Audit report Sunrise 2004 final

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Description

MIKRO KREDITNA ORGANIZACIJA SUNRISE SARAJEVO Financial statements for the years ended 31 December 2004 and 2003 together with Independent auditors’ report Contents Page Responsibility fo Financial Statements 1 Independent Auditors’ Report 2 Financial Statements: Income Statements 3 Balance Sheets 4 Statements of Cash Flows 5 Statements of Changes in Net Assets 6 Notes to the Financial Statements 7 – 23 ƒƒƒƒ Responsibility for Financial Statements Pursuant to the Accounting Law of Federation of Bosnia and Herzegovina (FBiH) (“Official Gazette of Federation of Bosnia and Herzegovina” 2/95 and 12/98), Management is responsible for ensuring that financial statements are prepared for each financial year in accordance with International Financial Reporting Standards (IFRS) as published by the International Accounting Standards Board (IASB) which give a true and fair view of the state of affairs and results of the company and the group for that period. After making enquiries, Management has a reasonable expectation that the Organisation has adequate resources to continue in operational existence for the foreseeable future and continues to adopt the going concern basis in preparing the financial statements. In preparing those financial statements, the responsibilities of Management include ensuring that: suitable accounting policies are selected and then applied consistently ...

Informations

• Publié par: Vuwyung
• Nombre de lectures: 15
• Langue: English

Extrait

      MIKRO KREDITNA ORGANIZACIJA

SUNRISE SARAJEVO 

Financial statements for the years ended

31 December 2004 and 2003

together with Independent auditors report

 

 

 

 

Contents

 

   

 

      Responsibility fo Financial Statements   Independent Auditors Report   Financial Statements:   Income Statements   Balance Sheets   Statements of Cash Flows   Statements of Changes in Net Assets   Notes to the Financial Statements

     

 

   

 

Page     1   2     3   4   5   6   7  23

 

 

 

 

  Responsibility for Financial Statements Pursuant to the Accounting Law of Federation of Bosnia and Herzegovina (FBiH) (Official Gazette of Federation of Bosnia and Herzegovina 2/95 and 12/98), Management is responsible for ensuring that financial statements are prepared for each financial year in accordance with International Financial Reporting Standards (IFRS) as published by the International Accounting Standards Board (IASB) which give a true and fair view of the state of affairs and results of the company and the group for that period. After making enquiries, Management has a reasonable expectation that the Organisation has adequate resources to continue in operational existence for the foreseeable future and continues to adopt the going concern basis in preparing the financial statements. In preparing those financial statements, the responsibilities of Management include ensuring that: ƒ suitable accounting policies are selected and then applied consistently; ƒ and estimates are reasonable and prudent; judgements ƒ applicableaccounting standards are followed, subject to any material departures disclosed and  explained in the financial statements; and ƒ the financial statements are prepared on the going concern basis unless it is inappropriate to presume that the company will continue in business. Management is responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the financial position of the Organisation and must also ensure that the financial statements comply with the Accounting Law of Federation of Bosnia and Herzegovina. Management is also responsible for safeguarding the assets of the Organisation and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Signed on behalf of Management Mirsad Milavic, General manager Mikro kreditna organizacija Sunrise Sarajevo Envera Sehovica 16A 71 000 Sarajevo Bosnia and Herzegovina 26 January 2005  

 

 

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      Independent Auditors Report

 

To the Board of Directors of Mikro kredtina organizacija Sunrise Sarajevo: We have audited the accompanying balance sheets of MKO Sunrise Sarajevo (the Organisation) as of 31 December 2004 and 2003 and the related statements of income, cash flows and changes in net assets for the years then ended. These financial statements are the responsibility of the Organisations Management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audits in accordance with International Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by Management, as well as evaluating the overall financial statement presentation. We believe that our audits provides a reasonable basis for our opinion.

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Organisation as of 31 December 2004 and 2003 and of the results of its operations, cash flows, and changes in net assets for the years then ended, in accordance with International Financial Reporting Standards.

Deloitte d.o.o.   Sarajevo, 26 January 2005          

 

  Mikro kreditna organizacija Sunrise Sarajevo Income statements for the years ended 31 December 2004 and 2003 (in KM)            ote 2004 2003 N             Interest and commission income 4 5,191,879 4,061,779 Interest expense 5 (530,395) (354,171) Net interest and commission income   4,661,484 3,707,608       Operating expenses 6 (3,294,085) (2,485,137) Other operating income 7   15,717 10,559 Other operating expenses 8 (4,145) (4,116) Net operating expenses (3,282,513) (2,478,694)       NET INCOME BEFORE PROVISIONS FOR LOAN IMPAIRMENT   1,378,971 1,228,914    PROVISIONS FOR LOAN IMPAIRMENT12,13(241,407) (251,321)      NET OPERATING INCOME   1,137,564 977,593    DONATIONS916,223 613,691    EXCESS OF INCOME OVER EXPENDITURES (NET RESULT)   1,153,787 1,591,284   The accompanying notes are an integral part of these Financial statements.    3  

Mikro kreditna organizacija Sunrise Sarajevo Balance sheets as of 31 December 2004 and 2003 (in KM)            ote 2004 N ASSETS      Cash and cash equivalents 10 262,804 Bank deposits 11 200,000 Loans to clients, net 12 18,160,132 Other assets 13 32,736 Property, plant and equipment 14 1,155,894     TOTAL ASSETS   19,811,566        LIABILITIES       Bank loans 15 2,991,000 Subsidised loans 16 9,889,409 Other liabilities 17 113,634 Total Liabilities   12,994,043            NET ASSETS      Net assets 5,663,736 Excess of income over expenditure 1,153,787 Total Net Assets   6,817,523       TOTAL LIABILITIES AND NET ASSETS   19,811,566   The accompanying notes are an integral part of these Financial statements.     Signed on behalf of Mikro kreditna organizacija Sunrise Sarajevo on 26 January 2005.   Mirsad Milavić eelj Milan   General manager Deputy General Manager and Executive Manager    

 

  2003   419,115   - 13,303,227 3,105 1,135,702 14,861,149     1,111,000 7,929,020 157,393 9,197,413     4,072,452 1,591,284 5,663,736 14,861,149

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Mikro kreditna organizacija Sunrise Sarajevo Cash flow statements for the years ended 31 December 2004 and 2003 (in KM)    

   2004    Operating Activities Net result 1,153,787 Adjustments to reconcile net income to net cash used in operating activities   Depreciation 114,046 Loss upon disposal of property, plant and equipment 3,323 Net increase in provisions for possible loan impairment 106,923 Net increase (decrease) in provision for interest receivable (6,669) Changes in operating assets and liabilities    Net increase in other assets (29,631) Net (decrease) increase in other liabilities (43,759)    NET CASH PROVIDED BY OPERATING ACTIVITIES 1,298,020     Investing Activities   Purchase of property, plant and equipment (137,561) Net increase in loans given (4,957,159) Net increase in interests receivable for loans (26,785)   Increase in bank deposits (200,000)     NET CASH USED IN INVESTING ACTIVITIES (5,294,720)    Financing Activities     Net increase in bank loans 1,880,000 Net increase in subsidised loans 1,960,389    NET CASH PROVIDED BY FINANCING ACTIVITIES 3,840,389 NET (DECREASE) IN CASH AND CASH EQUIVALENTS (156,311) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 419,115    CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR   262,804   The accompanying notes are an integral part of these Financial statements.  

 

  2003   1,591,284   104,617 2,855 99,097 10,153   (2,585) 51,999 1,857,420   (98,852) (3,506,735) (33,477) -   (3,639,064)   704,286 798,222 1,502,508 (279,136) 698,251 419,115

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Mikro kreditna organizacija Sunrise Sarajevo Statements of changes in net assets for the years ended 31 December 2004 and 2003 (in KM)

 

Excess of income Net assets over expenditures   2,099,796 1,972,656   1,972,656 (1,972,656)   - 1,591,284   4,072,452 1,591,284   1,591,284 (1,591,284)   - 1,153,787   5,663,736 1,153,787

    Balance at 31 December 2002   Result for the previous year Net result for the year Balance at 31 December 2003 Result for the previous year Net result for the year   Balance at 31 December   2004     The accompanying notes are an integral part of these Financial statements.      

 

               

Total 4,072,452 -   1,591,284 5,663,736 -   1,153,787 6,817,523

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Mikro kreditna organizacija Sunrise Sarajevo Statements of changes in net assets for the years ended 31 December 2004 and 2003 (in KM)   1. GENERAL Sunrise is a non-profitable organisation, which started its operations in April 1997 as a humanitarian organisation. In accordance with the Law on Micro Credit Organisations (Official Gazette of the Federation of Bosnia and Herzegovina 24/00), the Organisation was re-registered in the Register of micro credit organisations with the Ministry of Social Affairs, Displaced Persons and Refugees, under the registration number R1M-4/00 of 14 December 2000. Registration is undertaken based on Contract with Foundation ODRAZ, Local initiative project, dated 08 May 2000, stating that Foundation ODRAZ provides Organisation with the fund for micro-crediting in the amount of KM 4,222,551. Simultaneously, based on the decision issued by the Ministry number 05-4-35-179/00 from December 2000, the Humanitarian Organization Sunrise ceased to exist. On 1 January 2001 all the rights and obligations were transferred from Humanitarian Organisation Sunrise to a newly registered micro credit organisation Sunrise.

The executive office of the Organisation is in Sarajevo, Envera ehovića 16A. The principal activity is the implementation of a micro credit programme, primarily for manufacturing, trade, services and agriculture. A target group (clients) of the Organisation are all legal entities and individuals with relatively low level of income, who use micro credits to implement their business ideas for self-financing and self-employment.

Bodies of the Organisation

Board of Directors :

Nihad Imamović  Dafer Prevljak Milorad Krunić   Fejsal Hrustanović    Boris Tihi Husein Morankić    Saa Vujić    Aida Soko Esad ahinagić    

Audit Committee

Haladin Salihović  Ugljea Kisić    Anis Aganović    

 

 

   

Chairman Deputy chairman Member Member Member Member Member Member Member

Chairman Member Member

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Mikro kreditna organizacija Sunrise Sarajevo Statements of changes in net assets for the years ended 31 December 2004 and 2003 (in KM) Management:

Terezije bb

Rustempaina 88

Ante Starčevića bb Pere Bilića 37 Josipa bana Jelačića bb Marala Tita bb Mostarskih bataljona 25a Ante Starčevića bb

Mirsad Milavić Manager General Milan eelj Deputy General Manager and Executive Manager Jasminka Milavić of Credit Department Head Zoran Dučić Head of General Department GordanaČengić of Finance Department Head Igor Akulović Head of IT Department Nermin emić of Legal Department Head   The Organisation operates through its Executive office in Sarajevo, Envera ehovića 16A and 28 regional offices, divided in 6 regions: Sarajevo 1 Sarajevo   Sarajevo 2 Sarajevo   Mostar Čapljina Jablanica Kiseljak Konjic Mostar Mostar   Zenica Breza Kakanj Kladanj Olovo Visoko Zenica   Doboj Derventa Doboj Matuzići Maglaj Modriča Oraje epče           Bugojno  

Bosanskih namjesnika 7 Zgoćanska 26 Branilaca BiH 1 Radnička bb Čarijska 4 Masarikova 35

Kralja Petra I Kralja Aleksandra 51 Matuzići bb Trni centar bb Svetosavska bb Peta ulica 20 Abdulvehab Ilhamija 30

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Mikro kreditna organizacija Sunrise Sarajevo Statements of changes in net assets for the years ended 31 December 2004 and 2003 (in KM) Bugojno Sultan Ahmedova 70 Drvar Kralja Tomislava 38 Jajce Hrvoja Vukčića Hrvatinića Ključ Branilaca BiH Sanski Most Ključka 6 Travnik Trni centar Zenjak 7 Vitez Kulina bana bb   1.1 PERFORMANCE INDICATORS   Efficiency Ratios 2004 2003     Active clients / Number of staff 123 119 Active clients / Number of loan officers 187 173 Net outstanding portfolio / Number of loan officers 327,025 313,400 Percentage total operating expenses / Average net portfolio 21.15 21.69   Financial Ratios  2004 2003  % %     Return on assets: Net operating income / total assets 6.56 7.36 Return on equity: Net operating income / total equity 18.48 20.08 Yield on portfolio: Interest income / average net portfolio outstanding 33 35.44   2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies adopted in the preparation of these financial statements are set out below:

2.1 BASIS FOR PRESENTATION These financial statements are prepared in accordance with International Financial Reporting Standards (IFRS), under the historical cost convention, as modified by the revaluation of appropriate financial assets and liabilities.

These financial statements are presented in the official currency of Bosnia and Herzegovina, the Convertible mark (KM), which is officially pegged to Euro (EUR 1 = KM 1.95583). The preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions that effect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and their reported amounts of revenues and expenses during the reporting period. These estimates are based on the information available as of the date of the financial statements and actual results could differ from those estimates.

 

 

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