AUDIT REPORT FY 07-FY08

Chiara

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EMPOWERMENT MICRO FINANCE INSTITUTION Ltd AUDITED FINANCIAL STATEMENTS st Period ended 31 March 2008 JMC JM Chisanga and Company Chartered Public Accountants Empowerment Micro Finance Institution Limited Period ended 31st March 2008 CONTENTS PAGE Auditor's Report 1 - 2 Trustees' Responsibilites 3 Balance Sheet 4 Notes to the Financial Statements 5 - 8 Detailed Income Statement 9 Empowerment Micro Finance Institution Limited Period ended 31st March 2008 STATEMENTS OF THE BOARD OF MANAGEMENT TRUSTEE'S RESPONSIBILITIES 1 The Board Members are required to ensure that Financial Statements for each financial year are prepared which give a true and fair view of the state of affairs of the funds and of the excess of deficit of income and expenditure for the period. In preparing those Financial Statements the Members are required to:- a) select suitable accounting policies and then apply them consistently; b) make judgments and estimates that are reasonable and prudent; c) state whether applicable accounting standards have been followed, and d) prepare the ...

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• Publié par: Loruj
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EMPOWERMENT  MICRO FINANCE INSTITUTION Ltd

 AUDITED FINANCIAL STATEMENTS st  Period ended 31 March 2008

JMC

JM Chisanga and Company  Chartered Public Accountants

Empowerment Micro Finance Institution Limited Period ended 31st March 2008 CONTENTS  Auditor's Report  Trustees' Responsibilites  Balance Sheet  Notes to the Financial Statements  Detailed Income Statement

PAGE 1 - 2 3 4 5 - 8 9

Empowerment Micro Finance Institution Limited Period ended 31st March 2008 STATEMENTS OF THE BOARD OF MANAGEMENT TRUSTEE'S RESPONSIBILITIES 1The Board Members are required to ensure that Financial Statements for each financial  year are prepared which give a true and fair view of the state of affairs of the funds and  of the excess of deficit of income and expenditure for the period. In preparing those  Financial Statements the Members are required to:-  a) select suitable accounting policies and then apply them consistently;  b) make judgments and estimates that are reasonable and prudent;  c) state whether applicable accounting standards have been followed, and  d) prepare the Financial Statements on the going concern basis unless it is  inappropriate to presume that the Project will continue with its activities. 2The Board Members are responsible for the keeping of proper accounting records which  disclose with reasonable accuracy at any time the financial position of the project and  enable them to ensure that the Financial Statements comply with the Companies Act. They  are also responsible for safe guarding the assets of the project and hence for taking  reasonable steps for the prevention and detection of fraud and other irregularities.

3The Board Members confirm that in their opinion,  a) the financial statements give a true and fair view of the state of the project's  affairs at 31 March 2008 and of its surplus for the period ended;  b) at the date of this statement, there were reasonable grounds to believe that the  project will be able to pay its debts as and when these fall due; and  c) the financial statements are drawn up in accordance with applicable accounting  standards  This statement is made in accordance with a resolution of the Board of Directors. signed at ………………………………………………………….. on …………………….2008  ------------------------------------ ……………………………………………………………………  CHAIRPERSON TREASURER

Empowerment Micro Finance Institution Limited

Balance Sheet as at 31st March 2008 Non Current Assets Current Assets  Sundry Debtors(Staff) 45.042.770  Debtors 376.644.539  Bank and Cash Balances 375.009.564

2008  49.064.455  796.696.873 845.761.328

2007

 50.000.492  14.194.700  234.914.102  143.957.506  393.066.308 443.066.800

Current Liabilities  Other 4.263.400 2.389.824 Financed by:  Amounts Due more than 1 year 1.077.334 1.471.934  Institutional Funds 1.224.225.042 638.528.036  Revenue Reserves (383.804.448) (199.322.994) 845.761.328443.066.800 These Financial Statements were approved by the Board of Trustees on……………………………………………………………… And were signed on its behalf by: ………………………………………………………….) CHAIRPERSON ………………………………………………………….) ………………………………………………………….) TRESURER ………………………………………………………….)

Empowerment Micro Finance Institution Limited Notes to the Financial Statements Period ended 31st March 2008 1 Background Empowerment Micro Finance Institution Limited was registered as a company limited by guarantee on 29th January 2008, under Company Registration No. 70770. Its precursor, CeLIM Microfinance Institution, the operators of the Siavonga and Gwembe Projects, was established in Zambia in the year 2001 as a Non-Governmental Organisation(NGO) under Registration No. ORS/102/81/24. Its mission (purpose) is to support the development of the country and to increase the financial sources of the poor people. "E-MFI is a non profit organisation inspired by Christian values committed to enhance accessibility to capital in order to promote financial empowerment among the people of Southern Zambia". To this end the organisation has adopted to the following vision: "A financial empowerment of the community with income opportunities foe women and men in rural Zambia". 2 Principal Accounting Policies The Financial Statements are prepared in accordance with the historical cost convention. The following is a summary of the more important accounting policies used by the Fund.  a) Currencies The Financial Statements are expressed in Zambian Kwacha. Transactions in foreign currencies are recorded at the rate of exchange ruling at the date the transactions. Foreign currencies balances are translated at the rate of exchange ruling at the end of the financial year. Exchange differences arising from siavonga and Gwembe MC- Zambia bank account are dealt with in the income and expenditure account.  b) Depreciation Deprecation is calculated to write off the cost of the fixed assets on a straight line basis over the expected useful lives of the assets concerned. The principal annual rates to used annually have been set as follows:  Office Equipment 12%  Office Furniture and fittings 5% 3 Income Income includes interest on loans, Bank interest and sundry income. Loan interest Income is accounted for on receipt basis.

Empowerment Micro Finance Institution Limited Notes to the Financial Statements Period ended 31st March 2008 4 EXCESS OF INCOME OVER EXPENDITURE  Excess of income over expenditure is stated after charging: 2008 2007  DepreciationK K  1.410.220 1.410.220 5 TAXATION  Taxation is charged at 30% on taxable income. 6 DEBTORS 2008 2007  Trade debtors249.908.619 425.998.539 Less Provision for Doubtful  Debts (49.354.000) (14.994.517)  376.644.539 234.914.102  Other Debtors  Staff14.194.700 45.042.770  421.687.309 249.108.802 7 BANK AND CASH BALANCES 2008 2007 Finance Bank Zambia (Gwembe  Br.) 19.300.373 33.971.372 Finance Bank Zambia (Gwembe  Br. FD)  102.750.000 -  Finance Bank Zambia (Siav. Br.) 21.226.542 - Zambia National Commercial  Bank99.930.313 205.104.544  Cash in hand 26.628.105 10.055.821 143.957.506 375.009.564

Empowerment Micro Finance Institution Limited Notes to the Financial Statements Period ended 31st March 2008 9 Loan Loss Provision Loan Loss Provision is calculated on the projected Gross Loan Portfolio  for the following year, at 7% flat.

Empowerment Micro Finance Institution Limited Notes to the Financial Statements Period ended 31st March 2008 8 Fixed Assets EquipmentCost Office  At 1st April 2007 50.757.500

 Addition  At 31st March 2008 Depreciation

 At 1st April 2007

 Charge for the year

 5.022.000  55.779.500

 21.744.500

 6.297.140

 28.041.640 Net Book Value 31st March 2008 27.737.860  Net Book Value 31st March 2007 29.013.000

Office Furniture  26.828.939 1.769.000  28.597.939 5.841.447 1.429.897 7.271.344

 21.326.595  20.987.492

Total  77.586.439 6.791.000  84.377.439

 27.585.947

 7.727.037 35.312.984

 49.064.455

 50.000.492

Empowerment Micro Finance Institution Limited Income and Expenditure Statement for period ended 31 st March 2008 2008 2007 Income  Interest and Fees 170.922.022 69.642.412  Other Income 3.951.170 1.682.996  174.873.192 71.325.408 Expenditure  Personnel Expenses 208.496.534 72.423.214  Rent and utilities 34.538.763 34.862.693  Transportation 177.309.525 107.814.553  Office Supplies 16.062.454 9.293.540  Other Administration Expenses 32.527.980 15.162.368  Depreciation 7.727.037 7.035.947  Loan Loss Provision 65.116.755 2.218.117  541.779.048 248.810.432  (366.905.856) (177.485.024)  Extraordinary Expenditure (16.898.592) (21.837.970)  Excess of Expenditure over Income  before Funding and Donations(383.804.448) (199.322.994)  Funding from Parent Institutions 555.220.000 483.444.695  Donations to Loan Portfolio 229.800.000 -  Excess of Income over Expenditure 401.215.552 284.121.701