ECONOMIC ANALYSIS OF EBONYI STATE UNIVERSITY MICRO-FINANCE BANK DURING INDUSTRIAL TRAINING



CAPITAL - Ebonyi State University Microfinance bank has an authorized share capital of N44,816,511, made up at N500,000,000 ordinary shares of N1 each. While the share premium of EBSU MFBL was N1,660,312. Ebonyi State University Microfinance bank’s (EBSU, MFBL) statutory reserve as at 20th July 2012 was N40,000,000 with Revenue Reserve of N39,700,000. EBSU MFBL had interest income of N75671121 and interest expense of N12,268,602. With profit of N98,737,647 as at 20th July 2012.

Balance sheet analysis of EBSUS MFBL - A balance sheet is a brief description of the financial condition of an establishment. The balance sheet analysis shows the assets, liabilities and equity of an organization as at a specific date, such as end of a financial year.

The balance sheet analysis of Ebonyi State University Microfianance Bank Ltd as shown below is as at 20th July, 2012. 



FINANCIAL STATE OF EBSU  MFBL  AS AT 20TH JULY  2012

ASSETS                                                    

Cash
N1,200,865
Loans
43,506,556
Other Assets
  3,040,000
Fixed  Assets
27,923,700
Sub Total
75,671,121

LIABILITIES
Current liabilities
  4,518,652
Deposits
             00
Other  liabilities
  7,749,950
Total
12,268,602

CAPITAL AND RESERVES

          DR                                     CR
Paid up capital

39,700,000
General  reserve 
40,000,000

Share capital

51,916,510
Share premium
    5,656,702

Shareholders  funds
  76,514,853

Balance
122,171,555
91,616,510

NOTE TO ACCOUNTS AS AT 20TH JULY, 2012.
ASSETS 
                                                                               DR                        CR
Loans


28,500,000
Cash

1,200,865

Cash advance


     786,107
Over drafts
              

  1,306,500
Sub Total

1,200,865
30,586,607

CURRENT ASSETS 

Microcredit loans
    25,102,251
Small and medium enterprise loan
   16,100,000
Staff loan
      2,304,305
Sub Total
N43,506,556

FIXED ASSETS
Land and building
3,000,000

Plant and  building
5,080,000

Plant and machinery
2,220,000

Furniture and fittings
6,307,000

Office equipment

300,100
Computer equipment
10,616,000

Website installation
700,700

Sub Total
27,923,700
300,100
                  

OTHER ASSETS

Pre-operational expenses

  650,000
Pre-paid expenses
   770,000

Pre-paid insurance
1,200,000 

Stock of stationaries

   978,708
Cheques for collection

  202,414
Accrued interest receivable
1,070,000

Sub Total
3,040,000
1,831,122

PLACEMENT WITH OTHER BANKS
First Bank Plc 3 Water Workers
  1,200,700

Diamond Bank Plc CAS
  5,505,100

Fidelity Bank Plc,  Ogoja Road

100,000
UBA  Ogoja Road
  7,000,000

Enterprise Bank Ltd, Ogoja Road
     298,984

Skye Bank Plc Afikpo Road Ai
     887,800

Fixed  Deposit Account – First Bank Plc
  1,000,000

Fixed  Deposit Account- UBA
  5,955,160

Fixed  Deposit Account-  Eco bank plc
  1,650,888

Treasury bills
11,836,496

Sub total
35,335,128
100,000

NET ASSETS
N111,006,249

[[
LIABILITIES
CURRENT LIABILITIES
Holdover resources
900,000

Current account demand deposit

1,507,606
Savings and voluntary deposit

2,404,435
Fixed deposit

   606,611
Sub total
900,000
4,518,652

 

OTHER LIABILITIES 

Acc dept. land and building  (1% p.a)

      30,000
Acc dept. plant and machinery (20%p.a)

 1,016,000
Acc dept. Furniture and fittings (20%p.a)

    444,000
Acc dept. motor vehicle  (25% p.a)

 1,576,750
Acc dept. office equipment (20%p.a)

      60,000
Acc dept. computer equipment   (20% p.a)

 2,123,200
Uncleared effects
800,000

PAYE
  12,000

Account payable

 2,000,000
Provision for loan loses

    500,000
Sub Total
812,000
 7,749,950
[[[[[[[
Net liabilities
N12,268,602


NET PROFIT = NET ASSETS – NET LIABILITIES
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