You have been recently engaged as the Chief Executive Officer (CEO) of a microfinance Institution (MFI)....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
You have been recently engaged as the Chief Executive Officer (CEO) of a microfinance Institution (MFI). You are expected to do a presentation to the board of the directors of the MFI on the financial health and performance of the institution. You found the need to explain The relevant concepts used for the evaluation of MFIs in order to facilitate the appreciation of The issues by your audience. The content of the presentation shall form the basis of the Strategic plan currently being considered. (Use the data the provided in excel in the column Assigned to your index number). You are required to: a) Provide an assessment of the financial health and performance of the MFI using the data Extracts from income statements and balance sheet of the microfinance institution (MFI) that Have assigned to you. (35 Marks) based on your analysis which will be used for the crafting of the b) Make recommendations Strategic plan for the MFI. ASSETS Cash on hand Balances in current accounts with bank/Fin Inst (Schedule A) Balances in savings account with banks/Fin inst Money on call with banks/fin inst Placement with banks/fin inst (Schedule B) Cash and Short term funds (sum 1 to 5) GOG/BOG Securities (Schedule B) Loans and Advances (net) (Schedule C) Other Assets (Schedule D) Property, Plant and Equipment (net) Total Assets CAPITAL AND LIABILITIES Paid up capital Redeemable Preference Shares Reserves OWN FUNDS/SHAREHOLDERS' FUNDS Borrowings (Schedule E) Deposits from the public (Schedule F) 52,175.90 589,128.46 0.00 0.00 600,287.06 1,241,591.42 0.00 6,429,379.50 30,369.96 430,991.32 8,132,332.20 2,086,000.00 0.00 3,384,040.59 5,470,040.59 279,950.00 1,831,778.07 Other Liabilities (Schedule G) Total Liabilities Shareholders' Funds and Total Liabilities Net Difference (A-B) Short Term Investments (4+5+7) Earning Assets (3+4+5+7+8) Interest Bearing Liability (15+16) Percentage Share of Total Assets Percentage Share of Total Loan & Advances Percentage Share of Total Short Term Investment Percentage Share of Total Deposits Percentage Share of Total Borrowings Percentage Share of Total Share Capital Percentage Share of Total Reserves Advances to Deposits Ratio Advances to Borrowings Ratio Short Term Investments To Deposits Ratio Short Term Investments To Borrowings Ratio Advances to Total Share Capital Ratio Short Term Investments To Total Share Capital Ratio Advances To Total Assets Ratio Short Term Investments To Total Assets Ratio CAR (%) NPL 550,563.54 2,662,291.61 8,132,332.20 600,287.06 7,029,666.56 2,111,728.07 350.99% 2296.62% 32.77% 214.43% 308.22% 28.78% 79.06% 7.38% 77% 0.00 INCOME / EXPENSE Interest on loans assets received (Schedule A) Interest on investments received (Schedule B) Interest income (1+2) Interest expense (Schedule C) Net interest income (3-4) Other operating income (Schedule D) Total Operating Income (5+6) Operating cost (Schedule E) Net Operating Income (7-8) Risk provisions (including charge offs) Operaing profit/loss (9-10) Non-operating income/loss (Schedule F) Total income (7+12) Profit before tax/operating loss (11+12) Provision for tax Net Income (14-15) 154,633.97 142.30 154,776.27 22,893.50 131,882.77 27,267.48 159,150.25 115,281.56 43,868.69 0.00 43,868.69 0.00 159,150.25 43,868.69 0.00 43,868.69 You have been recently engaged as the Chief Executive Officer (CEO) of a microfinance Institution (MFI). You are expected to do a presentation to the board of the directors of the MFI on the financial health and performance of the institution. You found the need to explain The relevant concepts used for the evaluation of MFIs in order to facilitate the appreciation of The issues by your audience. The content of the presentation shall form the basis of the Strategic plan currently being considered. (Use the data the provided in excel in the column Assigned to your index number). You are required to: a) Provide an assessment of the financial health and performance of the MFI using the data Extracts from income statements and balance sheet of the microfinance institution (MFI) that Have assigned to you. (35 Marks) based on your analysis which will be used for the crafting of the b) Make recommendations Strategic plan for the MFI. ASSETS Cash on hand Balances in current accounts with bank/Fin Inst (Schedule A) Balances in savings account with banks/Fin inst Money on call with banks/fin inst Placement with banks/fin inst (Schedule B) Cash and Short term funds (sum 1 to 5) GOG/BOG Securities (Schedule B) Loans and Advances (net) (Schedule C) Other Assets (Schedule D) Property, Plant and Equipment (net) Total Assets CAPITAL AND LIABILITIES Paid up capital Redeemable Preference Shares Reserves OWN FUNDS/SHAREHOLDERS' FUNDS Borrowings (Schedule E) Deposits from the public (Schedule F) 52,175.90 589,128.46 0.00 0.00 600,287.06 1,241,591.42 0.00 6,429,379.50 30,369.96 430,991.32 8,132,332.20 2,086,000.00 0.00 3,384,040.59 5,470,040.59 279,950.00 1,831,778.07 Other Liabilities (Schedule G) Total Liabilities Shareholders' Funds and Total Liabilities Net Difference (A-B) Short Term Investments (4+5+7) Earning Assets (3+4+5+7+8) Interest Bearing Liability (15+16) Percentage Share of Total Assets Percentage Share of Total Loan & Advances Percentage Share of Total Short Term Investment Percentage Share of Total Deposits Percentage Share of Total Borrowings Percentage Share of Total Share Capital Percentage Share of Total Reserves Advances to Deposits Ratio Advances to Borrowings Ratio Short Term Investments To Deposits Ratio Short Term Investments To Borrowings Ratio Advances to Total Share Capital Ratio Short Term Investments To Total Share Capital Ratio Advances To Total Assets Ratio Short Term Investments To Total Assets Ratio CAR (%) NPL 550,563.54 2,662,291.61 8,132,332.20 600,287.06 7,029,666.56 2,111,728.07 350.99% 2296.62% 32.77% 214.43% 308.22% 28.78% 79.06% 7.38% 77% 0.00 INCOME / EXPENSE Interest on loans assets received (Schedule A) Interest on investments received (Schedule B) Interest income (1+2) Interest expense (Schedule C) Net interest income (3-4) Other operating income (Schedule D) Total Operating Income (5+6) Operating cost (Schedule E) Net Operating Income (7-8) Risk provisions (including charge offs) Operaing profit/loss (9-10) Non-operating income/loss (Schedule F) Total income (7+12) Profit before tax/operating loss (11+12) Provision for tax Net Income (14-15) 154,633.97 142.30 154,776.27 22,893.50 131,882.77 27,267.48 159,150.25 115,281.56 43,868.69 0.00 43,868.69 0.00 159,150.25 43,868.69 0.00 43,868.69
Expert Answer:
Answer rating: 100% (QA)
A range of profitability ratios will clearly indicate how successful a microfinance institution is f... View the full answer
Related Book For
Elementary Statistics
ISBN: 978-0538733502
11th edition
Authors: Robert R. Johnson, Patricia J. Kuby
Posted Date:
Students also viewed these accounting questions
-
The chief executive officer of Creative Toys, Inc. read about cooperation in Japanese companies and vowed to bring the same philosophy to the company. The goal is to avoid all conflict so that...
-
The chief executive officer of Creative Toys, Inc. read about cooperation in Japanese companies and vowed to bring this same philosophy to the company. The goal is to avoid all conflict, so that...
-
In a recent annual report the chief executive officer of Kimberly-Clark outlined his plans as follows: We have four reportable global business segments: Personal Care, Consumer Tissue, K-C...
-
At Acme Corp., the firm's senior managers approach marketing implementation with the belief that marketing strategy should be developed at the top of the organization and then transmitted to lower...
-
In a Poisson distribution m 5 4. a. What is the probability that x 5 2? b. What is the probability that x # 2? c. What is the probability that x . 2?
-
A single-server queue has random arrivals at a rate of 30 an hour and random service times at a rate of 40 an hour. If it costs 20 for each hour a customer spends in the system and 40 for each hour...
-
Billing schemes are frauds in which an employee causes the victim organization to issue fraudulent payments by submitting invoices for nonexistent goods or services, inflated invoices, or invoices...
-
Wynn Company has recorded the following items in its financial records. Cash in bank ..........................................$ 42,000 Cash in plant expansion fund ............. 100,000 Cash on hand...
-
A balance sheet showing the starting conditions before equity issuance: Assets Liabilities and Net Worth Cash $100 $60 Debt Operating Assets $100 $140 Equity 100 outstanding shares at $1.40 per share...
-
The Irwin Batting Company manufactures wood baseball bats. Irwin's two primary products are a youth bat, designed for children and young teens, and an adult bat, designed for high school and...
-
Joyce asks individuals leaving a gym how many times a week they tend to exercise at the gym. She finds that on average, her participants exercise 3.67 times a week (SD = 2.00), 95% CI [1.44, 5.90]....
-
True or false? If inventory obsolescence is very high in a given year, FFO will most likely be larger than CGO.
-
Name a couple of industries that could potentially benefit from shifting focus the way Zara did.
-
Damon Telecom is designing a new workhorse satellite to eventually replace all the orbital satellites it manages in its telecommunication network. The design of this satellite consists of five...
-
In some stem-and-leaf displays with one or two unusually low values, the first stem is often written as LOW, with the complete values in the leaf section. Why and when might we do this?
-
If a sampling plan used a sample size of n = 100 for batches of N = 1,000 units with a 58.3% chance of accepting batches that have an actual proportion defective of p = 10%, what AOQ would result...
-
Look at the following FEMA website for recovery grants. Report back something that you found useful in the related links to this website as far as getting help from FEMA to recover from or prepare...
-
Show that the peak of the black body spectrum as a function of ? is given by eq. (22.14) kg T Wmax = 2.82
-
A random sample of 81 female American college students were each issued a stopwatch and asked to time themselves as they prepared to attend class on the following Thursday morning. The instructions...
-
a. Draw a histogram of the probability distribution for the single-digit random numbers 0, 1, 2, . . . , 9. b. Calculate the mean and standard deviation associated with the population of single-digit...
-
To test the hypothesis that the standard deviation on a standard test is 12, a sample of 40 randomly selected students exams was tested. The sample variance was found to be 155. Does this sample...
-
Tracy Company reports the following amounts in its annual financial statements: a. Compute Tracy's free cash flow. b. Compute Tracy's operating-cash-flow-to-current-liabilities ratio. c. Compute...
-
Review each of the following items, a through \(f\), and determine whether the item supports a (1) production view of quality or a (2) customer view of quality. a. Applying management-by-exception...
-
During the year, Paton Corporation's Long-Term Investments account (at cost) increased \(\$ 20,000\), the net result of purchasing stocks costing \(\$ 85,000\) and selling stocks costing \(\$...
Study smarter with the SolutionInn App