berendina employment center (gte) ltd | annual … · youth employment issue, during the past 16...

BERENDINA EMPLOYMENT CENTER (GTE) LTD | ANNUAL REPORT | 2016


Name of the CompanyBerendina Employment Center (Guarantee) Limited – BEC

Legal FormA company limited by guarantee, registered under Companies Act No. 7 of 2007

Registration NumberGL 2303

Registered OfficeNo. 44/3, 3rd Floor, Narahenpita Road, Nawala, Sri Lanka.

Date of In-corporation25th February 2015

Company SecretaryRNH Holdings (Pvt) LtdRNH House, 622 B, Kotte Road, Kotte, Sri Lanka.

AuditorsErnst & Young Chartered AccountantsNo. 201, De Saram Place, Colombo 10, Sri Lanka.

Bankers:People’s BankNo. 75, Chittampalam A Gradiner Mawatha, Colombo 02, Sri Lanka.

CORPORATE INFORMATION


ANNUAL REPORT OF

BERENDINA EMPLOYMENT CENTER (GTE) LTD.2016


Sri Lanka has been grappling with the problem of youth unemployment for several decades. Many national-level studies on the subject have cited the mismatch between learnings imparted by the education system and the job market requirements, as the key reason for youth unemployment. The youth unrest that led to decades of violent conflict in Sri Lanka has often been attributed to the lack of employment and educational opportunities, exacerbated by inappropriate attitudes about work, amongst youth. In addition, there is a range of deeply entrenched social and cultural issues of exclusion and discrimination that deny some Sri Lankan youth access to both education and jobs.

Paradoxically, the youth continue to face difficulties in accessing employment, despite


CHAIRMAN’S MESSAGE

“During the year 2016, BEC has been

able to facilitate the obtaining of

employment through job linking

and social business start- ups,

for 1,808 youth and provide vocational

training scholarship to 1,281 youth.

Further BEC has provided scholarships

for 2,502 A/L students who hail from

economically disadvantaged families. .”

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nearly all sectors of the Economy experiencing labour shortages, in the recent post-war economic growth in Sri Lanka. Young people aged 15–24 years continue to be disproportionately affected by unemployment. The percentage of youth, who are unemployed and without formal education or training, has seen a steep upward trend since 2008. Youth require greater access to education and relevant skills development to attain productive employment and appropriate work in the global economy.

The skills gap is a complex problem that requires urgent attention, as youth strive for a life of purpose, dignity, and economic stability. While unprepared youth face significant barriers to enter the formal economy, the alternatives of informal-sector employment or unemployment, can potentially turn these assets into a societal burden, or even a security threat.

In Sri Lanka, academic and preparatory programs must be designed to cater to these needs, while public policies and private investment must also support the change. The private sector needs to invest in both human and financial capital in order to pave the path for the workforce of the future.

It is in the context of the aforementioned issues, that Berendina Employment Center (BEC) (Gte) Ltd have emerged in the forefront to address the youth employment issue, during the past 16 years. Interventions include the provision of Vocational training (VT) opportunities and scholarships to fund these courses for economically disadvantaged youth and also facilitating youth to find job opportunities in the private sector. During the year 2016, BEC has been able to facilitate the obtaining of employment through job linking and

social business start-ups, for 1808 youth and to provide vocational training scholarship for 1,281 youth. It was also seen that 68% of vocational training graduates secure jobs via BEC services or by other means. These activities relating to VT and provision of jobs were implemented in cooperation and coordination with the relevant Government line Ministries and Departments such as the Vocational Training Authority, Department of Manpower and Employment Promotion and District Secretariats. Private sector companies contributed significantly in the implementation of BEC activities and toward the achievement of these results.

BEC has been active in Social Business Development to address two rural development issues in the country - the unemployment (also underemployment) issue and the issue of limited access to drinking water for people living in North Central and Eastern regions. These regions have a high prevalence of Chronic Kidney Disease due to inferior quality drinking water available in these areas.

Interventions include the establishment of different types of rural level production centers as social businesses, to enable a group of people to gain full time or part time employment within the village itself. Through this programme, in 2016 alone, 175 individuals gained employment through these social businesses, with majority of them being rural women who are not in a position to leave the village for work. Many of these women work in their own homes taking responsibility for routine family matters. In the area of enhancing access to drinking water, two Reverse Osmosis water purification plants were established providing hygienic water for 882 families during 2016. This increased the total


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number of families benefiting from all 4 water projects undertaken by BEC (including the 2 projects commenced last year) to 1,502.

These social business projects were undertaken by Co-operatives formed by beneficiary workers themselves, local NGOs, CBOs and Government institutes like the Batticaloa Prison. BEC provides social business ideas and advice to the implementing agency. In addition BEC provides necessary market linkages and provides the training and infrastructure required for the social business. Most of the funding were interest-free loans or loans with partial grants for the implementing agency, enabling BEC to recover the loan from the income of the business and reinvest the fund in similar social businesses in the future.

Another milestone intervention BEC started in 2015 was the provision of scholarships for their further education benefitting economically disadvantaged students who were successful in their exams (having obtained 6 Credits including a credit pass for Mathematics from GCE (O/L) examination). The scholarship is given for 2 years of education for Advanced Level examination and also thereafter, as per educational requirements of the students. This was a new project initiative of former Chairman of the Berendina Group, Dulan De Silva. In 2016, BEC has provided scholarships for 2,502 such students.

The environment within which BEC is operating is rapidly changing. BEC will develop its strategies to accommodate such changes into BEC interventions in the future. The access to internet and other forms of IT advancements by rural youth is one of them, with as much as 72% rural youth

who access BEC services use SMART phones. Therefore, BEC will also explore the possibility of use of IT in the provision of BEC services to youth. This will enhance the cost efficiency of BEC services and also make it convenient for youth to access these services. The government in its budget for 2017 has allocated LKR 300 million for vocational training and also another LKR 300 million to provide on the job training in the private sector for another 10,000 youth. In 2017, BEC will make all possible attempts to connect these opportunities to the rural poor youth in BEC working areas. Thus, BEC will be further developed and strengthen her position as a specialized organization providing a wide range of services to secure better employment opportunities for youth in poor families in rural and plantation sectors in Sri Lanka.

Anura AtapattuChairman


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INSIDE Chairman’s Message..................... List of Abbreviations ........................ List of Tables ................................... BEC at a Glance (Since 2000) ........ Executive Summary ....................... Organization Structure .................. Branch Locations in Sri Lanka ........ Branch Network .............................. Board of Directors .......................... Management Team .......................

1. Progress of Activities .....................1.1 Career Guidance and Counseling Training for Youth ...........................1.2 Provision of Scholarships for Vocational Training ........................1.3 Institutional Building Grants for Vocational Training Centers ...........1.4 Job Linking ...................................... 1.5 Bright Student Scholarship Program ...........................................1.6 Progress on Social Business Program ..........................................1.7 Computer-based Learning Centers .............................................1.8 Institutional Building Grant for Tea Leaf Vision ................................

2. Staff Capacity Building ..................2.1 Capacity Building on Career Guidance and Counseling .............. 2.2 Staff and Partner Capacity Building on Social Business .............2.3 Participation in two International Workshops .......................................

3. Financial Statements ....................

MissionOur Mission is making rural

and plantation youth productive members of society by enabling them

to find employment and income through career guidance, vocational

training, job linkages and creating sub-contract and social business

opportunities.

Our Vision is tocreate an empowered,

equitable society where poverty does not exist.

Vision


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10111213

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2627

30

33

42

43

44

46

46

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4805


Table - 1: Details of career-guidance programs conducted

Table - 2: Number of scholarships for Vocational Training (VT) granted

(District-wise)

Table - 3: Information of institutional building grants

Table - 4: District-wise provision of jobs

Table - 5: Number of job fairs conducted

Table - 6: Scholarships provision: District-wise

Table - 7: 2016 A/L results analysis

Table - 8: Details of CBL Centers

BEC - Berendina Employment Center (Gte) Ltd.

BMI - Berendina Micro Finance Institute(Gte) Ltd

BMIC - Berendina Micro Investment Company

CBO - Community Based Organizations

CBLC - Computer Based Learning Centers

INGO - International Non-Government Organizations

NGO - Non Government Organizations

NAITA - National Apprentice and Industrial Training Authority

NVQ - National Vocational Qualification

VT - Vocational Training

VTA - Vocational Training Authority

UNIVOTEC - University of Vocational Technology

WUSC - World University Service of Canada

LIST OF ABBREVIATIONS

LIST OF TABLES

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2,502 SCHOLARSHIPSFOR BRIGHT STUDENTSLINKED 17,511

YOUTH WITH JOBS

80,000+CAREER GUIDANCE &COUNSELLING

9,527SCHOLARSHIPS FORVOCATIONAL TRAININGS

1,700+BENEFITING FAMILIES THROUGH SOCIAL BUSINESS

BEC AT A GLANCE (SINCE 2000)

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In 2016, Berendina Employment Center (Gte) Ltd.

continued its interventions in three main areas, with

a mix of financing from Berendina Stichting in the

Netherlands, as the main donor and funding from the

corporate sector: (1) Enhancing youth opportunities

to gain skills and secure employment (2) Provision

of educational scholarships to bright students who

are economically disadvantaged and (3) Addressing

identified social issues through social businesses.

During 2016, BEC was able to facilitate employment for

1808 youth (through job linking and social business),

from rural and plantation areas where Berendina has

been involved for several years. The total number

of youth who received scholarships for vocational

training amounted to 1,281.

One of the significant factors for enhanced impact

during the reporting period was the development

and the strengthening of partnerships with leading

INGOs such as Care International, World Vision Lanka

and WUSC. Further, BEC was able to continue its

partnerships with Corporates, namely Aitken Spence,

Jetwing Hotels, SANKEN, and Nawaloka Hospital,

in order to implement youth skills-development

programs.

Another significant achievement by BEC was the

provision of scholarships to a large number of

under-privileged yet bright students, who have

demonstrated academic excellence in GCE O/Ls and

Grade 5 scholarships exam. The scholars who fell into

this category were those grappling, in the face of

financial challenges, to continue their education up to

the G.C.E. Advanced Level Examination and university

education. During the period under review, BEC was

able to assist a total of 2,502 students by providing

them with scholarships, in order to meet their

financial requirement which includes 155 students

EXECUTIVE SUMMARYwho passed grade 5 scholarships and 282 university

students in addition to the A/L students. Of the

number who received assistance, 346 students sat

for the GCE Advanced Level examination in 2016. An

analysis of the results of 298 students (information of

48 students were not available) revealed that a total of

228 students out of 298, had passed the examination.

Give2Lanka was also a leading partner who assisted

BEC in this worthy cause. In 2016, they provided

Rs.1.5 million worth of scholarships and are

currently reaching out to the corporate sector and

philanthropists to grow the funding base for activity

expansion.

BEC embarked on activities related to establishing

Social Business, at the end of 2014 with an aim to

provide sustainable solutions to social problems. The

concept has grown steadily and in 2016 prioritized

focus towards addressing two main social challenges;

unemployment and lack of access to quality drinking

water in the rural areas of the country.

BEC’s Social Business program achieved key successes

in the year 2016, with considerable impact and

outreach in the areas of intervention. Some of the

key achievements during this period have been

summarized below.

Initiation and completion of ‘Manudiya Saviya’

water project in Nochchiyagama, with funding of

Rs.4 million from HSBC.

BEC received free consultancy services from SAP

MBA Sabbatical team to develop a Social Business

Model for the organization. BEC also organized a

Social Business workshop in September 2016, with

the motive of building capacities among BEC staff

and with existing and potential partners. A major

segment of the workshop was conducted by the

visiting team from SAP MBA.


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ORGANIZATION STRUCTURE

Board ofDirectors

GeneralManager

GeneralManager -

Finance

SeniorDistrict

Manager

Snr. ManagerSocial

Business

DistrictManagers

Dty. ManagerSocial

Business

Project Officers / Project

Assistants

Head ofCommunication

HROfficer /Admin.

Executive

Head ofHuman

Resources& Admin.

ProgrammeAuditor

Accountant

Snr. AccountsExecutive

AccountsExecutive

ProcurementExecutive

ExecutiveCommunication


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BRANCH LOCATIONS IN SRI LANKABERENDINA EMPLOYMENT CENTER (GTE) LTD | ANNUAL REPORT | 2016

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BRANCH NETWORK

SabaragamuwaProvince

KegalleDistrict

2 Branches

CentralProvince

NuwaraEliya District2 Branches

SouthernProvince

GalleDistrict

1 Branch

MataraDistrict

1 Branch

EasternProvince

TrincomaleeDistrict

1 Branch

BatticaloaDistrict

1 Branch

North CentralProvince

Anuradha-pura District

1 Branch

North WesternProvince

Puttalam District

1 Branch

NorthernProvince

MullaitivuDistrict

1 Branch

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BOARD OF DIRECTORS

Anura AtapattuChairmanSkills and Experience:Extensive management and consultancy experience in Microfinance and enterprise development services, for local and international organisations including World Bank, Asian Development Bank, United Nations Development Programme, Women’s World Banking and Mix Market. He holds a Master’s of Business Administration from the University of Lincoln, UK, a Postgraduate Diploma in Economic Development, Certificate in Agriculture Extension and Rural Development from the University of Reading and a B.Sc. in Agriculture (Special) Sri Lanka.

Current Appointments:Chairman -Berendina Employment CenterBerendina Microfinance InstituteBerendina Development ServicesBerendina Micro Investments Company LimitedDeputy Chairman -Lanka Microfinance Practitioners’ Association

Jagath GodakandaDirectorSkills and Experience:Independent Consultant for local and international organisations in enterprise development. He holds a B.Sc. in Agriculture (Special) (Sri Lanka) and a Postgraduate Diploma in Business Management from the National Institute of Business Management.

Current Appointments:Director - Berendina Employment CenterBerendina Development ServicesBerendina Microfinance Institute


MANAGEMENT TEAM

Hemantha Jagath HarischandraGeneral Manager

Indunil EkanayakeGeneral Manager - Finance

Kapila SubasingheHead of HR and Admin.

Dayan EdirisingheSenior Manager -

Social Business and Private Partnership Projects

Jayatissa ManamperiSenior Manager

Amila SanjeewaAccountant

S. D. Nirosh MadhusankaProgramme Auditor

Gayan Suranga Information & Communication Officer

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PROGRESS OF ACTIVITIES15

Youth are seen here actively participating at the Job-fair at Mullaitivu.


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Career counseling and guidance remains an integral aspect of BEC’s services. BEC provides guidance to the respective youth to direct them in the selection of their preferred and most suitable career path, in line with specific interests and talents. Further, BEC’s career counseling and guidance programs assist individuals facing difficulties in securing employment, retaining employment and choosing suitable vocational training programs. Difficulties in the retention of employment may be attributed to workplace issues such as inter-personal problems with colleagues and/or difficulties in adjusting to the role expected in the new position.

BEC staff provide individuals, as well as groups, career-guidance, counseling, psychometric testing and informal exercises to help individuals discover and pursue their goals and skills, with greater confidence and perseverance. BEC also provides assistance to government institutions and other NGOs in organizing large scale career-guidance programs.

In 2016 alone, BEC conducted 75 career guidance training programs, through a total of 8,462 youths benefitted from the training.

Branch No. of Trainings Male Female Total conducted

Yatiyantota 4 80 298 378

Kegalle 3 202 180 382

Nuwara Eliya 3 88 111 199

Ginigathhena 6 50 189 239

Anuradhapura 12 421 451 872

Trincomalee 10 150 221 371

Galle 6 767 930 1,697

Matara 5 329 670 999

Batticaloa 9 353 318 671

Puttalam 8 351 409 760

Mullaitivu 9 493 1401 1,894

Total 75 3,284 5,178 8,462

With these trainings BEC was able to identify needy youth for providing vocational and professional trainings. Those who were in search of jobs have been enrolled in district-wise job seeker databases and have been directed to job fairs.

1.1 CAREER GUIDANCE AND COUNSELING TRAINING FOR YOUTH

Table -1: Details of career-guidance programs conducted


900080007000600050004000300020001000

020157385

20168462No. of Youth

Chart 1 - No. of Youth trained on Career Guidance

Youth are seen here actively participating at a Career Guidance Programme at Mullaitivu17


1.2 PROVISION OF SCHOLARSHIPS FOR VOCATIONAL TRAINING

Despite the fact that the Sri Lankan economy witnessed a considerable growth in the last decade, the benefits resultant from this growth has not equitably flowed down to all segments of the society. Hence, there is still a high prevalence of under-employment, low levels of completing education,, school dropouts and inadequate vocational training to equip the youth to better access employment opportunities. The shortage of a skilled workforce is evident from the discrepancies of demand and supply in the market. The accessibility to vocational training for poor youth is still a constant challenge, both in terms of lack of financial resources to obtain training and availability of proper institutes in close proximity.

The objective of providing scholarships to undertake vocational training programs is to harness the capabilities of the rural poor population by providing them with knowledge, skills, tools and finance to ensure strengthened livelihood options. The primary objective of this program is to deliver market-driven skills training to the rural youth in the ages between 18 to 28, and provide options for job placements in suitable sectors

During 2016, BEC was able to identify and select 1,281 youths, who required scholarships to undertake vocational training. The beneficiaries of the scheme were chosen through a rigorous screening methodology. The primary eligibility criteria were that the students should be from Samurdhi-recipient families, where the average per-head income of a family member, is below Rs. 5,000 per month. During 2016, the total amount spent by BEC for the provision of vocational training scholarships amounted to approximately Rs. 13.5 million.

Table - 2: Number of scholarships for Vocational Training (VT) granted (District-wise)

Branch No. of VT Scholarships Provided

Yatiyanthota 57

Kegalle 80

Ginigathhena 127

Nuwara-Eliya 76

Anuradhapura 76

Trincomalee 73

Galle 185

Matara 203

Puttalam 133

Batticaloa 178

Mullaitivu 93

Total 1,281

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Chart 3 - Sector-wise representation of Vocational Training Scholarships recipients

Chart 2: Gender Representation of Scholarship Recipients

38%62%

MaleFemale

Welding2%

Electrical6%

Other16%

JCB11%

QC3%

Secretary2%

Nursing9%

Sewing(Juki Machine etc)

6%

InformationTechnology

10%

A/C &Refrigerator

2%

Hotel, Bakery &Catering

21%

BuildingConstruction

2%

Motor Cycle & Three Wheeler

2%

AluminumFabrication

3%

Auto Electrical,Motor Mechanic

5%

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1.2.1: Key partnerships developed for youth trainingIn addition, to directing identified youth for vocational training programs conducted by government and private sector institutes, BEC was also able to develop partnerships with leading private sector companies such as Jetwing Hotels,

A. Partnership with Care International and Miani Technical Training Institute

Berendina signed a tri-partite Memorandum of Understanding (MOU) with Care International and the Miani Technical Institute in April 2016, with the intention of broadening employment prospects for the youth of the Batticaloa district, in the hospitality industry. The MOU was in effect for a period of nine months, with the ultimate goal of employing between 50-75 trained youth in the hotel industry, by the end of the period.

Youth were selected from eight DS divisions in the Batticaloa district, inclusive of 19 females and 55 males. The selected youth received theoretical

Aitken Spence, Sanken and Nawaloka Hospitals to provide trainings and job placements. These linkages created by BEC helped unemployed youth gain employment placements within companies wherein they underwent training.

training in the fields of cookery, housekeeping and food and beverage, for a period of six months. Consequently, they were provided with on-the-job-training by selected hotels, for a period of three months.

In addition, IT and language classes were organized for this group of youth as a mechanism to enhance their knowledge and further empower them in their career. Care International contributed Rs. 2,816,550/- for this program while BEC made an investment of Rs. 600,000/-. The final exam was due to be held in January 2017.

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B. Partnership with Jetwing Hotels for Youth Training in Galle, Nuwara Eliya and Anuradhapura

B.1 Partnership with Jetwing Galle BEC in conjunction with Jetwing Hotels selected 19 youths from the Galle district to undertake training in the hospitality industry at the Lighthouse Hotel in Galle.

The youths were provided with a six-months travel allowance by BEC to engage in this training. Following the completion of this program, 14 youths secured employment at Jetwing Hotels, while BEC is in the process of finding employment for the remaining 5 youths. The youths who were absorbed into Jetwing Hotels are presently earning an average monthly salary ranging from

B.2 Jetwing St Andrews, Nuwara EliyaA similar training program was initiated in Nuwara-Eliya in order to train 10 youths on Hotel Management. These individuals, directed by BEC, were selected by the St. Andrews Hotel in Nuwara-Eliya for a six-months training. Out of the 10 selected, only 5 were able to complete the training and only two were absorbed into Jetwing Hotels, while the rest have been linked with the other hotels in the Nuwara-Eliya District.

B.3 Jetwing Lake, Dambulla During 2016, the Jetwing Group launched a new resort in the Dambulla area. Subsequently, BEC was able to grant scholarships for seven youths residing in the Kekirawa and Ippologama areas. The scholars underwent a three-month initial training at the Vocational Training Center in Dambulla and thereafter gained placements at Jetwing Dambulla to work as trainees. At present, all the seven youths are employed in the hotel and they earn an average income ranging from Rs. 9,000 and Rs. 15,000 a month.

Rs. 14,000 to Rs. 20,000. BEC contribution for this program was Rs. 228,000 while the contribution from Jetwing Hotels amounted to Rs. 530,430.

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C. Partnership with Aitken Spence Hotels and Care International

During the period under review, BEC was able to develop a partnership with Care International and Aitken Spence Hotels in Galle (Ahungalle), with the intention of initiating a youth training program. The objective was to grant an opportunity for the under-privileged, skilled youth to secure employment in new hotels to be opened in the Ahungalla area.

Subsequently, 27 females and 54 males that were selected from 4 DS divisions in the Galle district, received theoretical training in the fields of cookery, housekeeping and food and beverage for a period of 4 months.

Thereafter, the selected youth underwent an on-the-job-training for a period of three months. The estimated fund allocation by Care International for this program was Rs. 2 million. BEC spent Rs. 390,000, in order to provide traveling allowance for participants of the training program.

Following the completion of this training period, 43 youths were absorbed into the staff of Aitken Spence Hotels. A majority of them are earning an average basic salary of Rs. 10,000.

BEC, meanwhile, is in the process of finding jobs for the rest of the youth that underwent training.


1.2.2 Job Status Survey on youth who obtained Vocational Training Scholarships in 2015

BEC is tracking scholars who obtained vocational training during the previous year with the intention of assisting them in securing employment. In 2016, a survey conducted to assess the job placement rate of the youth who received vocational training scholarships in 2015, revealed that 68% of them had secured job placements. This study was done for 1,007 VT graduates, revealing that a total of 478 VT graduates from 707 respondents, were presently employed. Those who do not have jobs so far are provided with continuous counseling, fed with information related to job vacancies and invited for job fairs, so that they could strive for suitable jobs.

Chart 4 - Employment Status

During 2016 BEC has provided 1281 scholarships and the average cost per scholarship is Rs. 9,891 and the average cost in 2015 is Rs. 9,177.

Not Employed Employed

Comparison of Scholarships Provision (2015 and 2016)

2015 2016

1400

1200

1000

800

600

400

200

0

1,010

1,281

No. of Youth

1.2.3 Comparison of Scholarships Provision (2015 and 2016)

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BERENDINA EMPLOYMENT CENTER (GTE) LTD | ANNUAL REPORT | 2016BERENDINA EMPLOYMENT CENTER (GTE) LTD | ANNUAL REPORT | 2016

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Born in a remote village hamlet of Arambahena, Tibbatuwawa in the Akuressa DS division 22-year old Rasindu, lives in a humble home with his father, who is a carpenter, his mum and his two younger, school-going sisters.

In September 2014, Rasindu took the first steps in following his dreams and visited the BEC office in Matara, earnestly requesting to follow a Vocational Training course facilitated by them. As destiny would have it, he was selected to follow a course in Hotel Management at the training section run by the Lighthouse Hotel in Galle. This one-year course is a comprehensive one divided into two segments (6 months vocational training and 6 months on-the-job-training) and run by the hotel which falls under the Jetwing Group under their charity programme. Rasindu received an exposure and experience that laid the foundation for his career. After brief discussions on eligibility, Rasindu was enrolled into the 2015 batch and

MY STOREY W. Sandaka Rasindu Nirman

commenced his training. BEC Matara went the extra mile in providing Rs. 15,000.00 to meet a part of his transportation fees.

Rasindu was granted a placement in the Lighthouse Hotel Galle, for his on-the-job training. Upon completion of 6 months, in 2016, he was offered a job at the same hotel as a Steward. Rasindu now has the job security he worked hard for and now earns a basic monthly salary of Rs. 28,000 with additional allowances and benefits.

Rasindu intends on pursuing his dream of becoming a Hotel Manager and has not forgotten his simple beginnings. He feels indebted and grateful to BEC for the opportunity he received, and has very high levels of job satisfaction. In his commitment to personal and professional growth, he envisages that he will follow an Advanced Hotel Management Course and keep working hard.


Arumugam Shanthi is a persevering and courageous 24-year-old girl, who has broken the shackles of gender stereotypes in steering her future life. Living in the war-affected village of Udayarkattu, Puthkudiyiruppu in the Mullaitivu District with her parents and younger brother, depending for several years on the sole wage of her father who is paid less than the daily labourers’ rate as he was injured in the war.

While Shanthi’s younger brother studied up to G.C.E Ordinary level and presently work as an unskilled laborer on temporary basis, Shanthi studied hard to qualify in her Advanced Level (Arts).

BEC involvement Having participated in a career-guidance program jointly organized by BEC & the Sarvodaya in Mullativu, Shanthi showed a keen interest to enroll in a “Motor Bicycle Technician Course” well-aware of and despite the fact that the subject is non-traditional and non-conventional particularly for women in the North. Following the completion of this career guidance program, Shanthi registered with Sarvodaya and followed the course in a satisfactory manner. The course, in which a travelling subsistence (Rs. 8,000) was paid by BEC, was offered by Sarvodaya, with the financial assistance from WUSC-ASSET. The course concluded in December 2016 and thereafter Shanthi was invited to a motorbike shop, where her determination and commitment was recognized in earning her employment to work as a spare parts Sales Assistant from January 2017 onwards. She is currently getting Rs.10,000 per month and enjoys her work responsibilities and her financial independence.

MY STOREY Women are also capable of doing male-dominated jobs,proves Ms. Shanthy Arumugam

Future plansShanthi has expressed her interest to study up to NVQ level 7 within the next 05 years and has an ambition of becoming an Electrical Engineer under UNIVOTEC. Her plans do not end there – with the commitment and dedication required, she strives to become a an entrepreneur in establishing her own Motorcycle workshop in the near future, as there is a heavy demand for motor-bike repairing and services, particularly for bikes driven by women. Shanthi is extremely grateful for the support and assistance by BEC, WUSC and Sarvodaya without whose partnership, she says, her career would not have elevated to this new level.

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BEC provides institutional building grants annually for selected Vocational Training Institutes located in remote areas. The following are some of the benefits that accrue from providing such equipment to Vocational Training Centers located in remote areas.

• Increased capacity of the Institute to cater to a higher number of students• A higher recognition for the course certificate at NVQ Level Four / Five• An improvement in students’ experience in utilizing modern technology

During this year, BEC selected Trincomalee, Batticaloa and Galle Districts to provide institutional building grants. A multi-purpose wooden carpentry machine was given to the Gomarankadawala Vocational Training Center located miles away from Trincomalee town. An electrical control panel was provided to the Eastern Technical Institute in Batticaloa, a Non-Governmental Organization which conducts market-oriented vocational trainings free of charge. Furthermore, another request has been received from the Galle VTA to provide them with sewing machines for Elpitiya VT Center, which is a remotely located VTA in the Galle district. Total amount invested by BEC for the provision of these equipments is Rs. 296,710.

District Type of Institute Cost (Rs) No. of students

equipment benefiting Annually

Batticaloa Communication Eastern technical 87,460 27 system panel institute

Galle Sewing Machines VTA Elpitiya 74,250 40

Trincomalee Wood Carpentry VTA - 200,000 60 Machine Gomarangadawela

Total 361,710 127

Table 3 - Information of institutional building grants

1.3 INSTITUTIONAL BUILDING GRANTS FOR VOCATIONAL TRAINING CENTERS

Provision of Communication System Panel to Eastern Technical Institute

Provision of Sewing Machines to VTA Elpitiya


1.4 JOB LINKING

BEC has been able to build partnerships with over 250 companies, to undertake a pivotal role of job linking. As a result of these partnerships, BEC is informed of job vacancies at these companies, as they arise. All job seekers requesting BEC’s assistance are registered on an online database, segmented at a District Level.

From time to time, the records of the job seekers in the database are linked with the potential employers, after matching relevant qualifications. BEC shares and promotes vacancy information through BMI and BMIC branch networks, and also the networks of different like-minded organizations working closely with youth organizations, to enable more efficient registration with BEC.

BEC’s role in job linking for youth is as follows;• Identify job opportunities and share them among youth• Organize and conduct job fairs • Referral of individual applicants for jobs • Maintain consistent and regular follow-up of jobs • Assisting with resume preparation • Coaching on conducting an effective job search • Conducting pre-interviews (Preparatory interviews) • Maintain up-to-date information on labour market trends and the most effective job search strategies.• Maintain and update the employer database

During the period under review, BEC was able to provide a total of 1,633 jobs for rural youth, including youth from the plantation sector, enabling them to earn sufficient income and buildup their careers and their future.

Place No. of

Jobs Provided

Yatiyanthota 146

Kegalle 100

Ginigathhena 83

Nuwara Eliya 190

Anuradhapura 54

Trincomalee 100

Galle 126

Matara 287

Batticaloa 258

Puttalam 198

Mullaitivu 90

Total 1,633

The chart below shows the salary ranges of the jobs linked by BEC. According to this analysis, 79% of youth earn an income of over Rs.10, 000 a month, with approximately 47% earning over Rs. 15,000 salary a month. The BEC support provided to youth in this benefits youth who do not have experience or educational qualifications, and as such this average entry-level salary is commensurate.

Table 4:District-wise provision of jobs

Chart 5 - Salary Ranges of Jobs Given

Rs. 5,000-Rs. 1

0,000

Rs.10 ,0

00-Rs. 15,000

Rs.15 ,0

00-Rs. 20,000

Above Rs. 2

0,000

347

21%

520

32%

450

28%

316

19%

Number of Jobs %

27


1.4.1 Job FairsBEC uses two different strategies to implement their intervention area of job linking. 1. Individual referrals to companies after conducting short counseling sessions.2. Providing a forum at which job seekers and employers can meet. This is done by organizing job fairs or career fairs.

The purpose of these Job Fairs is to provide companies a forum for identifying potential candidates, with a large number of potential candidates conveniently converging in one venue. Job Fairs are unique events for companies to meet and interact with sizeable group of outstanding youth. The Job Fair enhances youth’s access to job placements and facilitates career information exchanges for different sectors.

During 2016, BEC successfully conducted an unprecedented 123 Job fairs, with a total number of participants of 10,329. It has been observed that female participation at job fairs of is comparatively higher than that of men, with about 6,727 females participating, whereas only 3,602 males participated. Despite this initial eagerness to seek employment, it was observed that the proportion of females reporting to work once selected for a particular job, was comparatively lower, when compared to the male. The key reason behind this is the long distance between their homes and factories or companies whereat they secured employment. BEC has discussed this particular issue with few companies and these companies are deriving some alternative remedies, in the process of addressing them. Ones such solution discussed was providing safe accommodation facilities in close proximity to the workplace, wherever practical.

Table 5: Number of job fairs conducted

Branch Number of Total Job Fairs Participants

Yatiyantota 16 832

Kegalle 11 254

Nuwara Eliya 10 685

Ginigathhena 9 683

Anuradhapura 7 473

Trincomalee 10 786

Galle 7 1189

Matara 17 1333

Batticaloa 10 1447

Puttalam 22 1551

Mullaitivu 4 1096

Total 123 10,329

Chart 6 – Gender representation of Job Links

MaleFemale

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MY STOREY Sriskandarajah Babyanjana

With her roots in Batticoloa, 27-year-old Sriskandarajah Babyanjana is the eldest of three, in a family that faces financial hardships.

In pursuing her career and options towards financial stability for both her family and herself, she registered with the Berendina Employment Center (BEC) seeking employment for the position of Administration and Finance Officer having completed a Diploma in NCAT, at the Technical College in Batticaloa. She had previously worked as a trainee at the Irrigation Department for a period of six months. Continuously looking toward professional and professional betterment – she sought this change as part of her strategy for career enhancement.

Constantly engaging with BEC and the opportunities they presented, in 2015, Babyanjana participated at a Job Fair held at the Technical College in Batticaloa and registered her details with BEC’s Job Bank.

Thereafter, BEC directed her to an interview at the HBS College in Batticaloa, which was on the lookout for a person of Babyanjana’s caliber and with her skillset. On 16th of January 2016, she was selected for the job as a Finance Assistant at this College and was offered a monthly salary of Rs. 15,000/-.

Babyanjana delightedly grabbed the opportunity and is presently very satisfied with this new position. She recognizes and appreciates, with indebtedness, the role played by BEC in influencing and shaping her career. She conveys her gratitude to BEC for aiding her in finding suitable employment and helping her build a pathway to a successful career.

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1.5 BRIGHT STUDENT SCHOLARSHIP PROGRAM

BEC provides scholarships for children who excel in G.C.E Ordinary Level by achieving a minimum of 6 credits including Maths, with special priority been given to students who hail from economically disadvantaged families. The selection criteria stipulated is - students from either Samurdhi families or if the family’s average per person income falls to less than Rs. 5,000 per month. Initially they are provided a monthly educational support currently ranging from Rs. 1,000 to Rs. 1,500.

Bright Student Scholarships is not merely a financial provision, but also includes the conducting of parent and student mentoring programs. This is to ensure that parents are aware of their role and responsibility in providing a conducive environment and motivation for children to study.

During 2016, BEC was able to provide a total of 2,502 scholarships which includes 155 students who passed grade 5 scholarships exam and 282 university students in addition to the A/L students Of these scholarship recipients, 346 students sat for the G.C.E. A/L examination held in August 2016. BEC was able to obtain information of the results of 298 students, from the 346 students. According to the assessment of these results, it was observed that 228 students obtained at least 3 S passes out of the 298 students. The percentage of students who passed obtaining at least 3 S passes was 77%.

Table 6: Scholarshipsprovision: District-wise

Table 7: 2016 A/L results analysis

Branch No. of students Results counted Passed Failed Passed % sat for A/L

Yatiyanthota 55 48 33 15 69

Kegalle 2 2 1 1 50

Nuwara Eliya 2 0 0 0 0

Ginigathhena 55 49 33 16 67

Anuradhapura 51 36 24 12 67

Puttalam 62 48 43 5 90

Trincomalee 63 63 49 14 78

Batticaloa 55 51 45 6 88

Mullaitivu 1 1 0 1 0

Total 346 298 228 70 77

District Cumulative total

Kegalle 367

Nuwara Eliya 140

Ginigathhena 338

Anuradhapura 252

Trincomalee 325

Batticaloa 320

Puttalam 265

Galle 100

Matara 173

Mullaithivu 222

Total 2,502


Chart 7- Results Analysis Stream-wise

Chart 8: Progress Comparison of Scholarships provision in 2015 and 2016

3,000

2,500

2,000

1,500

1,000

500

-20151,104

20162,502No. of students

Technology

Maths

Bio

Commerce

Arts

0Arts91

11691

Commerce718485

Bio225342

Maths112446

Technology192190

PassedNumber sat%

The Chairman of Berendina Group Mr. Anura Athapattu is handing over the certificate to one of the Bright Students Scholarships beneficiary.

20 40 60 80 100 120

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MY STOREY

Ms. Fathima Ijasha is a 19 year old gifted and talented girl, who sat for her A/L examination in 2016 August in the Technology stream at Mutur Central College. There are 5 members in her family and the sole breadwinner was her father who works as a driver and earns a monthly salary of LKR 20,000.

Despite the many challenges faced, largely based on financial shortages, Fathima achieved the remarkable accomplishment of obtaining the 2nd rank in Trincomalee district and the 41st rank on an Island-level analysis of her results with A, 2Bs and a 2.3448 Z score.

Having obtained 6As, 2Bs and a C (including a “C” for mathematics) in her O/L examination, she started studying her A/L’s. It was then that she faced numerous financial challenges in pursuing proper education. Although her father tried to help her with financial resources, unfortunately this support was limited and, she realized that private tuition classes were both unaffordable and location-wise too far. Fortunately, her father was informed about Berendina’s Bright Student Scholarship program and she was able to gain a scholarship which supported her with LKR 1,000/=

a month from August 2014. This financial support was very useful to her as it motivated her to continue her education and achieve tremendous success in her A/L examination.

Her future aim is to become a teacher once she completes her degree at University of Sri Jayawardanapura in Colombo. On behalf of her family, she expresses her heartfelt gratitude to BEC that supported her during the most opportune yet challenging period in her schooling career.

Ms. K. Fathima Ijasha

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1.6 PROGRESS ON SOCIAL BUSINESS PROGRAM

The Social Business Program undertaken by Berendina Employment Centre has been structured to address two key social issues in the country.

These issues, acutely felt in the selected locations and warranted immediate attention, are that of high levels of unemployment and that of limited access to quality drinking water. BEC’s intervention in contributing toward the alleviation of the unemployment challenge is through their approach of encouraging and facilitating private companies to establish rural level production centers. On the other hand, the issue of access to quality drinking water is tackled by tying up with local level NGOs or CBOs in establishing water purification plants.

1.6.1 Tackling high unemployment

In order to address the issue of high unemployment and provide employment to people in rural areas, BEC facilitated the initiation of sub-contracting activities by securing

1.6.1.1 Sub-contracting Activities in Kegalle District

The YMICS established to undertake sub-contracting activities, currently carries out three businesses namely: Cargo nets production, Artificial Flower-based production and Seat Belts production. It is significant to note that all the products manufactured by the three said businesses, are aimed solely at supplying to the export market.

During the period under review, YMICS has been able to provide employment opportunities to nearly 90 unemployed persons living in Yatiyanthota, Kithulgala, Dehiowita,

production orders from reputed companies. With that BEC has been able to provide employment opportunities for 175 people (154 female and 21 male) in the area.

Bulathkohupitiya and Ruwanwella DS divisions.

During the year, YMICS achieved operational sustainability. Both the seat belt and cargo net businesses were able to run profitably despite the flower segment of operation being unable to meet at least its operational costs. However, as a co-operative, YMICS has been able to record a profit during the year’s operation due to its continued focus on increasing productivity. Total production value of YMICS in 2016 was valued at Rs. 9.82 million while the profit achieved for the year, stood at Rs. 601,352.

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34

The partnership with Lanka Harness Company strengthened this year resulting in a better understanding between both institutions. Lanka Harness, a subsidiary of a Japanese firm and located in the Export Processing Zone at Biyagama in Sri Lanka, manufactures impact sensors for exports to Japan, Romania, Thailand, India and Indonesia. The firm also manufactures switches

Chart 9 - Income and expenditure of the YMICS 2015 Vs 2016

YMICS and Lanka Harness partnership

for seat belts and airbags for world-renowned automobile brands. Since October 2011, this seat-belt production center has been run by YMICS by securing production orders from Lanka Harness Company. The project created employment opportunities for more than 40 persons with the average monthly income earned by an employee, ranging from Rs. 8,000 to Rs.15, 000.

12,000,000

10,000,000

8,000,000

6,000,000

4,000,000

2,000,000

-

(2,000,000)Total

Income2015

9,992,782

TotalExpenses

201510,711,353

NetProfit / Loss

2015(732,932)

TotalIncome

20169,909,802

TotalExpenses

20169,308,449

NetProfit / Loss

2016601,353Rs.


YMICS with AMSAFE Bridport

AMP Ceylon manufactures home décor and gift items such as pre-made floral arrangements, dried and pressed materials, candles, poly-silk flowers, plants and foliage, fruits, ceramic products, water hyacinth and Bamboo products targeted at the modern lifestyle consumers.

Through the AMP and YMICS partnership, flower production centers commenced in 1998 with

This partnership was initiated in the year 2014. AMSAFE BRIDPORT designs and manufactures highly engineered textile products, specializing in air-frame restraints and barrier solutions, cargo bundling and movement systems and RPG protection for armored vehicles. This project, which commenced during the year 2014 at Dehiowita, was expanded to Yatiyanthota during the year 2015. The AMSAFE provides materials, tools, training programs and transport facilities. This partnership was further strengthened this year and the project is now able to operate

profitably. As a result, the company has agreed to increase order volumes and has provided the opportunity to commence a new production center in Kithulgala area.

At present, 23 workers including a staff member work on the Cargo Net project in both centers. BEC is expected to ramp up production up to 3,500 nets/month during the year 2017 and is targeting to provide employment opportunities to 55 persons. On average, they have been able to earn Rs. 15,000/ month.

the objective of generating opportunities for rural women for an income earning through home-based production. However, sustainability of the project was challenged as a result of limited orders and fluctuations in order volumes experienced during the year. By now, more than 30 women (aged between 15 years to 70 years) are engaged in this business and earn a monthly income varying from Rs.2,500 to Rs.5,000.

AMP Ceylon Partnership

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36

The project was rejuvenated after April 2016 and at present, around 35-45 people are being benefited in Kebithigollawa areas. However, the project faced a serious setback during both the first quarter and the latter half of the year due to diminishing order volumes. As a result, the total

1.6.1.2 Artificial flower and flower-based production center at Kebithigollawa Anuradhapura District

In 2016, BEC introduced Coir Brush production as a cottage industry for the members of ‘Wilpotha Kantha Ithurum Parisramaya’ at Wilpotha in Puttalam district. BEC negotiated with Lionel Coir Products in Wilaththawa, Bingiriya, a private company that manufactures and sells coir products and arranged a sub-contract to purchase the finished products from the ‘Wilpotha Kantha Ithurum Parisramaya’.

The project currently gives employment opportunities for 15 members. At the end of the year, the producers have been able to earn more than Rs. 5,000/month as an additional income by working during their leisure.

1.6.1.3 Coir Brush Production Center - Kantha Ithurum Parisramaya Society,Wilpotha in Puttalam district

workforce has been reduced to 35. Although there is a considerable fluctuation in production volumes, the project is sustained and provides an opportunity for rural women to earn an extra income. Their monthly income varies from Rs. 3,000 to Rs. 10,000.


During the last quarter of the period under review, a coir-based production center was established at the Batticaloa prison under the ownership of Prison Welfare Society at Batticaloa. 15 prisoners were given the opportunity to work in this center as skilled laborers enabling them to utilize their time in prison productively to earn an additional income.

BEC, with the support of Department of Rural Industrial Development of Eastern Provincial Council, agreed to arrange all raw materials needed for the production up to the final product. Transportation of raw materials and final products

1.6.1.4 Coir Product Project at Batticaloa Prison – Batticaloa district

will also be done by the Batticaloa prison.

At the launch of the project, BEC provided Rs. 137,550 grant to cover the cost of raw materials and equipment needed for the production process. In addition, BEC provided Rs. 12,500 worth of training materials for initial training. The Prison Welfare Society will be mainly responsible for marketing the end product.

Moreover, through the skills derived from this activity, the inmates will be able to continue to engage in this cottage industry even after they are released from prison.

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The Berendina Employment Centre has initiated support for footwear manufacturing in the Murakottachenai GN Division (Kiran) in Batticaloa. The motive is to promote the concept of social business to create youth employment in the village and to gain job placements in the existing “Action Footwear Industry”. With the collaboration of World Vision (WV) and Kiran Divisional Development Vision Federation (KDDVF), BEC works as a social investor and facilitates services to improve the business under a social business model.

BEC and WV selected 10 youths from different GN divisions, particularly school drop outs. Berendina, with the support of WV and KDDVF,

1.6.1.5 Footwear manufacturing project in Batticaloa district

had discussions with the owner of Action Footwear Industry and agreed that the selected youths will be provided job placements, following the completion of training.

Berendina provided an interest free loan of Rs. 200,000 to “Action Footwear Industry” in order to purchase necessary equipment and raw materials needed to commence production. Young ladies who engaged with this have been able to earn a salary ranging from Rs. 4,000 – 6,000 monthly

Berendina has facilitated the necessary linkages between the local market and the Industrial Development Board to market products and further scale-up operations.

This project was implemented by partnering with differently-abled group of women organized by the Woman Development Center (WDC) in Kandy and ADMA Agro Company. Through this partnership, ADMA Company has agreed to purchase ready-made garments and some imitation jewelry handcrafted by the Womens group. BEC provided two sewing machines and have paid the cost of the first lot of raw materials

worth Rs. 106,102. To ensure the sustenance of the operation, this group was set up with a combination of both differently-abled and abled persons. The operation was started and the first order was provided in December. In addition, the group has also been trained to knit school uniforms and hence have succeeded in gaining a steady and continuous income throughout the year.

1.6.1.6 Linking Differently abled Group to provide readymade Garments and Jewelry for ADMA Agro Company in Nuwara-Eliya District

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The high prevalence of Chronic Kidney Disease (CKD) has been identified as one of the major health issues in Sri Lanka. This situation is more critical in the Northern, Central and Eastern regions of the country, largely due to the poor quality of water and other contributory factors. Approximately 5,000 farmers in North Central Province (NCP) in Sri Lanka die each year, as a result of Kidney failure (Chronic Kidney Disease). In addition, it is estimated that approximately 2.8 million people are at the risk of contracting this deadly disease.

A centrally purified pipe-borne water supply would be the definitive solution for this problem. However, to provide this facility to all the areas of North Central Province (NCP), takes a significantly longer time period and will be significantly expensive for the nation. Other than providing centrally purified pipe-borne water or clean water via Reverse Osmosis (RO) plants, there is no other sustainable way of providing clean water to the

1.6.2 Provision of quality drinking water

affected remote villages. This must also be done systematically and scientifically. There is a higher demand for filtered water throughout the NCP. As a result, government organizations, few NGOs and private organizations have assisted in establishing RO plants. Consequently, some individuals have also commenced RO plants as a business venture and ‘profit’ being their prime-motive behind the operation. Therefore, households are faced with constant difficulties due to the higher price they have to pay for drinking water and also the lack of a proper mechanism to measure and control the quality standards of water.

With the objective of providing safe drinking water to the community at a reasonable market price, BEC initiated 2 water purification plants as a social business in 2016. With the addition of these two plants (in addition to the two units installed in 2015) by the end of 2016, BEC has been able to provide purified water to about 1,600 families in Anuradhapura and Puttalam districts.

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This project, which started in 2015 as the first community water purification plant, was launched by partnering with Ekamuthu CBO by ensuring viability of purified water to at least 120 families in Wahagahapuwewa GN division in Kahatagasdigiliya, a Divisional Secretariat in Anuradhapura.

Presently, this project contributes towards the envisaged goals in a financially sustainable manner. Before the commencement of this project, people in the vicinity had to travel a distance of, as much as 16 Kilometers, to fetch drinking water. BEC assisted the Ekamuthu CBO by investing Rs. 1,182,320 to commence this plant. Rs. 540,000 of the total investment consisted of an interest-free loan while the remaining balance was structured through a grant. At present, close to around 100 families are being benefited through this project in the GN division. Price of a 1 Liter of purified water is being sold at a lower price of Rs. 1 to Rs. 1.50 at a time when the market price is however around Rs.3.00.

1.6.2.1 Water purification plant at Wahagahapuwewa GN division in Kahatagasdigiliya

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Partnering with the ‘Eksath Maranadara Samithiya’ (Village level CBO), the second ‘MANUDIYA SAVIYA’ water purification project in Kahatagasdigiliya was launched on the 14th of April 2016 in conjunction with the celebration of the New Year festival.

1.6.2.2 Water purification plant at Gagurewa GN division in Kahatagasdigiliya

This is a partnership project which involves HSBC as the main sponsor, and VOICE, the implementing partner. Total value of the project is around 4.8 million of which HSBC contributed Rs. 4 million through their CSR budget and the balance was provided from BEC and VOICE. Project approval was granted by the government by allocating government land to establish the project. The capacity of the plant is 10,000L/day. This project is expected to cover around 1,000 families living in Thibiriwawa GN divisions and

1.6.2.3 Drinking water project at Nochchiyagama

BEC assisted the CBO by investing Rs.1,189,547 to commence this plant. Rs.675,000 of the total investment consisted of an interest-free loan while the remaining balance was structured through a grant. This project benefitted around 132 families.

other adjoining areas. The income earned from this project is expected to be channeled towards providing medical allowance for CKD patients in the area. Moreover, plans are afoot to run an e-learning center in the same location. The cost of establishing such a venture is planned to be funded through the income earned from the project. Hence, this project will be able to effectively address many social issues in addition to the scarcity of water. This is the first social business initiative sponsored by HSBC.

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Chart 10 - Progress comparison of Social business activities in 2015 and 2016

In rural and plantation areas, children do not have proper facilities to study at home. Further, due to the economic hardships they experience, children have limited opportunities to improve their creative abilities and improve their confidence level. The Community Based Learning Centers (CBLC) established, provides a range of services and learning opportunities to school children and youth after school hours and creates a conducive environment for after school studies in close vicinity to houses of those students.

BEC started this program in 2014. CBLCs provide under-privileged children, who perform poorly

in school and are unable to afford any extra classes, to improve their studies through the aid of computer-based lessons. These lessons are aimed at students from grade 6 – 11.

Previously, there were four such centers and in 2016, BEC was able to establish 2 new centers in Anuradhapura. For this initiative, BEC partnered with Dharmavahani Foundation which develops the necessary education materials.

The project was undertaken in consultation with National Institute of Education, along with the approval of the Ministry of Education.

1.7 COMPUTER-BASED LEARNING CENTERS

8,000,0007,000,0006,000,0005,000,0004,000,0003,000,0002,000,0001,000,000

-

180016001400120010008006004002000

1700

925

---------

20162015Investment (Rs) No. of BeneficiariesYear

42


Table 8 - Details of CBL Centers

Location Number of Implementation students Organization

Karuwalagaswewa - Puttalam 15 VOICE

Pallama & AnamaduwaPuttalam 25 VOICE

Child Development Center, Galle 11 SUNFO

Thalawa, Anuradhapura 32 SOS

Anuradhapura 22 Children’s home Started in July 2016

Kekirawa 18 Rajarata Praja kendraya, Started in July 2016

Total 123

Tea Leaf Vision is a voluntary organization conducting professional diploma (English + Life Skills) to unemployed youth resident in plantation areas. They conduct courses free of charge with over 150 youths graduating annually.

During 2016, a Memorandum of Understanding between Tea Leaf Trust and Berendina Employment Center was signed to support

1.8 INSTITUTIONAL BUILDING GRANT FOR TEA LEAF VISIONTea Leaf Vision to achieve its strategies for the benefit of young people from Nuwara Eliya/Maskeliya region. Berendina provided a fund of LKR 2,000,000 to Tea Leaf Vision (TLV) in order to develop its institutional capacities by renovating their building and expanding its services by setting up Nuwara-Eliya branch. The fund was also utilized to develop staff capacities, by sending employees for advanced training programs.

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44


STAFF CAPACITY BUILDING


45


46

BEC’s active involvement is crucial in increasing staff knowledge and skills, improving work-based learning, continuing career guidance and counseling the youth. Having realized this, 16 officers of BEC were given the opportunity to

2.2 STAFF AND PARTNER CAPACITY BUILDING ON SOCIAL BUSINESS

A social business workshop was conducted for staff, existing partners and potential partners by partnering with SAP MBA sabbatical program.

Through this partnership project, BEC was able to gain the expertise of three international consultants free-of-charge. They assisted in developing social business models and increasing capacity of the staff to implement these models. This two-day workshop was conducted for the BEC staff, staff of existing partners and potential partners. Upon completion, BEC district managers have been able to identify potential village-level partners, with ease and precision. Moreover, the partner organizations which participated in the training have acquired a better understanding about the social business concept and their role as partner organizations in the social business work.

2.1 CAPACITY BUILDING ON CAREER GUIDANCE AND COUNSELING

participate in a two-day workshop on Career Guidance and Counseling conducted by the Sri Lanka Foundation. This provided a good opportunity for them to acquire necessary tools on career guidance and counseling.


With the objective of gaining wider knowledge on the concept of social business, the Manager In charge of Social business in BEC participated in a global social business workshop conducted by the ‘Hand In Hand’ in India. As an indirect opportunity resulting from this participation, HIH India came on tour to Sri Lanka and visited a few social business projects and have fundamentally agreed to implement their projects in partnership with Berendina in the future.

Yunus Social Business in India invited BEC to take part in the launching ceremony of Indian Cooperate Action Tank and Bangalore Social Business Fund. The Manager in charge of Social business of BEC participated at this event in which Professor Yunus was the Chief Guest. This provided a good opportunity for BEC to share and learn from the international experience, while acquiring knowledge on world-class innovations in the social business field.

2.3 PARTICIPATION IN TWO INTERNATIONAL WORKSHOPS

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48


FINANCIAL STATEMENTS

49


50


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BERENDINA EMPLOYMENT CENTER (GTE) LTD | ANNUAL REPORT | 2016Berendina Employment Center (Guarantee) LimitedSTATEMENT OF COMPREHENSIVE INCOMEYear ended 31 December 2016

Notes 2016 2015Rs. Rs.

INCOMEGrants Income 3 58,696,204 53,360,469 Other Income 4 5,148,830 693,459 Total Income 63,845,034 54,053,928

LESS:Program Expenses 5 56,684,319 43,157,273 Personnel Expenses 6 4,345,702 5,216,810 Depreciation of Property, Plant & Equipment 10 249,334 1,186,787 Other Operating Expenses 7 2,206,688 2,090,728 Bank Charges 8 36,911 52,860

63,522,954 51,704,458

Net Surplus/(Deficit) for the Year Before Income Tax 322,080 2,349,470

Income Tax Expense 9 553,931 467,574

Net Surplus/(Deficit) for the Year (231,851) 1,881,896

Accumulated Surplus at the start of the year 1,881,896 -

Accumulated Surplus at the end of the year 1,650,045 1,881,896

The Accounting Policies and notes on pages 6 to 15 form an integral part of the Financial Statements.

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BERENDINA EMPLOYMENT CENTER (GTE) LTD | ANNUAL REPORT | 2016Berendina Employment Center (Guarantee) LimitedSTATEMENT OF CASH FLOWSYear ended 31 December 2016

Notes 2016 2015Rs. Rs.

Cash Flow from Project Activities

Net Surplus/(Deficit) Before Tax 322,080 2,349,470 Adjustments for:

Depreciation of Property, Plant & Equipment 10 249,334 1,186,787 Finance Expenses 8 36,911 52,860 Defined Benefit Plan Cost - Gratuity 15 1,370,090 - Gain on Disposal of Fixed Assets (4,040,000) -

Operating Profit Before Working Capital Changes (2,061,585) 3,589,117

(Increase)/Decrease in Advances & Prepayments 11 (974,264) (2,034,351) Increase/(Decrease) in Accrued Expenses 16 (2,589,222) 4,210,562 Increase/(Decrease) in Other Payables 17 3,985,217 614,442 Cash Generated from Operations (1,639,854) 6,379,770

Finance Cost Paid (36,911) (52,860) Tax Paid (514,705) - Net Cash Flows from Operating Activities (2,191,470) 6,326,910

Investing ActivitiesAcquisition of Property, Plant & Equipment 10 (235,491) (1,747,301) Proceeds from disposal of Property Plant and Equipment 4,040,000 - Net Cash Flow from/(Used in) Investing Activities 3,804,509 (1,747,301)

Financing ActivitiesSocial Business Fund 759,400 150,200 Net Cash Flow from Financing Activities 759,400 150,200

Net Increase in Cash & Cash Equivalents 2,372,439 4,729,809

Cash & Cash Equivalent at the Beginning of the Year 4,729,809 -

Cash & Cash Equivalents at the End of the Year 12 7,102,248 4,729,809


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BERENDINA EMPLOYMENT CENTER (GTE) LTD | ANNUAL REPORT | 2016Berendina Employment Center (Guarantee) LimitedNOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2016

3. RECEIPT FROM GRANTS 2016 2015Rs. Rs.

Berendina Stichting 58,349,004 19,225,000 Berendina Development Services (Gte) Ltd. - 31,329,258 Deutsche Bank - 963,198 Employee Contribution for BSS Program 347,200 241,650 Give 2 Sri Lanka Project - 1,601,363

58,696,204 53,360,469

4. OTHER INCOME 2016 2015Rs. Rs.

Income from Job Placements 545,240 606,504 Interest Income 561,128 86,955 Gain on Sale of Motor Vehicle 4,040,000 - Miscellaneous Income 2,462 -

5,148,830 693,459

2016 20155. PROGRAM EXPENSES Rs. Rs.

Vocational Training Scholarships 11,965,986 9,115,710 Job Links/Referrals 2,065,564 1,794,112 Career Guidance and Counselling 1,336,748 1,185,161 Institutional Support for VT Centers 296,710 320,800 Follow-up Session on VT Scholarships 95,475 552,433 Social Businesses 2,866,913 2,316,661 Bright Student Scholarships 15,525,723 6,610,369 Computer Based Learning Center 319,698 230,944 Tea Leaf Foundation 2,000,000 - Fund Raising 190,963 6,169,791 Program Staff Costs 13,726,435 10,911,400 Program Related Travelling & Subsistence 3,033,381 1,307,493 Program Related Admin Expenses 3,260,723 2,642,399

56,684,319 43,157,273

6. PERSONNEL EXPENSES 2016 2015Rs. Rs.

Salaries & Other Benefits 3,958,347 5,216,810 Defined Benefit Plan-Gratuity 387,355 -

4,345,702 5,216,810

7. OTHER OPERATING EXPENSES 2016 2015Rs. Rs.

Office Administration Expenses 1,073,546 1,761,670 Professional & Consultancy Fees 114,392 11,549 Audit Fees 63,250 61,050 Loan Write-off given to Co-op Society 780,000 - Sundry Expenses 175,500 256,459

2,206,688 2,090,728 -11-

55


56

Berendina Employment Center (Guarantee) LimitedNOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2016



58,696,204 53,360,469



5,148,830 693,459



56,684,319 43,157,273



4,345,702 5,216,810



2,206,688 2,090,728 -11-




58,696,204 53,360,469



5,148,830 693,459



56,684,319 43,157,273



4,345,702 5,216,810



2,206,688 2,090,728 -11-

57


58




58,696,204 53,360,469



5,148,830 693,459



56,684,319 43,157,273



4,345,702 5,216,810



2,206,688 2,090,728 -11-




58,696,204 53,360,469



5,148,830 693,459



56,684,319 43,157,273



4,345,702 5,216,810



2,206,688 2,090,728 -11-

59




58,696,204 53,360,469



5,148,830 693,459



56,684,319 43,157,273



4,345,702 5,216,810



2,206,688 2,090,728 -11-

60


8. BANK CHARGES 2016 2015Rs. Rs.

Bank Charges 36,911 52,860 36,911 52,860

9. INCOME TAX EXPENSE 2016 2015Rs. Rs.

Total Funds Received as Grants, Donations and Contributions 58,696,204 53,360,469

3% of Donations so Received 1,760,886 1,600,814

NGO Tax Liability for the Year @ 28% 493,048 448,228

Tax on Other Sources of Income 60,883 19,346

Tax Expense for the Year 553,931 467,574

Total Tax Expenses 553,931 467,574

9.1 Applicable Rates of Tax and the Relevant Tax Regimes

As per the Inland Revenue Act No. 10 of 2006 and amendments thereon, all Non Governmental Organizations' are liable to3% on all the grants received during the year, which are taxable at 28% subject to certain specified exemptions.

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62


10. PROPERTY, PLANT & EQUIPMENTS

10.1 2016 (Current Year) Office

Equipments Motor

Vehicles Computer

Equipments Furniture & Fittings Total

Cost Rs. Rs. Rs. Rs. Rs.

Balance as at 01.01.2016 32,486 979,167 423,223 312,425 1,747,301 Additions 31,095 92,100 112,296 235,491 Disposals 979,167 979,167 As at 31 December 2016 63,581 - 515,323 424,721 1,003,625

Less: Accumulated Depreciation

Balance as at 01.01.2016 4,932 979,167 118,830 83,858 1,186,787 Charge for the Year 9,227 - 138,285 101,822 249,334 Disposals - 979,167 - - 979,167 As at 31 December 2016 14,159 - 257,115 185,680 456,954

Net Book Value as at 31 December 2016 49,422 - 258,208 239,041 546,671

10.2 2015 (Previous Year) Office

Equipments Motor

Vehicles Computer

Equipments Furniture & Fittings Total

Cost Rs. Rs. Rs. Rs. Rs.Balance as at 01.01.2015 - Additions 32,486 979,167 423,223 312,425 1,747,301 Disposals - As at 31 December 2015 32,486 979,167 423,223 312,425 1,747,301

Less: Accumulated Depreciation

Balance as at 01.01.2015 - Charge for the Year 4,932 979,167 118,830 83,858 1,186,787 Disposals - - As at 31 December 2015 4,932 979,167 118,830 83,858 1,186,787

Net Book Value as at 31 December 2015 27,554 - 304,393 228,567 560,514

10.3 During the financial year, the company acquired Property, Plant and Equipment to the aggregate value of Rs. 235,491/- forthe financial year ended 31 December 2016 (2015 - Rs. 1,186,787/-). The cost of the fully depreciated assets were Rs.663,476/- for the year ended 31 December 2016. (2015 - Rs. 5,138,043/-). The cost of the disposed motor vehicle was Rs.4,700,000/-

-13-


11. ADVANCES & PREPAYMENTS 2016 2015Rs. Rs.

Staff Loans 1,963,450 - Advance Account 101,600 143,408 Co-op Society 348,500 1,145,000 Pre paid Rent 240,300 482,050 Pre Paid Insurance 249,915 262,393 Refundable Deposits/Other Receivables 104,850 1,500

3,008,615 2,034,351

12. CASH AND CASH EQUIVALENTS 2016 2015Rs. Rs.

Petty Cash 40,000 40,000 Bank Balances 3,433,128 98,873 Short Term Investments - less than 3 months 3,629,121 4,590,936 Cash & Cash Equivalents for the Purpose of Statement of Cash Flows 7,102,249 4,729,809

13. ACCUMULATED SURPLUS 2016 2015Rs. Rs.

Balance as at 01 January 2016 1,881,896 -

Surplus/(Deficit) for the Year (231,851) 1,881,896

Balance as at 31 December 2016 1,650,045 1,881,896

14. SOCIAL BUSINESS FUND 2016 2015Rs. Rs.

Balance as at 01 January 2016 150,200 -

Provision Made During the Period 759,400 150,200 Payments Made During the Period - -

Balance as at 31 December 2016 909,600 150,200

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63


15. RETIREMENT BENEFIT OBLIGATION - GRATUITY 2016 2015Rs. Rs.

Balance as at 01 January 2016 - - Inter Company Transfers 982,735 Provision Made During the Period 387,355 - Payments Made During the Period - - Balance as at 31 December 2016 1,370,090 -

16. ACCRUED EXPENSES 2016 2015Rs. Rs.

Motor Cycle Mileage Fund 196,002 150,826 Accrued Expenses 1,109,483 3,998,686 Audit Fee Payable 63,250 61,050 EPF/ETF Payables 247,579 - PAYE Payable 3,826 - Stamp Duty Payable 1,200 -

1,621,340 4,210,562

17. OTHER PAYABLES 2016 2015Rs. Rs.

Berendina Development Services (Gte) Ltd 4,373,343 - Berendina Microfinance Institute (Gte) Ltd 193,836 484,891 Berendina Micro Investment Company Ltd 32,480 129,551

4,599,659 614,442

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