I agree with that.
To describe it in a little more in detail:
The MFI or SHG (self help groups) based organization assists in forming
Self Help Groups. Once the operations of the SHG are streamlined, these
SHG's may or may not form separate legal entities eventually. Once the
SHG's become independent they will need to maintain separate financials. So
in effect, the loan and associated repayments that is given by the
organization to an SHG will need to be tracked both by the organization and
the SHG. For the organization it is an asset and for the SHG it is a
liability. The SHG will also need to track the utilization of this fund.
Having a separate MIS for each SHG is not practical as the SHG will not
have the financial volumes or the technical skills to justify and maintain
a separate MIS.
Thanks
Binny
On Tue, Nov 1, 2011 at 6:46 AM, HT Team <[email protected]> wrote:
> This is commonly practiced in India for Federation model, every hierarchy
> is considered as a cost center and they keep track of Financials and MIS at
> individual level.
>
> Thanks
> Team Hugo
>
>
>
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