradun - 248002 8200
T +91 135 2646 500

MUMBAI MUMBAI NOIDA PUNE

11th Floor, Tower II, Kaledonia, 1st Floor, Plot No 19A, 2nd 3rd Floor,
One International C Wing, Floor, Unit No 309-312,
Center, (Opposite J&J Sector - 16A, West Wing, Nyati
SB Marg Prabhadevi Office), Noida - 201301 Unitree, Nagar Road,
(W), Sahar Road, T +91 120 485 Yerwada
Mumbai - 400013 Andheri East, 5900 Pune - 411006
T +91 22 6626 2600 Mumbai - 400069 T +91 20 6744 8800
T +91 22 6176 7800

For more information or for any queries, write to us at gtbharat@in.gt.com

Follow us @GrantThorntonIN

© 2020 Grant Thornton India LLP. All rights reserved.

“Grant Thornton in India” means Grant Thornton India LLP, a member firm within Grant Thornton International Ltd
entities which are its related parties as defined by the Companies Act, 2013.
Grant Thornton India LLP is registered with limited liability with identity number AAA-7677 and has its registered o
Connaught Circus, New Delhi, 110001.
References to Grant Thornton are to Grant Thornton International Ltd (Grant Thornton International) or its membe
Thornton International and the member firms are not a worldwide partnership. Services are delivered independen
firms.

www.grantthornton.in