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Head Office:
312, Effurun Sapele Road
Effurun-Warri, Delta State
Nigeria
Tel; +234-807-5787222
Email: headoffice@icglobalmfb.com

 

 

Director's Report

The Directors are pleased to report the affairs of your Bank and present the Balance sheet of your Bank and the Profit and Loss Account for the year ended March 31, 2009 and other financial statement s, together with the Auditors’ report on the accounts for your consideration.

 

  1. Legal Form

 

The Bank, which commenced operations in Oleh, Delta state of Nigeria on November 15th, 1991 as a community bank was incorporated as a private limited company in Nigeria on August 25, 1992. It was converted to a microfinance bank in 2007.

 

  1. Principal Activities

 

The Bank engaged in the business of providing microfinance banking services to individual’s mostly in the rural areas, corporate, and commercial customers. Such services include receipt of deposit, disbursement of microfinance loans and advances, group mobilization, bills discounting etc. Other services include the provision of financial services such as project financing, management and financial advisory services, bulk procurement of commodities and providing microfinance services and supports for the economic activities of the active low income groups and the active poor.

 

  1. Acquisition of other three Community Banks

 

Following the CBN directive with respect to change of name and recapitalization, your Directors and those of Iloho Cooperative, Ndokwa Community Bank Ltd and African Community Bank Ltd have concluded arrangement and discussions to merge all the assets, liabilities and operations of the four banks. The merger was effected through a Scheme of acquisition whereby IC-Global MFB acquired Iloho Cooperative, Ndokwa community Bank Ltd and African Community Bank Ltd. The Banks have filled pre-acquisition notifications with CBN and have received the requisite in-principle approvals of the Scheme from the regulatory authorities. The accounts presented before you today are first financial statements of the group after the merger.

 

  1. Results

 

The trading results of our operations of the Bank are summarized below, except otherwise stated, all figures are reported in the Nigeria Naira.

 

 

                                                                                          2009               2008
                                                                                          N,000              N,000
Profit attributable to ordinary shareholders                                 39,070            59,593
Less: Appropriations:
Transfer to statutory reserves                                                        9,767              14,898
Retained profit transferred to rev reserves                                   29,303            44,695

 

  1.      Dividend

 

In respect of the current year, the Directors recommend for approval a dividend of four kobo on each 50 kobo ordinary share amounting to N9,655,000, subject to the deduction of withholding tax at the appropriate rate. When approved, this will be implemented in the financial statements of the current year in accordance with the new regulation.


6.               Directors’ Interest in shares

The Directors who served the Bank during the year 2009 and their interest in shares of the Bank as at March 31, 2009 stood as follows:

Name of Directors                                                             Shareholding

1.      Barrister (Chief) Joe Arausi                                                    6,133,332
2.      Mr. Pius Malaka                                                                      3,333,332
3.      Chief (Dr) G. O. Akpojene                                                      4,622,500
4.      Maj. Gen. (Chief) P. U. Omu Rtd.                                          5,620,196
5.      Dr Ben Owhe Ureghe (Uzere Clan Nominee)                       4,678,610
6.      Hon. Ovuozourie S. Macauley                                               4,428,570

 

 

7.               Directors Responsibilities

The Directors are responsible for the preparation of the financial statements, which give a true and fair view of the state of affairs of the bank at the end of each financial year, and of the profit and loss account for that period and comply with the requirements of the Companies and Allied Matters Acts, CAP B3 LFN 2004. In doing so they ensure that:
●    Adequate internal control procedures are instituted to safeguard the assets, prevent and detect frauds and other irregularities;
●    Proper accounting records are maintained;
●    Applicable accounting standards are adhered to ;
●    Suitable accounting policies are adopted and consistently applied;
●    Judgments and estimates made are reasonable and prudent; and
●    The financial statements are prepared on the going concern basis unless it is inappropriate to presume that the Bank will continue is business.


8.                     Analysis of Shareholding

The structure of 808 members holding in our share capital of N120.4m as at March 31, 2009 is set out below:
1                                  <                      5000                           330
5,001                          <                      10,000                        149
10,001                        <                      50,000                        224
50,001                        <                      100,000                        43
100,001                      <                      250,000                        28
250,001                      <                      500,000                        13
500,001                      <                      1,000,000                      3
1,000,001                  <                      2,000,000                      6
2,000,001                  <                      3,000.000                      5
3,000,001                  <                      3,000,000                      7

Note that corporate bodies are not included in the above group.

 

  1. Fixed Assets

 

At note 8 to the audited accounts is set out the movement in fixed Assets of the Bank during the year. In summary a total of N127,377,556 was acquired during the year ended March 31, 2009. There was no disposal of assert, while the asset value before depreciation was N329,335,077. In the opinion of the Directors, the Assets Net Book Value (NBV) of N277,410,936 stated in the financial statements are not less than the market value of the Bank as at March 31, 2009.

 

  1. Employers and Employees’ Benefits
    1. Employment of physically challenged persons

 

It is the policy of the bank that there should be no unfair discrimination for employment. All employee whether disabled or not are given equal opportunity to develop. However, the group has no disable employee on its payroll as at March 31, 2009.

 

    1. Employees’ Welfare

 

The Bank and its subsidiary is committed to providing general medical, traveling and housing allowances for its employees.

 

    1. Employees’ Involvement and Training

 

The Bank places very high premium on consultation with employees fully informed on matters regarding the organisation’s performance and progress. The Bank strongly emphasizes the development of its human capital, thus we organise retreat and employ the services of various local training institutions and organizations such as Financial Institutions Training Centers, Chartered Institute of Bankers and CBN in our training programme.

 

  1. Declaration of Fraud and Forgeries

 

      There was no case of reported fraud and forgeries in the bank during the year ended March 31, 2009.

 

  1. Audit Committee

 

   There was no change in the Audit Committee. There were three directors and three shareholders that served in the Bank Audit Committee, the members were:

 

                  Directors                                                        Shareholders
Chief (Dr) G.O. Akpojene                               Mr. G. O. Ejenawo (chairman)
Maj. Gen. P. U. Omu (Rtd.)                           Mrs. Florence Agbaza
Chief L. O. Omoyibo                                      Ms. Ubeku Flora

  1. Auditors

 

   The Auditors, Messrs Spiropoulos, Adiele, Okpare & Co., (Chartered Accountants), Benin City, Nigeria have indicated their willingness, will continue in office. Aresolution would be proposed during the meeting to, authorize directors to fix their remuneration.

 

  1. Reserves

 

The Directors, in compliance with the relevant CBN guidelines, set aside the sum of N9,767,613 from profit after taxation to be transferred to statutory reserves as at March 31,2009

 

By ORDER OF THE BOARD

Barrister (Mrs.) O.J. Obasohan

Secretary to the Board