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HEAD OFFICE
Address : Nº 25, St 294&57, Boeung Kengkang1,
Chamkarmon, Phnom Penh, Cambodia.
P.O.Box : 2412
Tel : (855) 23 220 102 / 213 642
Fax : (855) 23 216 362
E-mail : [email protected]
Website : www.prasac.com.kh
PRASAC is a neighborhood MFI with deep and established roots in the communities in which it operates
Vision
Mission
To improve
the living standards
of the rural people contributing
to sustainable economic developments
by being a financially viable microfinance institution.
To provide sustainable
access to financial services for
rural communities and micro-enterprises.
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ABOUT
PRASAC MFI
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BACKGROUNDPRASAC’SPRASAC MFI was a former credit component of PRASAC project funded by the European Union and implemented by
three ministries of the Royal Government of Cambodia.
The project started in 1995 to rehabilitate and support agricultural sector in six provinces around Phnom Penh i.e.
Kompong Cham, Kompong Chhnang, Kompong Speu, Takeo, Prey Veng, and Svay Rieng. The PRASAC project
concluded in December 2003.
To ensure the access to financial services to rural communities and micro-enterprises beyond the closure of the project
in 2002, the PRASAC Project Steering Committee made on a strategic decision to transform its credit component in
a licensed MFI. In March 2002, the transformation started by creating PRASAC Credit Association as credit operator
registered with the National Bank of Cambodia (NBC).
In 2003, a trust fund called Cambodia Rural Development Foundation (CRDF) and PRASAC Staff Company were
established to facilitate the transformation. With two initial shareholders, PRASAC MFI Ltd was established by
registered with the Ministry of Commerce as private limited liability company in August 2004 and got its license from
the NBC in November 2004 to legally provision financial services to rural communities and micro-enterprises.
To finalize its transformation, PRASAC started to identify and negotiate with investors since 2005 in order to replace
the temporary shareholder i.e. CRDF. In 2007, PRASAC concluded its transformation by replacing CRDF with new five
shareholders. Those new shareholders are BIO (Belgian Investment Company for Developing Countries), DGC
(Dragon Capital Group), FMO (The Netherlands Development Finance Company), LOLC (Lanka ORIX LEASING
Company Ltd), and Oikocredit. Particularly, PRASAC receive a renewal a permanence license from NBC on December 2007.
In PRASAC MFI Ltd increased its share capital, 15 billion Riel (Fifty billion Riel) and received an award from NBC for
contribution to enhance financial services outreach throughout Cambodia.
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MILESTONE1995-1999: PRASAC I, three EU funded rural development
projects in six provinces, with three different credit
components.
2000-2003: Extension as PRASAC II, combined to one
project, one credit component.
2000: Early strategic decision to create a sustainable
institution beyond closure of PRASAC II project.
2001: Accounts, HO and field offices separated from
PRASAC II, own management and professional staff, but
still a project component.
2002: Creation of PCA (PRASAC Credit Association),
registered with the NBC in March 2002 as Rural Credit
Operator.
2003: Two initial shareholders were created. CRDF
(Cambodia Rural Development Foundation) a Trust Fund
created by PRASAC II and PRASAC Staff Company was
created by staff member.
2004: Registered PRASAC MFI Ltd with Ministry of
Commerce as private limited liability company and received
license from the NBC.
2005: The credit fund was transferred from EC to the
government and finally to PRASAC MFI as Subordinated
Debt with interest free, valid from Dec. 04.
2006: The commercialization process by seeking equity
investment participation from commercial and social investor.
2007: Finalized the transformation with the equity
participation of BIO, DCG, FMO, LOLC, Oikocredit, and PS
Co. renewal a permanence license from NBC.
2008: PRASAC MFI Ltd increased its share capital, 15 billion
Riel (Fifty billion Riel), distributed among its six current
shareholders. PRASAC received an award from the National
Bank of Cambodia for contribution to enhance financial
services outreach throughout Cambodia.
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BUSINESS OBJECTIVE
Credit service in form of
group loans and individual
loans .
To continue serving the rural poor under high professional and moral standards implementing
transparency and good governance on all operational levels.
To avoid mission drift.
To reinforce credit discipline among the staff and clients by strengthening the internal control
system.
To diversify loan portfolio and review financial products and services to be competitive and suit clients’
demands.
Savings and money transfer
services.
Raise fund or borrow money
in such manner as the
company shall think fit, and
to secure the repayment of
any money borrowed, raised
or owing to creditors.
Do all such other things as
are incidental or which the
Company may this fit and
conducive to the attainment
of the above objectives.
The business objectives of the Company
are to carry out activities of a micro-finance
institution, by providing financial services to rural
households and small and medium size enterprises, such as:
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The objectives shall be achieved by strict adherence of high professional and moral standards,
transparency, and good governance.
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BUSINESS OBJECTIVE
OUR CHALLENGESOUR CHALLENGES
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CLIENTS AND CLIENT HIGHLIGHT
RURAL COMMUNITY
MICRO ENTREPRENEUR
A.CLIENT PROFILE
Our clients are village households with repayment capacity that constitute up to 90% of all
households located in rural areas where bad roads and absence of facilities and utilities
prevail. The majority of the clients are involved in rice production and farming. At least one
person of such household is working in the semi subsistence village economy by employing some
productive assets of the household, such as land, tools, livestock and so forth. Cash income is mainly
generated from the sale of access rice or other food items (i.e. food what is not consumed by the
household), but also from trading or service activities.
Apart of rural people who generate income from rice production as well as from farming PRASAC also targeting
to micro-enterprises that produce (or offer services) predominantly to the market. The large majority
of them are sole proprietorships where family members help out in the running of the business. They are mainly
located in market centers that are located in or nearby district, provincial centre, and few in the villages. They
have few employees and they are normally family members.
Mrs. Ouk ChanTheoun, 37, is a client living in Samrong Village, Pou Commune,
Kompong Leang District, Kampong Chhnange Province.
Chantheoun is an individual loan client. She used to receive the first loan from
PRASAC since 2005 with amount of 400,000 Riels. She used to buy fishing
equipments. This makes her family earn more additional income with good
experience with PRASAC.
With a series of loans from PRASAC, she is successful in her livelihood with
many fishing equipments and more profit from that.
“Since I first received loan from PRASAC, I could increase my income. I also could build my house,
and buy a motor for my husband as well” said Mrs. Chantheoun.
B.MEETING PRASAC’S CLIENTS
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“With PRASAC, I could get money to extend my business and keep my business stay in progress
with some more revenues to support my family”
Because of hard working, their family can expand their business with wide range of services and spare
parts to supply the clients. In this regard, they can get more income from their services and support their
family with better nutrition.
In front of her grocery store, Mrs. Lim Sarum, 37, friendly informed us about
herself and the family. She is a farmer and her husband too. They live in
Kraing Khmer Village, Popel Commune, Boribour District Kampong Chhnang
Province. Beside the farming, she buys some groceries to sell for additional
income.
Her family is happy with her trading as well as many kinds of groceries selling
in the store as working capital provided by PRASAC.
She used to request loan from PRASAC for two times. The first loan was
300,000 Riels. That used for buying piglets and another loan was 500,000 Riels in which used to buy
some more grocery to keep her trading in progress. As a result, she could improve her house with a better
condition.
Mrs. Kim Keav, 33, is a client living in Pou Village, Pou Commune,
Kampong Leang District, Kampong Chhnang Province.
She is a housewife and her husband is a motor/bike repairer. Her family
is successful in their business with many spare parts of motors and bikes bought to
support his clients as loan received from PRASAC.
She is an old client who used to get loan from PRASAC for over 3 times as
needed. The last one is 2,000,000 Riels for during 12 months and monthly
interest and 3 month principle paid.
The reason why she chose PRASAC as her partner in running business due to PRASAC provides loan with
low interest rate than a private moneylender.
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PRODUCTS AND ELIGIBLE CRITERIAA.FINANCIAL PRODUCTS
GROUP LOANS
SOLIDARITY GROUP LENDING
INDIVIDUAL LOANS
INDIVIDUAL LENDING
Group solidarity is used in which the group members are self-selected between 2 to 5 members with one
group leader. Each member can borrow amounts ranging from KHR50,000 to KHR1,000,000 or USD15 to
USD250 within 12 months loan period. PRASAC charges interest 36% and 42% p.a. on declining balance.
- Group member: 2-5 members and one selected group leader
- One member from each household
- Have permanent resident in the village
- Similar loan purposes (not homogeneous)
- Age between 18 – 60 years
The target clientele are micro and small enterprises. The clients can borrow in Riel or US$ with the amount
range from KHR300,000 to KHR40,000,000 and USD75 to USD25,000 with the period up to 36 months.
The interest rate is 21.6% p.a. and 42% p.a.
- Have permanent resident in the village
- Age between 18 – 60 years
- Have/show profitable business
- Contribute 20% of their own capital into the business activity
- Have physical collateral and personal guarantee
B.ELIGIBLE CRITERIA
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FINANCIAL
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OWNERSHIP
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BIO is a member of EDFI, the Association of European Development Finance Institutions. BIO participates in European
Financing Partners / EFP, a co-financing facility established by 10 of the EDFI-members. Its purpose is to facilitate the financing
of private sector projects in the ACP states in collaboration with the European Investment Bank.
Dragon Capital Group (DCG) is a diversified investment banking institution offering traditional financial
products and services with an exclusive focus on Vietnamese capital markets. The firm is known both within
Vietnam and international financial circles as one of the premier Vietnam-focused financial institutions.
Dragon Capital Group serves the investment banking needs of international and domestic businesses to enable them to
realize their investment goals in Vietnam.
The Netherlands Development Finance Company (FMO) supports the private sector in developing countries
and emerging markets in Asia, Africa, Latin America and Central and Eastern Europe. We do this with loans,
participations, guarantees and other investment promotion activities.
Lanka Orix Leasing Company strives to deliver financial services to its customers with both corporate and rural
grass roots level, in every region where it operates in Sri Lanka. Since its inception in 1980, it has been working with
small and medium size entrepreneurs, which represents over 80% of its client portfolio. The Company innovates
continuously in providing adapted financial solutions such as leasing products, factoring services, savings and deposits
products, small loans and insurance broking services.
Oikocredit Started as a pioneer in the field of development financing. Today, it is one of the largest financiers of the
microfinance sector worldwide. Oikocredit is one of the few ethical investment funds, which finances development projects
in the South benefiting disadvantaged and marginalized people. Privately owned, Oikocredit is a unique cooperative society,
which encourages investors to invest their funds in a socially responsible manner.
PRASAC Staff Company (PS Co.) was established under the law and general provisions of Kingdom of Cambodia
and has the following objectives: To make equity investments in PRASAC MFI Ltd and to manage the investments in
accordance to high moral and professional standards, with transparency and good governance. The company
may be engaged in any other capital and asset management, investment and trading and other financial or other
activities and services which relates directly or indirectly to the above objectives or similar purposes, and is
characteristic to the development of the company’s operations.
SHAREHOLDERS SHAREHOLDER % SHAREHOLDING
BIO 18%
DCG 18%
FMO 18%
LOLC 18%
Oikocredit 18%
PS Co. 10%
The share capital of the Company as at December 2008 is KHR 15 Billion
(Fifteen billion Khmer Riel) distributed among the six shareholders - BIO,
Dragon Capital Group (DCG), The Netherlands Development Finance
Company (FMO), Lanka Orix Leasing Company (LOLC), Oikocredit, and
PRASAC Staff Company (PS Co.).
Here is a brief presentation of the shareholders :
PRASAC’S
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COMMITTEES
BOARD OF DIRECTORS COMMITTEES
With full capacity of the Board of Directors, the two initial committees were created in order to support the
management in operations.
The key role of this committee is to evaluate the performance of the top management and determine remuneration
for the top management. The committee composes of Mr. Stefan Harpe and Ms. Anne Demeuse.
The audit committee comprises of two Board of Directors i.e. Mr. Michael Temple and Mr. Ranjit Fernando and
Internal Audit Department Manager. The duties of the audit committee are to review the report of the internal
audit and external audit reports, monitor the integrity of the financial statements, compliance of the policies
and procedures, review the internal control system and risk management of PRASAC, and provide
recommendations for implementation. In addition, the non-executive members will meet the external auditors
twice a year i.e. in September before the external audit starts and in March after the completion of the external
audit assignment. The committee will meet at every three months.
AUDIT COMMITTEE
HR AND REMUNERATION COMMITTEE
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MR. MIKE TEMPLE,
Director, Chairman of the Board, Representative of DCG
MIKE was educated in both Hong Kong and Scotland and joined the HSBC Group
as an International Manager in 1977. He worked for HSBC in a number of areas
primarily in the corporate banking and risk management in Germany, Brunei, Hong
Kong, India, Indonesia, Bahrain and Vietnam. His last role in the HSBC Group was
Chief Operating Officer in Vietnam where he worked for 6 years. He also was the
project leader in evaluating the potential of Vietnam as a site for an HSBC Data
Processing and Call Center site.
He retired from the HSBC Group in 2005 and became a Director of Dragon Capital,
a UK based Investment Bank and Fund Management Company whose main focus
of business in Vietnam. He is the Group COO and is part of the committee that
evaluates the Groups private investments. PRASAC is the Dragon Capital Groups
first investment in Cambodia.
MR. STEFAN HARPE, DIRECTOR,
Member of the Board, Representative of Oikocredit
STEFAN is Manager – Equity Investments, Oikocredit, Amersfoort, Netherlands;
working with Oikocredit’s local managers in 28 country offices in Africa, Latin
America, Asia and Eastern Europe to manage the private equity investments
portfolio – i) financial (mostly microfinance); ii) non-financial (businesses with high
development impact); iii) specialized equity funds. Oikocredit is a global
development finance institution with about € 340 million total assets, funded by
individuals (26,000 shareholders), churches, and institutional investors. While
not profit-maximizing, and balancing dual objectives of development impact and
investment return, Oikocredit is sustainable and generates a healthy surplus on the
total portfolio (loans and equity).
Previously Stefan was Fund Manager, AfriCap Microfinance Fund, based in,
Senegal, and prior to that Director - International Operations, Calmeadow, Toronto,
Canada.
His formal education includes - MBA, Univ of Western Ontario, Canada; and
B.Sc (Econ), LSE, England.
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OF DIRECTORS’ PROFILEBOARD
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MR. ISHARA C. NANAYAKKARA,
Director, Member of the Board, Representative of LOLC
NANAYAKKARA is the Deputy Chairman of Lanka ORIX LEASING Company Ltd. He
is the Managing Director of Ishara Traders, the pioneering importer of reconditioned
motor vehicles in Sri Lanka. Having obtained a diploma in Business Accounting from
Australia, he worked in Japan for two years with the largest exporter of
reconditioned motor vehicles - Yamagin Corporation, Tokyo.
NANAYAKKARA is a Director of Ishara Plantations (Pvt) Ltd, and Ishara Property
Development (Pvt) Ltd. Mr. I C Nanayakkara also serves as a director on the boards
of all LOLC subsidiaries.
MR. OUM SAM OEUN, DIRECTOR,
Member of the Board, Representative of PS Co.
SAM OEUN used to work as chief accounting office of Takeo Province commerce
department. Since 1995 he has worked with PRASAC credit program and he has
attended several training courses related to microfinance operations. He was elected
as Chairman of Board of Director of PRASAC Staff Company (PSCo., Ltd) since 2003
and he was re-elected as the chairman PS Co., Ltd until present.
He holds Master of Business Administration, holds a Bachelor degree in Business
Management and obtained a Diploma in Accounting and Commerce in 1988.
MR. RANJIT MICHAEL SAMUEL FERNANDO,
Director, Member of the Board, Representative of FMO
Fernando is Team Leader- ICT Capacity Building Program, implemented by the
Government of Sri Lanka and funded by the World Bank. He is also a team leader in
consultancy assignment funded by the World Bank for the setting up of the Housing
Finance Corporation in the Maldives.
Fenando is an expert in Project/SME/Microfinance Financing Specialist,
Development Banking, Legal Aspects relating to credit and Banking, Institutional
Development and Strategic Planning, and Corporate Governance.
He holds Attorney at Law (1st Class Honours), Ceylon Law College, Sri Lanka;
Bachelor of Laws (Hons), University of Sri Lanka; Fellow of the Chartered Institute
of Bankers, United Kingdom; Fellow of the Chartered Institute of Management
Accountants, United Kingdom.
MS. ANNE DEMEUSE,
Director, Member of the Board, Representative of BIO
ANNE has been active within BIO nearly since its inception in July 2002. She initi-
ated BIO’s first investments, mainly in the microfinance sector and SME funds, and
held the position of Senior Investment Officer Asia until end 2005. Later in 2006,
she changed for the position of Portfolio Controller, responsible for the monitoring
of BIO’s investments. Before joining BIO, Ms Demeuse worked in the banking sector,
and more specifically in commercial banking and corporate finance where she
advised for IPOs and trade sale transactions. She also gained audit experience within
Ernst and Young after her graduation.
Ms DEMEUSE holds a degree of Management Engineer from the Solvay Business
School.
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TEAM MEMBERS’ PROFILEMR. SIM SENACHEERT, General Manager
General Manager, Senacheert holds a Master and Bachelor Degree in Business
Administration and obtained Diploma in Accounting and Finance in 1994. Since
1995 he has attended several training courses related to microfinance operations and
management. He is also an accredited Microfinance Training of Trainer certified by ADBI,
TDLC of the WB, and UNCDF.
He used to work in banking sector and he started working with PRASAC since 1995
as Credit Officer and was promoted to various positions such as accountant, Branch
Manager, MB Trainer and Supervisor, Finance Manager. From mid 2002, he used
to hold positions of Branch Manager, Operations Manager, and Deputy CEO with
another MFI before joining PRASAC as General Manager in late 2003.
MR. OUM SAM OEUN, Deputy General Manager, Chief Operations Officer
Deputy General Manager, Chief Operations Officer, Sam Oeun accredited Micro
Finance Training of Trainer certified by ADBI, TLDC of the WB, and UNCDF, holding MBA
of Banking and Finance, he obtained a Diploma in Accounting and Commerce in 1988
and holds a Bachelor degree in Business Management.
He used to work as chief accounting office of Takeo Province commerce
department. Since 1995 he has worked with PRASAC credit program and he has
attended several training courses related to microfinance operations.
He was promoted as Deputy General Manager of PRASAC MFI in early 2007.
MR. OUM SOPHAN, Deputy General Manager, Chief Finance Officer
Deputy General Manager, Chief Finance Officer, Sophan obtained his Bachelor’s
Degree in economics specializing in banking and finance from the Royal University of
Laws and Economics and holds a Master Degree in Business Administration from Norton
University in 2003.
Before joining with PRASAC’s team, Sophan has many years of experience in the field
of accounting, banking, and finance. For instance, he used to hold CFO position at TPC
Microfinance Institution from 2003 to 2008. He worked for the National Bank of
Cambodia in various supervisory positions, including credit, planning, and accounting
from 1981 to 1992. He joined Thai Farmers Bank where he served as Finance and
Accounting Supervisor from 1992 to 2001. He also used to work as Accounting
Manager of various private companies. He is currently holding the position as deputy
general manager, chief finance officer.
MANAGEMENT
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MR. YANG KIMSRENG, Finance Manager
Manager of Finance Department, Kimsreng hold MBA in Finance and Banking, BA in
field Accounting in 2003 and obtained Associates degree Specialize in Banking in 1998
at Center for Banking Study and. He has more than 10 Years Experience with
Micro-banker system as well as finance and banking. Since 1998 he participated in
several training courses related to microfinance.
He joined PRASAC in 1998 and he was promoted to be senior staff in 2001 and promoted
to be Deputy Finance Manager in October 2007 and Finance Manager in April 2008.
MR. OUK SAROEUNG, Internal Audit Manager
Manager of the Internal Audit Department, Saroeung holds Master of Business
Administration and obtained a Bachelor degree in Banking in 1989. Since 1995 he
participated in several training courses in local and international including in Asia, Africa
and Europe related to Audit, Finance, Management, and Microfinance.
He used to work in banking sector, He worked for the National Bank of Cambodia at
Branch Svay Rieng in various supervisor positions, including credit and planning from
1983 to 1995. He has more 10 years experience in microfinance. He joined PRASAC in
1995; he was promoted to be Audit Manager in 2003.
MR. NEANG SOKHIM, Credit Manager
Manager of Credit Department, Sokhim is an accredited Micro Finance Training of
Trainer certified by ADBI, TLDC of the WB, and UNCDF. He holds Master Degree in
Business Administration and obtained bachelor degree of science in Agronomy in 1997
and he studied two years of BBA. He has attended many courses related to micro finance
operations and other courses.
He started working in micro finance sector in 1998 as Credit officer, he was promoted to
be a Junior Internal Auditor, Senior Internal Auditor, Deputy Operation Manager, Deputy
Credit Manager and he is currently holding the position as Credit Manger.
MR. SAY SONY, Marketing Manager
Manager of Marketing Department, Sony is an accredited Microfinance Training of
Trainer certified by ADBI, TDLC of the WB, and UNCDF, he hold a bachelor degree in
Marketing Management from Maharishi Vedic University. He is currently taking Master
of General Management at Royal University of Law and Economics.
He has more than seven years experiences in project management as well as
marketing coordination in both social and private sector before joining PRASAC MFI in
early 2005 as chief marketing. He was promoted to be a Marketing Manager of
PRASAC MFI in 2007.
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MR. SUM SINATH, Branch Support Manager
Manager of Branch Support Department, Sinath accredited Microfinance Training
of Trainer certified by ADBI, TDLC of the WB, and UNCDF, obtained associate in
Accounting and Finance, bachelor degree in Business Administration and holds
Master of Business Administration. Moreover he participated in several training in career
development of Microfinance skills both local and oversea course.
He has more than seven years experience in Microfinance sector. He joined PRASAC in
2002 as credit officer; he was promoted to be branch manager, regional manager and
was promoted to be Branch Support Manager in early 2007.
MR. LY SOPHEAKTRA, IT Manager
Manager of IT Department, Sopheaktra holds MBA Finance & Banking in 2006
from Build Bright University; obtained B.Sc. IT in 2002 from Royal University of
Phnom Penh and BA Accounting & Finance in 2001 from National University of
Management. Currently he is pursuing Master Degree in IT.
Since 2002 he has attended numerous local and international training courses in Asia
and Europe related to IT/MIS technology, Management, and Microfinance.
He has more than seven years experience in IT/MIS Management, Database Design
& Report Writing, Financial Accounting, and Microfinance operations. Prior to
joining PRASAC, He used to work for a private construction company. He joined
PRASAC in 2002 as MIS Officer, moving on to be senior staff in 2003 as MIS Unit
Manager, and he was promoted to be IT Department Manager in early 2007.
MR. PHENG PUTHEARITH, Acting Human Resource Manager
Acting Manager of Human Resource Department, Puthearith obtained Master
Degree of Law from Royal University of Law and Economic in 2006, he got Diploma of
Functionary of General of Administration from Royal school of Administration (ERA), he
got Bachelor Degree of Mathematic from Royal University of Phnom Penh in 1995. He is
pursuing PhD of Law major in Public of Administration.
He used to work for Ministry of Labor and Vocational Training for 12 years with the
positions of Vice Chief Bureau, Chief Bureau, and Deputy Director of Department
in charge of Labor Law, Industrial Relations, Labor Dispute Settlement, During these
positions he has attended several Training courses related to Labor Law, Industrial
Relations, Wages and Productivity, Social Economy in Globalization and Human
Resources Management, from many country such as Japan, Korea, India, Singapore,
Malaysia, Philippine, Thailand, and Vietnam. And also he used to be a teacher at
Panhasas University Specialized in Labor Law, Industrial Relations and Human
Resources Management before joining PRASAC as Acting Human Resources
Manager in 2008.
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HIGHLIGHTS
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FROM THE GENERAL MANAGERREMARK
The year 2008 was a starting point of PRASAC’s operations after the completion of its transformation with the
replacement of temporary shareholder with the new shareholders. Although, PRASAC faced some constraints during
the financial year 2008, but, in general, PRASAC reached a great achievement and became the largest Microfinance
Institution in Cambodia in term of loan portfolio outstanding.
By having new shareholders that have strong financial knowhow and reputation in the sector and new Board of
Directors that have more experience in financial and banking operations, PRASAC has gained momentum and more
strength to further reach its double-bottom line goals through financial service provision. As the evidence, the
followings are the highlights of achievements that PRASAC reached during the year 2008.
During the first semester of 2008, PRASAC had a capital adequacy problem and as a consequence it could not grow
as plan and meet the clients’ demands. Therefore, to this problem, PRASAC increased its registered share capital
from KHR5.4 Billion to KHR15.4 Billion during the second semester of 2008. With this new capital increase, PRASAC
managed to increase its capacity to grow without any capital constraint and this make PRASAC eligible for applying
the deposit-taking license as well.
Although PRASAC faced capital constraint during the first semester and liquidity problem during late second
semester caused by the global financial crisis, PRASAC is still able to manage portfolio grows at 79% from
KHR134 Billion to KHR240 Billion at the end of December 2008 from December 2007 which was almost 10%
higher than expected. At the mean time, PRASAC could also maintain good portfolio quality at the preferable rate of
portfolio at-risk of 0.23% with small loan loss rate of 0.09%.
Not just only portfolio size, but PRASAC was also the largest Microfinance Institution in Cambodia in term of
employment, office networks, and operational areas. PRASAC had 1,024 staff working in more than 100 offices
and serving more than 100,000 clients in 7,475 villages, 1,180 communes, 126 districts and 16 provinces.
As the evidence, PRASAC received award from the National Bank of Cambodia for its contribution to enhance financial
services outreach throughout Cambodia.
By the end of 2008, PRASAC also reached good financial performance. PRASAC considerably improved its
efficiency and productivity by decreasing operating cost ratio from 17.3% to 15.5% and increased portfolio per
credit officer from KHR362 million to KHR449 million at the end of December 2007 and December 2008
respectively. As a result of an increase in large loans, the yield on gross portfolio decreased from 32% to 30%.
However, the return on assets slightly increased from 5.98% at the end of 2007 to 6.06% at the end of 2008 thank
to the improvement of the efficiency and productivity.
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Beyond providing financial services, PRASAC also actively involved in the social and environmental protection,
for instance, PRASAC is cooperating the National Biodigester Project to provide loans to farmers to build the
biogas plant. During 2008, there were 1,182 loans disbursed for this project. It is expected that this project will
help the clients to save costs on energy and increase time to generate income for their households and also protect
the environment.
Thank to professional, committed, and hard working staff, management, and Board of Directors, supports from
all stakeholders, and loyal and disciplined clients. We believe that the objectives for 2009 will be achieved
and the achievement of PRASAC will contribute to the economic and social development for the whole
Cambodia society.
And finally, we assure that our commitment is to grow along with all stakeholders.
Although we achieved great results in 2008, there are still many areas that need improvement and
strengthening; therefore, in 2009 we plan to implement the strategic priorities as follows:
i) Institutional consolidation. To do so we will limit annual portfolio growth at 26% and spend more times and
resources on strengthening management system and internal control system;
ii) Building institutional capacity by changing current MIS to a core banking solution and improvement
management capacity;
iii) Develop and diversify financial products such as savings and money transfer;
iv) Strengthening brand and community profile by revising branding and positioning, building physical image
and participate in social responsibility and environmental protection;
v) Further strengthening financial performance by ensuring the high portfolio quality and effective asset
performance.
SIM SENACHEERT
General Manager
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FROM THE CHAIRMAN OF BOARD OF DIRECTORSREMARK
The year 2008 will be remembered as a year that started out with promise but ended in gloom as the world
recession started to take effect. PRASAC had an exceptional year in 2008 and has now fully absorbed the
changes from being and NGO style company to a private shareholding company. The company implemented its main
objectives set for 2008 which included strengthening the management structure, looking at IT systems to replace its
outdated MicroBanker System and the increase its outreach into the rural areas of Cambodia.
On behalf of the Board of Directors, I would like to highlight some of the significant milestones during the year
as below:
PRASAC received an award from the National Bank of Cambodia, for its contribution to enhance financial services
outreach throughout Cambodia, which has been handed over by H.E The Governor Chea Chanto.
The internal audit function and internal control function was set up to maintain tight financial controls while
providing for sustainable growth. This team has been strengthened and the Board of Directors has put in place
an Audit Committee which liaises closely with Manager Audit and the General Manager to ensure that risk controls
are tight and action is taken to ensure issues are dealt with promptly.
In 2008, the Directors appointed by BIO and FMO were changed by the respective shareholders. The new members
of the Board are Ms. Anne Demeuse who replaces Mr. DIDIER MALENGREAU, representing Belgium Investment
Company for Developing Countries SA, (Director), and Mr. Ranjit Michael Samuel FERNANDO who has replaced
Mr. ZIEGFRIED VERMAAK, representing The Netherlands Finance Development Company, (Director). I would like to
acknowledge and thank Didier and Ziegfried for all the hard work they put in during their tenures on the Board
and wish to welcome Anne and Ranjit to the Board and we look forward to working with them and learning from the
different experiences and knowledge that they bring.
In 2009 PRASAC has put in place a strategy, devised in 2008, to continue providing a wide range of financial
services to the rural people of Cambodia. We have, with FMO financed USD2 Million biogas digesters and
have set up new branches in 15 and 7 as part of the ongoing EU funded ECOSORN project to bring financial
services to the remotest areas of the country. In addition lending policies were tightened and staff training
was enhanced to meet the challenges we saw coming as the world economic crisis took hold in 2009. The first half
of 2009 has been challenging but PRASAC has fared well so far and we believe that the second half of the year
will see an improvement in both the local and world economic climates.
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The company will continue to keep its promise to be the preferred MFI with deep and established roots in
the communities in which it operates and to serve its customers with respect and to focus on poverty reduction
in Cambodia.
As a key player in the Cambodian microfinance sector PRASAC remains committed to working with the National
Bank of Cambodia, DFI’s and the Micro Finance Association to improve and strengthen the sector, broaden
the products and services made available to rural communities and to look at ways to exchange information
of clients with other MFI’s to reduce the risks of customers becoming overburdened with debt.
The year 2009 will be a challenging one given the continuing economic instability in the world and in Cambodia.
The country is now starting to feel the effects of the downturn and it has not been as immune as was
previously thought. We are seeing a rise in the PAR 30 days though the work started last year has meant that
the levels are under control. In addition 2009 will see the implementation of the new Flexcube Banking system
which will require a lot of hard work to implement and of course train the staff, but we believe that this new
technology base will allow the company to further grow and enhance its products and service.
On behalf of the Board of Directors of PRASAC MFI, I wish to congratulate all PRASAC’s management and
staff who contributed to this performance and I also wish to thank the National Bank of Cambodia for
their continued support and advice and of course the Board of Directors and shareholders whose goal is
to further expand PRASAC achievements for the benefit of Cambodia in the future.
On behalf of the BOD,
MICHAEL TEMPLE
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HIGHLIGHTLOAN PORTFOLIO
By the end of 2008, PRASAC’s loan portfolio reached
KHR 240,394.4 million, an increase of 79 percent over
the previous year.
Loan has been classified as group loan and individual
loan that can be disbursed in KHR and USD currency.
The group loan represents 3 percent where as
individual loan represent 97% percent of total portfolio
outstanding. The group loan portfolio outstanding
increased by 32.3 percent to KHR7,267 million and
individual loan increased by 81 percent to KHR233,128
million compared to previous year.
Loan portfolio in KHR currency grew by 54 percent
to KHR105,598 million and loan portfolio in USD
currency grew by 106 percent to KHR134,797 million.
(Figures are in KHR Millions)LOAN PORTFOLIO
By the end of 2008, the number of active borrowers
reached 100,116 an increase of 5.88 percent over the
previous year. In term of product types, group loan
borrowers decreased by 29.58%, while individual loan
borrowers grew by 20.23%.
In 2008, PRASAC disbursed loan with total amount of
KHR327,665 million an increase of 63 percent over
previous year. The total number of clients disbursed in
2008 is 95,732 an increase of 7.55 percent over
previous year. The actual loan disbursement is
KHR327,665 million. This achievement was about
49 percent over the budget. The average disbursed
loan size is KHR3.422 million.
BORROWERS
LOAN DISBURSEMENT
OPERATIONAL
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By the end of 2008, PRASAC operated in 17 provinces,
126 districts, 1,180 communes, and 7,475 villages.
Compared to previous year there are an increment
of 3 provinces, 26 districts, 239 communes,1,265.
In term of office net work PRASAC operated in
15 branches, 71 sub branches and 20 service
offices. Compare to previous year there are increment
of 1 branch, 13 sub ranches.
(Loan Disbursed Amounts are in Millions)
(Portfolio outstanding is in Millions)
At the end of 2008, productivity is improved in term
of average portfolio outstanding per credit officer
and average portfolio outstanding per staff. The
average portfolio outstanding per credit officer
increase by 79 percent and average outstanding
per staff increase by 79 percent as well. The average
number of borrower per credit officer decrease by
28% and average number of borrower per staff
decrease by 25 percent. The reason of decrease is
because of staff recruitment. The total number of
credit officers recruited during the year was 167, and
total number of staff recruited during the year was 302
including credit officer.
PRODUCTIVITY
LOAN PORTFOLIO QUALITY
level, well trained staff especially credit officer, well
established credit policy, and procedure and loan work
out policy. Staff motivation, such as incentive that link
with loan quality is also a tool for maintaining good
portfolio quality. Besides these, the current MIS system
can provide data and information that make availability
for staff to monitor and follow up portfolio well.
PRASAC maintained its portfolio quality at very good
level. Portfolio at risk ratio represents 0.23% repayment
ratio represent 99.5% in 2008. The good loan portfolio
comes from good portfolio monitoring from all staff
(PAR amount and principal past due is in Millions)
OPERATION AREA
AND BRANCH NETWORK
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PERFORMANCE HIGHLIGHTSFINANCIAL
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AND COMMUNICATIONMARKETING
PRASAC is the largest MFI in Cambodia in term of number of staff, loan portfolio, office network, and coverage area.
End of 2008, PRASAC which had 1,026 staff deployed about 91 offices in 17 provinces and cities working in 125
districts, 1,147 communes, in 8,381 villages, and serving about 98,413 with loan portfolio about USD59 million about
22% of total microfinance market share.
Our clients are village households with repayment capacity that constitute up to 90% of all households located in
rural areas where bad roads and absence of facilities and utilities prevail. Apart of rural people who generate income
from rice production as well as from farming PRASAC also target micro-enterprises that produce or/and offer services
predominantly to the market.
As mentioned PRASAC serving about 11% of total microfinance clients which 49.5% used loans for agricultural
livelihoods; particularly, rice production and other multi-cultivations including buying seed, animals, biogas and other
agricultural equipments while 50.5% for service and trade activities.
In order to keep update with the current market situation and change, a regular survey such as PEST analysis,
SWOT analysis, Competitors analysis and Market analysis have been conducted to determine the significant
strategies to cope the current market trend.
Apart from above mentioned, there are some other research projects within the year such as clients drop out survey,
products analysis and development. PRASAC is looking to deeper SME market by joining with IFC to conduct a SME
survey with expected result of products development and serving more satisfactory to the segment.
Meanwhile, PRASAC is surveying the possibilities to revise savings service and develop new services if possible.
However, because there is no permission from the National bank of Cambodia to mobilize savings from the public for
MFI operations, we have to delay our savings product development until PRASAC have permission, in mid 2009.
MARKET AND CLIENTS
RESEARCH AND DEVELOPMENT
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As a deep and established root MFI in the communities, PRASAC intends to stand as a combine social and
commercial oriented company which continue to focus on poverty reduction in Cambodia with sustainable
financial returns.
Environment: PRASAC’s credit policy does not allow involvement with environmental pollution such as toxic gas,
polluted water, chemical residue, etc. and it has also limited itself not to provide its services to an activity that is
destroying the environment, reverting from the above mentioned PRASAC has joint a national biodegester program to
take part of forestry protection as well as to take part of communities sanitation by lending to 1,346 households out
of 2,200 plants, about 61% of total plants constructed by the program as at December 31, 2008.
Social Ethics: Apart from Commercial and Environmental protection, Social ethics is another concern. PRASAC
enforce ethical practice not only to field staff but also to management level. By establishing an internal rule together
with a revised personnel policy, customer care and service policy to ensure all staff is treated fairly, and to enforce a
common relationship among staff as well as towards clients and the community as a whole. Particularly, the simple
client protection principle plan also set to keep client satisfaction and share our social ethic to Cambodian people.
PRASAC has been continuing build up it corporate brand image as well as its products via an effective communication
strategy and approach. It has developed clear communication strategy but divided the internal audience and external
audiences by different communication tools such as website, annual report, brochures, calendars, leaflets, posters,
T-shirt, banner, and other mass media communication via Radio and TV.
As a result, PRASAC had defined its current positioning in good clients perception as a convenience and reliable MFI as
a neighborhood MFI with deep and established roots in the communities in which it operates, PRASAC MFI goes out
of its way to serve its customers with respect and friendly service.
BRANDING AND COMMUNICATIONS
ENVIRONMENTAL AND SOCIAL ETHICS
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PRASAC , currently, has employed 1027, of whom 856 male and 171 female staff to support vision and mission;
“To contribute to sustainable rural economic development in order to improve the living standards of the rural people
through creation of sustainable access to financial services for rural communities and micro-enterprises”.
PRASAC need skillful and knowledgeable staff to carry out their tasks and understand about microfinance or bank
environment. With this intention, this year, PRASAC’s professional staffs hold Associate Degree, 27, Bachelor Degree,
388, and Master Degree, 17. Moreover, most of them are improving their education background by pursuing Associate
Degree (28), Bachelor Degree (292), Master Degree (98), CPA (4) and PhD Degree (3). This has led PRASAC business
to grow rapidly not only in loan portfolio outstanding but also ensuringe high portfolio quality as well.
To assure the quality of service of each staff, PRASAC pay more attention on staff development and training since
they start their career. The learning about PRASAC policy, guideline and operation; and experiences learning as in-house
training are regularly prepared. Anyway, it is not really enough to develop staff capacity, so occasionally; PRASAC
provides the chances to many staff to participate in the in-country and oversea course to gain knowledge of
microfinance development in Cambodian and around the world, microfinance management skills, related technical
skills and regulation of National Bank of Cambodia.
As a result, in the year 2008:
• 296 New staff were trained.
• Promotional training to 100 promoted staff.
• 1,157 participants participated refreshment training, that some
of them attended more than one course during this year.
• 260 professional staff attended 39 courses as in-country
training course at 9 different institutes.
• 10 professional staff attended 7 oversea training courses or
conference around the world such as Philippines, Thailand,
Mongolia, Netherland and Italy.
STAFFING
STAFF TRAINING AND EDUCATION
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CONTROL AND RISK MANAGEMENT INTERNAL
To minimize the risk factor, PRASAC’s management has linked Internal Control to risk management. Risk
management is the process of assessment of relative risk and ensuring that controls are present and effective.
It covers prevention of potential problems and the early detection of actual problems when they occur.
Internal Control is a set of integrated methods and procedures translated into regular and periodic activities
that preserves safety of asset, improves client service, ensure reliability of financial information and staff
adherence to management policies and guidelines. PRASAC’s management use Internal Control to ensures
systems of accountability along with prevention of errors and irregularities, and system of detecting errors
and irregularities.
Internal Audit department is an independent appraisal function under control by the board of director of
PRASAC, the audit committee. Internal auditing is essential for ensuring the operation, appropriateness of
control and ensuring the reliability and integrity of financial management system of record keeping and reporting.
Internal Audit department was started in 2001 with a clear roles and responsibilities to improve the internal
control and analysis risk related to the operations as well as related to the compliance by issue accurate reports
on time to branch management and executive management to take rectify actions.
The internal audited reports were issued monthly bases to each branch with recommendations to respond
to the real case and findings. Additionally, the summary significant findings were issued monthly bases to
Audit Committee as well as the management to understand the current business situation and trend.
Since the beginning of the internal audit role, the internal control policy and procedure have been
developed and updated accordingly and particularly we build up the team with professional staff, as at
December 2008 the total staff of internal audit department consist of one internal audit manager, one
deputy internal audit manager, two senior auditors and 8 audit assistants working in three main unit such as
Operations Internal Audit Unit, Finance and Admin Internal Audit Unit and IT/MIS Internal Audit Unit.
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As at December 2008, there were 10,793 audited loan accounts, 22 reports related to Finance and Admin
Department, and 90 reports related to operations.
Through the findings of internal audited assignment in full year of 2008 we notice that the trend of errors
and frauds has decreased, and most field staff has shown a stronger commitment to comply with institutional
policies and procedures. Moreover, most of clients are not only satisfied with PRASAC’s services but also
appreciate with our professional customer care minded staff.
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FINANCIALStatements
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REPORT
PRASAC, a licensed micro-finance institution, was incorporated in Cambodia and registered with the Ministry of
Commerce as a private limited liability company under register number C0-6931/04P dated 12 August 2004. Its
activities are an offshoot of PRASAC Credit Association, which was managed by and funded by the European Union
(“EU”). PRASAC was initially established in 1995 as a support program for the agricultural sector in Cambodia,
covering six provinces around Phnom Penh, and is an integrated project.
PRASAC’s operations are based on the asset transfer document dated 10 May 2005, effective from 31 December
2004, whereby the net assets of PRASAC Credit Component were transferred to PRASAC as subordinated debt, as
discussed in note 18 to these financial statements.
PRASAC obtained its license from the Central Bank or the National Bank of Cambodia (“NBC”) to conduct business
as a micro-finance institution in the Kingdom of Cambodia as set out in the Central Bank’s register No. 10 dated 15
November 2004. The license expired on 1 December 2007. The renewal of the license from the National Bank of
Cambodia for an indefinite period of time was obtained on 14 December 2007.
The Board of Directors have pleasure in submitting their report together with the audited financial statements of
PRASAC Microfinance Institution Limited (“the Company” or “PRASAC”) for the year ended 31 December 2008.
PRASAC is engaged primarily in the provision of micro-finance services to the rural population of Cambodia through
its headquarters in Phnom Penh and various provincial offices in the Kingdom of Cambodia.
OF THE BOARD OF DIRECTORS
PRASAC MICROFINANCE INSTITUTION LIMITED
PRINCIPAL ACTIVITY
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There were no material movements to or from reserves and provisions during the financial year other than as disclosed
in the financial statements.
At the date of this report, the Board of Directors is not aware of any circumstances which have arisen which
render adherence to the existing method of valuation of assets and liabilities in the financial statements of the
Company as misleading or inappropriate.
Before the income statement and balance sheet of the Company were prepared, the Board of Directors took
reasonable steps to ensure that any current assets, other than debts, which were unlikely to be realised in the ordinary
course of business at their value as shown in the accounting records of the Company had been written down to an
amount which they might be expected to realise.
At the date of this report, the Board of Directors is not aware of any circumstances, which would render the
values attributed to the current assets in the financial statements of the Company misleading.
Before the income statement and balance sheet of the Company were prepared, the Board of Directors took
reasonable steps to ascertain that actions had been taken in relation to the writing off of bad loans and the making
of allowance for doubtful loans, and satisfied themselves that all known bad loans had been written off and
adequate allowance had been made for bad and doubtful loans.
At the date of this report, the Board of Directors is not aware of any circumstances, which would render the
amount written off for bad loans, or the amount of allowance for doubtful loans in the financial statements of
the Company, inadequate to any substantial extent.
FINANCIAL RESULTSFINANCIAL RESULTSThe financial results of the Company for the year ended 31 December 2008 were as follows:
KHR’000
Profit before income tax 15,278,030
Income tax expense 3,787,266
Profit for the year 11,490,764
RESERVES AND PROVISIONS
BAD AND DOUBTFUL LOANS
CURRENT ASSETS
VALUATION METHODS
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At the date of this report, there does not exist:
(a) any charge on the assets of the Company which has arisen since the end of the financial year
which secures the liabilities of any other person;
(b) any contingent liability in respect of the Company that has arisen since the end of the financial year
other than in the ordinary course of its business operations.
No contingent or other liability of the Company has become enforceable, or is likely to become enforceable within
the period of twelve months after the end of the financial year which, in the opinion of the Directors, will or may
substantially affect the ability of the Company to meet its obligations as and when they fall due.
At the date of this report, the Board of Directors is not aware of any circumstances, not otherwise dealt with in this
report or the financial statements of the Company, which would render any amount stated in the financial statements
misleading.
No significant events occurred after the balance sheet date that requires disclosure or adjustment other than those
already disclosed in the accompanying notes to the financial statements.
The members of the Board of Directors during the year and at the date of this report are:
All members are non-executive board members, except Mr. Oum Sam Oeun, who holds the position of Deputy
General Manager.
Mr. MICHAEL A. TEMPLE, representing Dragon
Capital Group Limited, (Chairman).
Ms. ANNE DEMEUSE, representing Belgian
Investment Company for Developing Countries
SA, (Director).
MR. RANJIT FERNANDO, representing the
Nederlandse Financiering-Maatschappij voor
Ontwikkelingslanden N.V., (Director).
MR. ISHARA C. NANAYAKKARA, representing
Lanka ORIX LEASING Company Ltd, (Director).
MR. STEFAN A.V. HARPE, representing
Oikocredit Ecumenical Development
Cooperative Society U.A., (Director).
MR. OUM SAM OEUN, representing PRASAC
Staff Company Ltd., (Director).
The results of the operations of the Company for the financial year were not, in the opinion of the Board of Directors,
substantially affected by any item, transaction or event of a material and unusual nature.
There has not arisen in the interval between the end of the financial year and the date of this report any item,
transaction or event of a material and unusual nature likely, in the opinion of the Board of Directors, to affect
substantially the results of the operations of the Company for the current financial year in which this report is made.
On 22 August 2008, the shareholders of PRASAC approved to increase the paid up share capital from KHR5,408,000,000
to KHR15,403,000,000. The total authorised share capital is 770,150 shares (31 December 2007: 270,400 shares)
with a par value of KHR20,000 per share.
CONTINGENT AND OTHER LIABILITIES
CHANGE OF CIRCUMSTANCES
ITEMS OF UNUSUAL NATURE
SHARE CAPITAL
EVENTS SINCE THE BALANCE SHEET DATE
THE BOARD OF DIRECTORS
1 4
2 5
3 6
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The Directors are representing the interests of shareholders of PRASAC during the year and at the date of this report
are as follows:
During and at the end of the financial year, no arrangements existed to which the Company is a party with the
object of enabling Directors of the Company to acquire benefits by means of the acquisition of shares in or debentures
of the Company or any other body corporate.
Since the end of the previous financial year, no Director of the Company has received or become entitled to receive
any benefit (other than a benefit included in the aggregate amount of emoluments received or due and receivable
by the Directors as disclosed in the financial statements) by reason of a contract made by the Company or a related
corporation with a firm of which the Director is a member, or with a company in which the Director has a substantial
financial interest other than as disclosed in the financial statements.
DIRECTORS’ INTERESTS
SHAREHOLDER REPRESENTED BYHOLDING
%
NUMBER OF SHARES
KHR 20,000 EACH
Dragon Capital Group Limited Mr. MICHAEL A. TEMPLE 18% 138,626
Belgian Investment Company for
Developing Countries SA (BIO)Ms. ANNE DEMEUSE 18% 138,626
The Nederlandse Financiering
Maatschappij voor
Ontwikkelingslanden N.V.(FMO)
Mr. RANJIT FERNANDO 18% 138,626
Lanka ORIX LEASING Company Ltd
(LOLC)Mr. ISHARA C. NANAYAKKARA 18% 138,626
Oikocredit Ecumenical Development
Cooperative Society U.A.Mr. STEFAN A. V. HARPE 18% 138,626
PRASAC Staff Company Ltd. Mr. OUM SAM OEUN 10% 77,020
100% 770,150
DIRECTORS’ BENEFITS
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The Board of Directors is responsible for ascertaining that the financial statements are properly drawn up so as to
give a true and fair view of the financial position of the Company as at 31 December 2008, and of the results of its
operations and its cash flows for the year then ended. In preparing these financial statements, the Board of Directors
is required to:
(i) adopt appropriate accounting policies which are supported by reasonable and prudent judgments
and estimates and then apply them consistently;
(ii) comply with Cambodian Accounting Standards and the guidelines issued by the National Bank of
Cambodia or, if there have been any departures in the interest of true and fair presentation, ensure
that these have been appropriately disclosed, explained and quantified in the financial statements;
(iii) maintain adequate accounting records and an effective system of internal controls;
(iv) prepare the financial statements on a going concern basis unless it is inappropriate to assume that the
Company will continue operations in the foreseeable future; and
(v) control and direct effectively the Company in all material decisions affecting the operations and
performance and ascertain that such have been properly reflected in the financial statements.
The Board of Directors confirms that the PRASAC has complied with the above requirements in preparing the financial
statements.
On behalf of the Board of Directors
Date:
RESPONSIBILITIES OF THE BOARD OF DIRECTORS
IN RESPECT OF THE FINANCIAL STATEMENTS
Mr. MICHAEL A.TEMPLE
Chairman
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We have audited the accompanying financial statements of PRASAC Microfinance Institution Limited
(“the Company” or “PRASAC”), which comprise the balance sheet as at 31 December 2008, and the
income statement, statement of changes in equity and statement of cash flows for the year ended 31 December
2008, and a summary of significant accounting policies and other explanatory notes as set out on pages 9 to 66.
The corresponding figures presented are based on the financial statements of the Company as at and for the year
ended 31 December 2007, which were audited by another auditor whose report dated 26 March 2008 expressed
an unqualified opinion on those financial statements.
The Company’s management is responsible for the preparation and fair presentation of these financial statements in
accordance with Cambodian Accounting Standards and the guidelines of the National Bank of Cambodia relating to
the preparation and presentation of the financial statements. This responsibility includes: designing, implementing and
maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from
material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and
making accounting estimates that are reasonable in the circumstances.
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our
audit in accordance with International Standards on Auditing. Those standards require that we comply with
relevant ethical requirements and plan and perform the audit to obtain reasonable assurance whether the
financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on our judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments,
we consider internal control relevant to the entity’s preparation and fair presentation of the financial statements in
order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness
of accounting principles used and the reasonableness of accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
TO THE SHAREHOLDERS
PRASAC MICROFINANCE INSTITUTION LIMITED
OF THE INDEPENDENT AUDITORSREPORT
MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
AUDITORS’ RESPONSIBILITY
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In our opinion, the financial statements give a true and fair view of the financial position of PRASAC as at
31 December 2008, and of its financial performance and its cash flows for the year then ended in accordance
with Cambodian Accounting Standards and the guidelines of the National Bank of Cambodia relating to the
preparation and presentation of the financial statements.
The accompanying financial statements have been translated into United States Dollars solely for presentation
purposes. We have audited the translation and, in our opinion, the financial statements expressed in Khmer Riel
have been translated into United States Dollars on the basis as set forth in Note 4 to the financial statements.
For KPMG Cambodia Ltd
Phnom Penh
30 March 2009
MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
CRAIG MCDONALD
Audit Partner
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Note2008 2007
ASSETS KHR’000 US$ KHR’000 US$
Cash on hand 5 1,870,985 458,462 2,728,695 681,662
Deposits and placements with banks 6 794,586 194,704 7,925,102 1,979,791
Statutory deposits 7 824,390 202,007 324,640 81,099
Loans to customers 8 236,496,230 57,950,559 132,051,328 32,988,091
Other assets 9 6,009,722 1,472,610 3,509,040 876,603
Deferred tax assets 10 407,822 99,932 249,057 62,218
Property and equipment 11 1,610,306 394,586 1,397,720 349,168
Total assets 248,014,041 60,772,860 148,185,582 37,018,632
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Deposits from customers 12 254,872 62,453 1,015,646 253,721
Borrowings 13 156,973,112 38,464,375 80,849,180 20,197,147
Other liabilities 14 4,669,225 1,144,137 3,732,347 932,388
Provision for income tax 10 3,427,838 839,951 1,748,087 436,694
Provision for retirement benefits 15 2,365,976 579,754 1,518,410 379,318
Share subscription received in advance 16 172,897 42,366 657,555 164,266
Total liabilities 167,863,920 41,133,036 89,521,225 22,363,534
SHAREHOLDERS’ EQUITY
Share capital 17 15,403,000 3,774,320 5,408,000 1,350,987
Special reserve 2,282,879 559,392 - -
Retained earnings 16,806,665 4,118,271 7,598,780 1,898,271
Net shareholders’ equity 34,492,544 8,451,983 13,006,780 3,249,258
Subordinated debt 18 45,657,577 11,187,841 45,657,577 11,405,840
Total shareholders’ funds 80,150,121 19,639,824 58,664,357 14,655,098
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY248,014,041 60,772,860 148,185,582 37,018,632
PRASAC MICROFINANCE INSTITUTION LIMITED
AS AT 31 DECEMBER 2008BALANCE SHEET
The accompanying notes form part of these financial statements.
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Note2008 2007
KHR’000 US$ KHR’000 US$
Interest income 19 55,810,063 13,675,585 35,228,215 8,800,453
Interest expenses 20 (10,724,492) (2,627,908) (5,472,070) (1,366,992)
Net interest income 45,085,571 11,047,677 29,756,145 7,433,461
Other operating income 21 991,656 242,993 730,957 182,602
Operating income 46,077,227 11,290,670 30,487,102 7,616,063
Fee and commission expenses 22 (118,317) (28,992) (133,588) (33,372)
Operating and other expenses 23 (29,337,352) (7,188,765) (20,057,921) (5,010,722)
Provision for bad and doubtful loans 8 (1,830,417) (448,522) (716,305) (178,942)
Profit from operations 14,791,141 3,624,391 9,579,288 2,393,027
Grant income 24 486,889 119,306 - -
Profit before income tax 15,278,030 3,743,697 9,579,288 2,393,027
Income tax expense 10 (3,787,266) (928,024) (1,981,241) (494,939)
Net profit for the year 11,490,764 2,815,673 7,598,047 1,898,088
The accompanying notes form part of these financial statements.
PRASAC MICROFINANCE INSTITUTION LIMITED
FOR THE YEAR ENDED 31 DECEMBER 2008INCOME STATEMENT
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Share
capital
KHR’000
Subordinated
Debt
KHR’000
Special
reserve *
KHR’000
Retained
earnings
KHR’000
Total
KHR’000
Balance as at 1 January 2007 250,000 34,674,673 - 5,158,733 40,083,406
Conversion of retained
earnings to share capital5,158,000 - - (5,158,000) -
Subordinated debt fromCambodian RuralDevelopment Foundation(“CRDF”)
- 10,982,904 - - 10,982,904
Net profit for the year - - - 7,598,047 7,598,047
Balance as at
31 December 20075,408,000 45,657,577 - 7,598,780 58,664,357
Issuance of share capital 9,995,000 - - - 9,995,000
Transfers of special reserve - - 2,282,879 (2,282,879) -
Net profit for the year - - - 11,490,764 11,490,764
Balance as at
31 December 200815,403,000 45,657,577 2,282,879 16,806,665 80,150,121
(US$ equivalents) 3,774,320 11,187,841 559,392 4,118,271 19,639,824
The accompanying notes form part of these financial statements.
* Special reserve represents reserves transferred from retained earnings which are calculated based on 5% of
subordinated debt. The amount is non-distributable.
PRASAC MICROFINANCE INSTITUTION LIMITED
FOR THE YEAR ENDED 31 DECEMBER 2008IN EQUITYSTATEMENT OF CHANGES
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Note2008 2007
KHR’000 US$ KHR’000 US$
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash used in operating activities
25 (92,919,092) (22,768,707) (31,318,517) (7,823,761)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment (761,987) (186,716) (394,630) (98,584)
Proceeds from disposals ofproperty and equipment
58,579 14,354 51,408 12,843
Net cash used in investing activities (703,408) (172,362) (343,222) (85,741)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceed from issue share capital 9,337,445 2,288,029 - -
Subordinated debts - - 10,982,904 2,743,668
Proceeds from borrowings 96,568,200 23,662,877 42,928,100 10,723,982
Repayments of borrowings (20,444,268) (5,009,622) (11,479,554) (2,867,738)
Receipt/(repayment) of share subscription received in advance
172,897 42,366 (10,982,904) (2,743,668)
Net cash generated from financing activities
85,634,274 20,983,650 31,448,546 7,856,244
Net decrease in cash and cash equivalents
(7,988,226) (1,957,419) (213,193) (53,258)
Cash and cash equivalents at beginning of year
10,653,797 2,661,453 10,866,990 2,678,578
Translation difference - (50,868) - 36,133
Cash and cash equivalentsat end of year
26 2,665,571 653,166 10,653,797 2,661,453
PRASAC MICROFINANCE INSTITUTION LIMITED
FOR THE YEAR ENDED 31 DECEMBER 2008FLOWSSTATEMENT OF CASH
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SIGNIFICANT NON-CASH TRANSACTIONS
During the year, there were following significant non-cash transactions:
Conversion of share subscription
received in advance into
Share Capital
657,555 161,126 - -
Note2008 2007
KHR’000 US$ KHR’000 US$
The accompanying notes form part of these financial statements.
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1. BACKGROUND AND PRINCIPAL ACTIVITIES 2. BASIS OF PREPARATION
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PRASAC MICROFINANCE INSTITUTION LIMITED
FOR THE YEAR ENDED 31 DECEMBER 2008STATEMENTSNOTES TO THE FINANCIAL
PRASAC Microfinance Institution Limited, a licensed
microfinance institution (“PRASAC”), was incorporated
in Cambodia and registered with the Ministry of
Commerce as a private limited liability company under
register number Co-6931/04P dated 12 August 2004.
Its activities are an offshoot of the PRASAC Credit
Association (“PCA”), which was managed and funded
by the European Union (“EU”). PCA was initially
established in 1995 as a support program for the
agricultural sector in Cambodia, covering 10 provinces
around Phnom Penh.
PRASAC’s operations are based on the asset transfer
document dated 10 May 2005, effective from 31
December 2004, whereby the net assets of PCA were
transferred to PRASAC as subordinated debt, as
discussed in note 18 to these financial statements.
PRASAC obtained its licence from the National Bank
of Cambodia (“NBC”) to conduct business as a micro-
finance institution in the Kingdom of Cambodia as set
out in the NBC’s register No. 10 dated 15 November
2004. The licence expired on 1 December 2007. PRASAC
obtained renewal of its licence for an indefinite period
from the NBC on 14 December 2007.
PRASAC is engaged primarily in the provision of micro-
finance services to the rural population of Cambodia
through its headquarter in Phnom Penh and various
provincial and district offices in the Kingdom of
Cambodia.
The amended Memorandum and Articles of
Association for the changes in shareholders were
certified by the Ministry of Commerce and the Central
Bank on 14 October 2008 and 6 November 2008
respectively.
As at 31 December 2008 the Company had 1,024
employees (31 December 2007: 722).
A). STATEMENT OF COMPLIANCE
The financial statements have been prepared in
accordance with Cambodian Accounting Standards
and the guidelines of the National Bank of Cambodia
(“NBC”) relating to the preparation and presentation
of financial statements.
Cambodian Financial Reporting Standard 7, Financial
Instruments: Disclosures, has been promulgated in
2007 and is effective for annual periods beginning on
or after 1 January 2008. Adoption of this Standard
increases the level of disclosures in respect of financial
instruments, but has no impact on the reported profits
or financial position of the Company.
B). BASIS OF MEASUREMENT
The financial statements of the Company have been
prepared on the historical costs basis.
C).FUNCTIONAL AND PRESENTATION CURRENCY
The Company transacts its business and maintains
its accounting records in two currencies, Khmer
Riel (“KHR”) and United States Dollars (“US$”).
Management have determined the KHR to be the
Company’s currency for measurement and
presentation purposes as it reflects the economic
substance of the underlying events and circumstances
of the Company.
Transactions in currencies other than KHR are
translated into KHR at the exchange rate ruling at
the date of the transaction. Monetary assets and
liabilities denominated in currencies other than KHR
at the balance sheet date are translated into KHR at
the rates of exchange ruling at that date. Exchange
differences arising on translation are recognised in the
income statement.
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The preparation of financial statements requires
management make judgements, estimates and
assumptions that affect the application of accounting
policies and the reported amounts of assets, liabilities,
and income and expenses. Actual results may differ
from these estimates.
Estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimates are
revised and in any future periods affected.
The significant accounting policies adopted in the
preparation of these financial statements are set out
below. These policies have been consistently applied to
all the years presented, unless otherwise stated.
A). FINANCIAL INSTRUMENTS
The Company’s financial assets and liabilities include
cash and cash equivalents, originated loans and
receivables, deposits, other receivables and payables.
The accounting policies for the recognition and
measurement of these items are disclosed in the
respective accounting policies.
B). SEGMENT INFORMATION
The Company operates within one business segment,
commercially oriented micro-finance services, and
within one geographical segment, the Kingdom of
Cambodia.
C). BASIS OF AGGREGATION
The Company’s financial statements comprise the
financial statements of the head office and its
branches. All inter-branch balances and transactions
have been eliminated.
D). CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of cash and bank
balances, demand deposits and short-term highly
liquid investments with maturities of three months or
less when purchased, and that are readily convertible
to known amounts of cash and subject to an
insignificant risk of changes in value.
E). LOANS TO CUSTOMERS
Loans to customers are stated in the balance sheet at
the amount of principal outstanding less any amounts
written off and specific and general provisions.
The adequacy of the provision for bad and doubtful
loans is evaluated monthly by management. Factors
considered in evaluating the adequacy of the provision
include the size of the portfolio, previous loss
experience, current economic conditions and their
effect on clients, the financial situation of clients and
the performance of loans in relation to contract terms.
F). PROVISION FOR BAD AND DOUBTFUL LOANS
In compliance with the NBC Guidelines, a specific
provision for bad and doubtful loans is made on loans
that are identified as non-performing, as follows:
An additional general provision for bad and doubtful
loans is set at the rate of 1.5% on gross loans
outstanding as at year end, excluding loans to related
parties (staff loans).
OVERDUE LOANS
In accordance with Prakas B700-51K issued by the
National Bank of Cambodia on 17 February 2000,
overdue loans are defined as the total outstanding
principal where principal or interest are past due unless
the payment terms on interest or principal have been
adjusted.
Classification
Short term loans
(less than one year):
Sub-standard
Doubtful
Loss
Classification
Long term loans
(more than one year):
Sub-standard
Doubtful
Loss
Number of days
past due
31 - 60 days
61 - 90 days
Over 90 days
Number of days
past due
31 - 180 days
181 - 360 days
Over 360 days
Provision
10%
30%
100%
Provision
10%
30%
100%
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(iv)
(v)
(vi)
J). IMPAIRMENT
(i)
The provision will be calculated as a percentage of
the loan amount outstanding at the time the loan is
classified, excluding accrued interest. The provision
shall be recorded in the institution’s accounts and
charged to the income statement for the month
during which the corresponding loan has been
classified below standard. The analysis of overdue
loans is set out in note 8(g).
Recoveries on loans previously written off and
reversal of previous provisions are disclosed as a
deduction from the bad debts and doubtful accounts
expense in the income statement.
An uncollectible loan or portion of a loan classified as
bad is written off after taking into consideration the
realisable value of the collateral, if any, when, in the
judgement of the management with the approval of
the Board of Directors, there is no prospect of recovery.
Loans written off are reviewed on a quarterly basis.
G). DEPOSITS AND PLACEMENT WITH BANKS
Deposits and placements with banks are stated at
cost.
H). OTHER RECEIVABLES
Other receivables are carried at estimated realisable
value. An estimate is made for doubtful receivables
based on a review of outstanding amounts at the end
of the fiscal year.
I). PROPERTY AND EQUIPMENT
(i)
(ii)
(iii)
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asset when it is probable that future economic
benefits, in excess of the originally assessed
standard of performance of the existing asset,
will flow to the Company. All other subsequent
expenditure is recognised as an expense in the
period in which it is incurred.
Gains or losses arising from the retirement or
disposal of an item of property and equipment
are determined as the difference between the
estimated net disposal proceeds and the carrying
amount of the assets and are recognised in the
income statement on the date of retirement or
disposal.
Fully depreciated items of property and
equipment are retained in the financial statements
until disposed of or written off.
The carrying amounts of property and
equipment are reviewed for impairment when
there is an indication that the assets might be
impaired. Impairment is measured by comparing
the carrying values of the assets with their
recoverable amounts. An impairment loss is
charged to the income statement immediately.
Subsequent expenditure relating to an item of
property and equipment that has already been
recognised is added to the carrying amount of the
Financial assets
A financial asset is assessed at each reporting
date to determine whether there is any objective
evidence that it is impaired. A financial asset is
considered to be impaired if objective evidence
indicates that one or more events have had a
negative effect on the estimate future cash flows
of that asset. This does not apply to loans to
customers which has a separate accounting policy
stated in Note 3(e).
Individually significant financial assets are
tested for impairment on an individual basis.
The remaining financial assets are assessed
collectively in groups that share similar credit risk
characteristics.
All impairment losses are recognised in the income
statement.
An impairment loss is reversed if the reversal can
be related objectively to an event occurring after
the impairment loss was recognised.
Office furniture Motor vehicles Motorcycles Computers and peripherals Communication equipment
25%25%25%50%25%
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Items of property and equipment are stated at
cost less accumulated depreciation and
accumulated impairment losses, if any. Where
an item of property comprises major components
having different useful lives, the components are
accounted for as separate items of property and
equipment.
Depreciation of property and equipment is
charged to the income statement on a declining
basis over the estimated useful lives of the
individual assets at the following rates:
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K). DEPOSITS FROM CUSTOMERS
Deposits from customers are stated at placement value.
L). BORROWINGS
Borrowings are stated at cost.
M). PROVISIONS
A provision is recognised in the balance sheet when
the Company has a legal or constructive obligation as
a result of a past event, and it is probable that an
outflow of economic benefits will be required to settle
the obligation. If the effect is material, provisions are
determined by discounting the expected future cash
flows at a pre-tax rate that reflects current market
assessments of the time value of money and, where
appropriate, the risks specific to the liability.
N). PROVISION FOR RETIREMENT AND SEVERANCE PAY
Retirement benefits are conditional on the employee
remaining in the service of the Company up to
retirement age and the completion of a minimum
service period as follows:
CO
NTA
CT U
SA
BO
UT PR
ASA
C M
FI LTDO
WN
ERSH
IP AN
D G
OV
ERN
AN
CE
REPO
RT H
IGH
LIGH
TS
Non-financial assets
The carrying amounts of the Company’s Non-
financial assets are reviewed at each reporting
date to determine whether there is any indication
of impairment. If any such indication exists, the
asset’s recoverable amount is estimated.
The recoverable amount of an asset or cash-
generating unit is the greater of its value in use
and its fair value less cost to sell. In assessing
value in use, the estimated future cash flows are
discounted to their present value using a pre-tax
discount rate that reflects current market
assessments of the time value of money and the
risks specific to the asset. For the purpose of
impairment testing, assets are grouped together
into the smallest group of assets that generates
cash inflows from continuing use that are largely
independent of the cash inflows of other assets or
groups of assets (the “cash-generating unit”).
An impairment loss is recognised if the carrying
amount of an asset or its cash-generating unit
exceeds its estimated recoverable amount.
Impairment losses are recognised in the income
statement.
Number of working years
Less than 3 years
More than 3 years and less than 6 years
More than 6 years and less than 10 years
More than 10 years
Percentage (%) of December
salary provided
50%
80%
100%
120%
The differences between provision for retirement and
severance benefits and realised amount will be charged
to income statement when incurred.
53
O). SPECIAL RESERVE
Based on the memorandum and articles of association,
the Company has to transfer to this reserve fund from
retained earnings an annual amount equal to 5% of
its subordinated debt from RGC for the annual capital
protection of the subordinated debt. This reserve is
non-distributable.
P). INCOME AND EXPENSE RECOGNITION
Interest income on loans is recognised on an accruals
basis. Where a loan becomes non-performing, the
recording of interest as income is suspended until it is
realised on a cash basis. Interest on loans is calculated
using the declining balance method on monthly
balances of the principal amount outstanding.
Loan administrative fee income is recognised as income
when the loan is disbursed to customers. The loan fee
income is calculated using the principal and fee rate.
Expenses are recognised on an accrual basis.
Q). GRANTS
Grants received to subsidise the Company’s operating
expenses are released to the income statement on a
systematic and rational basis, matching the related
costs which they are intended to compensate.
R). OPERATING LEASES
Payments made under operating leases are recognised
in the income statement on a straight-line basis over
the term of the lease.
S). INCOME TAX
Income tax on the profit or loss for the year comprises
current and deferred tax. Income tax is recognised
in the income statement except to the extent that it
relates to items recognised as a component of
shareholder equity, in which case it is also disclosed as
a component of shareholder equity.
Current tax is the expected tax payable on the taxable
income for the year using tax rates enacted or
AU
DITED
FINA
NC
IAL STA
TEMEN
TS
CO
NTA
CT
US
AB
OU
T PR
ASA
C M
FI L
TDO
WN
ERSH
IP A
ND
GO
VER
NA
NC
ER
EPO
RT
HIG
HLI
GH
TS
substantially enacted at the balance sheet date, and
any adjustment to tax payable in respect of previous
years.
Deferred tax is provided using the balance sheet
method, providing for temporary differences between
the carrying amounts of assets and liabilities for
financial reporting purposes and the amounts used
for taxation purposes. The amount of deferred tax
provided is based on the expected manner of
realisation or settlement of the carrying amount of
assets and liabilities, using tax rates enacted at the
balance sheet date.
A deferred tax asset is recognised only to the extent
that it is probable that future taxable profits will
be available to permit the realisation of the asset.
Deferred tax assets are reduced to the extent that it is
no longer probable that the related tax benefit will be
realised.
T). RELATED PARTIES
Parties are considered to be related to the Company
if one party has the ability, directly or indirectly, to
control the other party or exercise significant influence
over the other party in making financial and operating
decisions, or where the Company and the other party
are subject to common control or significant influence.
Related parties may be individuals or corporate
entities and include close family members of any
individual considered to be a related party.
Under the Law on Banking and Financial Institutions,
related parties include individuals who hold directly
or indirectly a minimum of 10 percent of the capital
of the Company or voting rights therefore, or who
participates in the administration, direction,
management or the design and implementation of
the internal controls of the Company.
HEAD OFFICEProvincial branchesBaty
Siem Reap
Kamchaymear
Bakan
Kampong Thmar
Prek Kdam
Kampong Trabek
Prey Veng
Kampong Chhnang
Takeo
Batheay
Pursat
Ponheakraek
Chhouk
Kampong Tralach
Stong
Preah Sdach
Kampong Thom
Bek Chan
Battambang
Kirivong
Mong Reussey
Kien Svay
Orang Ov
Banteay Meas
Kampong Speu
Chantrea
Prey Chhor
Ta Khmau
Ang Ta Som
Prey Nob
Kampong Popil
Boribo
Baphnom
Svay Rieng
Koh Thom
Prey Kabas
Chamkaleu
Cheung Prey
Banteay Meanchey
Tbong Khmum
Reussey Keo
Kampong Chrey
Koh Sotin
Chhlong
Kong Pisey
Neak Loeung
Stoueng Trang
Kampong Cham
Muk Kampoul
Sa ang
Kampot
Krakor
Kampong Trach
Odong
Kratie
Kandal Steung
Sreysanthor
Prey Kry
Kampong Leng
KHR’000
29,837
83,398
83,213
67,823
66,715
65,949
65,598
61,126
59,474
57,980
57,853
56,464
55,916
55,557
55,359
49,084
47,424
46,470
46,306
45,450
44,118
38,414
38,360
37,448
36,610
36,062
34,473
28,603
26,620
25,192
23,278
21,791
20,067
21,452
21,365
21,216
20,674
17,694
17,338
17,222
16,765
16,424
16,110
15,297
14,834
12,630
12,301
10,874
8,424
8,332
7,395
6,380
5,749
4,350
4,167
2,516
1,808
1,238
398
-
-
1,870,985
KHR’000
173,042
15,346
-
25,956
8,578
46,423
33,876
30,352
83,197
45,362
108,326
-
83,752
34,745
19,108
15,009
4,427
-
51,538
37,797
-
57,767
714
28,307
-
46,140
43,307
-
83,035
32,089
-
-
98,745
3,451
45,825
114,651
31,273
18,348
162,580
174,877
-
125,553
27,748
29,337
76,987
36,510
26,468
11,774
-
192,954
42,732
28,684
44,104
1,729
-
49,551
-
16,006
124,977
129,101
6,537
2,728,695
US$
7,311
20,436
20,390
16,619
16,348
16,160
16,074
14,978
14,573
14,207
14,176
13,836
13,702
13,614
13,565
12,026
11,621
11,387
11,347
11,137
10,811
9,413
9,400
9,176
8,971
8,837
8,447
7,009
6,522
6,173
5,704
5,340
4,917
5,257
5,235
5,199
5,066
4,336
4,248
4,220
4,108
4,025
3,948
3,748
3,635
3,095
3,014
2,665
2,064
2,042
1,812
1,563
1,409
1,065
1,020
617
443
303
98
-
-
458,462
US$
43,228
3,834
-
6,484
2,143
11,597
8,463
7,582
20,784
11,332
27,061
-
20,922
8,680
4,774
3,749
1,106
-
12,875
9,442
-
14,431
177
7,072
-
11,526
10,819
-
20,743
8,016
-
-
24,668
862
11,448
28,641
7,812
4,584
40,614
43,686
-
31,365
6,932
7,329
19,232
9,121
6,612
2,941
-
48,202
10,675
7,166
11,018
432
-
12,378
-
3,999
31,221
32,251
1,633
681,662
The financial statements are stated in Khmer Riel. The
translations of Khmer Riel amounts into United States
Dollars are included solely for presentation purposes and
have been made using the prescribed official exchange
rate of US$1: KHR4,081 (2007: US$1: KHR4,003)
published by the NBC on 31 December 2008. These
translations should not be construed as representations
that the Khmer Riel amounts have been, could have
been, or could in the future be, converted into United
States Dollars at this or any other rate of exchange.
4. TRANSLATION OF KHMER RIEL INTO UNITED STATES DOLLARS
5. CASH ON HAND2008 2007
54
AU
DIT
ED F
INA
NC
IAL
STA
TEM
ENTS
7. STATUTORY DEPOSITS
8. LOANS TO CUSTOMERS
6. DEPOSITS AND PLACEMENTS WITH BANKS
CO
NTA
CT U
SA
BO
UT PR
ASA
C M
FI LTDO
WN
ERSH
IP AN
D G
OV
ERN
AN
CE
REPO
RT H
IGH
LIGH
TS
Group loans
Individual loans
Specific
General
KHR’000
7,266,646
233,127,811
240,394,457
(294,218)
(3,604,009)
(3,898,227)
236,496,230
KHR’000
5,490,728
128,804,240
134,294,968
(239,520)
(2,004,120)
(2,243,640)
132,051,328
US$
1,780,604
57,125,169
58,905,773
(72,095)
(883,119)
(955,214)
57,950,559
US$
1,371,654
32,176,927
33,548,581
(59,835)
(500,655)
(560,490)
32,988,091
Capital guarantee deposit
Reserve requirement
KHR’000
770,150
54,240
824,390
KHR’000
270,400
54,240
324,640
US$
188,716
13,291
202,007
US$
67,549
13,550
81,099
At beginning of year
Provision for the year
Written off during the year
Translation difference
At end of year
KHR’000
2,243,640
1,830,417
(175,830)
-
3,898,227
KHR’000
1,527,335
716,305
-
-
2,243,640
US$
560,490
448,522
(43,085)
(10,713)
955,214
US$
376,469
178,942
-
5,079
560,490
Current accounts, without interest
National Bank of Cambodia
Acleda Bank Plc.
Savings accounts
Acleda Bank Plc
Within 1 month
Khmer Riel
US Dollars
Savings accounts
KHR’000
102,162
95,210
4,403
592,811
794,586
794,586
393,190
401,396
794,586
KHR’000
7,860,891
11,244
4,418
48,549
7,925,102
7,925,102
6,106,081
1,819,021
7,925,102
US$
25,034
23,330
1,079
145,261
194,704
194,704
96,347
98,357
194,704
US$
1,963,750
2,809
1,104
12,128
1,979,791
1,979,791
1,525,376
454,415
1,979,791
The statutory deposits are maintained with the NBC
in compliance with Prakas No. B7-00-006 on the
Licensing of Micro-Finance Institutions, the amounts
of which are determined by defined percentages of
the Company’s registered share capital and customers’
deposits with the Company.
The statutory deposit on registered share capital is
refundable when the Company voluntarily liquidates
and has no deposit liabilities. The statutory deposit on
customers’ deposits fluctuates depending on the level
of the customers’ deposits.
From September 2006, the statutory deposit on
registered capital placed with NBC earns interest at the
rate of 3% per annum. The statutory deposit relating
to customers’ deposits does not earn interest.
The movements in allowance for bad and doubtful loans to customers were as follows:
The above amounts are analysed as follows:
31 December 2007
2%
31 December 2008
2%
Within 1 month
1 to 3 months
3 to 12 months
More than 12 months
Khmer Riel
US Dollars
Agriculture
Trade and commerce
Services
Transportation
Construction
Household/family
Other categories
Residents
External customers
Staff loans
2,876,902
13,078,471
111,699,826
112,739,258
240,394,457
105,597,898
134,796,559
240,394,457
89,943,233
78,403,795
19,579,835
21,006,975
2,508,459
28,952,160
-
240,394,457
240,394,457
240,267,247
127,210
240,394,457
2,057,900
9,597,373
75,775,147
46,864,548
134,294,968
68,705,282
65,589,686
134,294,968
61,294,146
36,762,273
16,795,507
2,196,221
2,114,236
13,177,112
1,955,473
134,294,968
134,294,968
133,607,966
687,002
134,294,968
704,951
3,204,722
27,370,700
27,625,400
58,905,773
25,875,496
33,030,277
58,905,773
22,039,508
19,211,908
4,797,803
5,147,507
614,668
7,094,379
-
58,905,773
58,905,773
58,874,601
31,172
58,905,773
514,089
2,397,545
18,929,590
11,707,357
33,548,581
17,163,448
16,385,133
33,548,581
15,312,052
9,183,681
4,195,730
548,644
528,163
3,291,809
488,502
33,548,581
33,548,581
33,376,959
171,622
33,548,581
By currency:
Khmer Riel
US Dollars
KHR’000
1,115,963
755,022
1,870,985
KHR’000
1,313,006
1,415,689
2,728,695
US$
273,453
185,009
458,462
US$
328,005
353,657
681,662
The above amounts are analysed as follows:
(a) By maturity:
(b) By currency:
(c) By interest rate (per annum):
Foreign Trade Bank
Statutory deposits on:
Provision for bad and doubtful loans
The loans to customers are analysed as follows:
(a) By maturity:
(b) By currency:
(c) By economic sector:
(d) By residency status:
(e) By relationship:
2008 2007
2008 2007
2008 2007
2008 2007
20072008
55
AU
DITED
FINA
NC
IAL STA
TEMEN
TS
CO
NTA
CT
US
AB
OU
T PR
ASA
C M
FI L
TDO
WN
ERSH
IP A
ND
GO
VER
NA
NC
ER
EPO
RT
HIG
HLI
GH
TS
Head Office
Kampong Chrey
Kampong Speu
Takeo
Svay Rieng
Baty
Kampong Popil
Ponheakraek
Bek Chan
Koh Thom
Odong
Kong Pisey
Kien Svay
Banteay Meas
Sa ang
Chhlong
Kirivong
Pursat
Kampong Thmar
Ang Ta Som
Prey Kabas
Chantrea
Bakan
Tbong Khmum
Kampong Trabek
Kandal Steung
Prey Chhor
Sreysanthor
Preah Sdach
Siem Reap
Kampong Thom
Baphnom
Kampong Chhnang
Muk Kampoul
Kampong Trach
Reussey Keo
Neak Loeung
Prey Veng
Prek Kdam
Kampot
Orang Ov
Mong Reussey
Krakor
Chamkaleu
Chhouk
Kratie
Stoueng Trang
Kampong Cham
Prey Nob
Banteay Meanchey
Battambang
Ta Khmau
Kampong Tralach
Koh Sotin
Cheung Prey
Kamchaymear
Sithor Kandal
Boribo
Stong
Kampong Leng
Prey Kry
KHR’000
-
11,478,012
9,236,102
7,877,911
7,590,891
6,799,781
6,597,930
6,509,859
6,339,530
6,248,430
6,045,368
5,581,824
5,434,291
5,378,298
4,961,903
4,827,136
4,772,594
4,726,709
4,717,404
4,639,170
4,540,683
4,234,474
4,203,731
4,106,633
4,079,779
3,977,086
3,897,710
3,826,089
3,820,313
3,647,974
3,646,156
3,597,159
3,520,113
3,508,255
3,477,691
3,423,457
3,345,337
3,318,261
3,093,699
3,075,398
3,018,446
2,886,210
2,819,822
2,813,134
2,812,410
2,660,223
2,621,565
2,501,714
2,489,519
2,487,979
2,416,473
2,333,800
2,166,146
2,106,956
2,052,264
1,997,756
1,954,437
1,714,917
1,351,387
628,317
457,841
240,394,457
KHR’000
29,308
8,586,792
5,305,970
6,078,783
6,310,056
3,409,782
4,054,589
2,273,053
3,504,220
5,013,529
3,734,600
3,312,216
3,331,986
5,228,039
3,232,273
3,316,027
3,185,008
2,284,243
2,895,075
-
3,055,374
-
1,740,359
4,534,467
2,493,299
2,455,611
2,092,268
2,895,641
-
-
1,417,272
4,411,331
2,306,334
1,589,119
-
544,286
2,281,722
1,892,680
2,188,771
1,253,710
-
1,106,701
1,454,031
2,928,284
1,779,865
-
-
1,441,190
-
-
-
1,054,909
2,297,432
1,752,160
2,699,650
1,030,517
-
1,481,138
619,911
1,209,369
1,202,018
134,294,968
US$
-
2,812,549
2,263,196
1,930,387
1,860,056
1,666,204
1,616,743
1,595,163
1,553,426
1,531,103
1,481,345
1,367,759
1,331,608
1,317,887
1,215,855
1,182,832
1,169,467
1,158,223
1,155,943
1,136,773
1,112,640
1,037,607
1,030,074
1,006,281
999,701
974,537
955,087
937,537
936,122
893,892
893,447
881,440
862,561
859,656
852,166
838,877
819,735
813,100
758,074
753,589
739,634
707,231
690,963
689,325
689,147
651,856
642,383
613,015
610,027
609,649
592,128
571,870
530,788
516,284
502,883
489,526
478,911
420,220
331,141
153,962
112,188
58,905,773
US$
7,322
2,145,089
1,325,498
1,518,557
1,576,332
851,807
1,012,888
567,837
875,398
1,252,443
932,950
827,433
832,372
1,306,030
807,463
828,385
795,655
570,633
723,226
-
763,271
-
434,764
1,132,767
622,858
613,443
522,675
723,368
-
-
354,052
1,102,006
576,151
396,982
-
135,970
570,003
472,815
546,783
313,194
-
276,468
363,235
731,522
444,633
-
-
360,027
-
-
-
263,530
573,927
437,712
674,407
257,436
-
370,007
154,862
302,116
300,279
33,548,581
Secured
Unsecured
Secured
Unsecured
Secured
Unsecured
Secured
Unsecured
KHR’000
47,484,026
192,366,987
12,386
205,082
76,434
-
12,648
236,894
240,394,457
KHR’000
24,718,834
109,280,522
-
59,500
-
3,630
5,706
226,776
134,294,968
US$
11,635,391
47,137,218
3,035
50,253
18,729
-
3,099
58,048
58,905,773
US$
6,175,077
27,299,656
-
14,864
-
907
1,425
56,652
33,548,581
Interest receivables
Allowance for interest
receivables
Net interest receivables
Prepayments
Advances to supplier
Advances to employee
Others
KHR’000
5,039,127
(102,776)
4,936,351
519,260
497,855
18,995
37,261
6,009,722
KHR’000
3,164,973
(199,343)
2,965,630
236,718
616
3,993
302,083
3,509,040
US$
1,234,778
(25,184)
1,209,594
127,239
121,993
4,654
9,130
1,472,610
US$
790,650
(49,798)
740,852
59,135
154
998
75,464
876,603
Deferred tax assets
Deferred tax liabilities
At end of the year
Balance at beginning of year
Credited to income statement
Translation difference
Balance at end of the year
KHR’000
473,195
(65,373)
407,822
249,057
158,765
-
407,822
KHR’000
303,682
(54,625)
249,057
130,680
118,377
-
249,057
US$
115,951
(16,019)
99,932
62,218
38,903
(1,189)
99,932
US$
75,864
(13,646)
62,218
32,211
29,572
435
62,218
Balance at beginning of year
Income tax expense
Income tax paid
Translation difference
Balance at end of the year
KHR’000
1,748,087
3,946,031
(2,266,280)
-
3,427,838
KHR’000
551,084
2,099,618
(902,615)
-
1,748,087
US$
436,694
966,927
(555,325)
(8,345)
839,951
US$
135,835
524,511
(225,484)
1,832
436,694
Loans in Khmer Riel
Loans in US Dollars
2008
2.5% - 3.3%
1.8% - 3.3%
2007
3% - 3.5%
2% - 3.5%
2008 2007
8. LOANS TO CUSTOMERS (continued) 8. LOANS TO CUSTOMERS (continued)
(f) By locations: (g) By performance:
(h) By interest rate (per month):
The movement in the net deferred tax assets is as follows:
Standard loans:
Sub-standard loans:
Doubtful loans:
Loans loss:
9. OTHER ASSETS2008
2008
2008
2007
2007
2007
10. INCOME TAX (a) Deferred tax assets Deferred tax assets comprise:
(b) Provision for income tax
2008 2007
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Term deposits
Savings
(a) By maturity:
Within 1 month
2 to 3 months
4 to 12 months
(b) By currency:
Khmer Riel
US Dollars
KHR’000
-
254,872
254,872
254,872
-
-
254,872
34,390
220,482
254,872
KHR’000
107,029
908,617
1,015,646
909,632
89,514
16,500
1,015,646
288,897
726,749
1,015,646
US$
-
62,453
62,453
62,453
-
-
62,453
8,427
54,026
62,453
US$
26,737
226,984
253,721
227,238
22,362
4,121
253,721
72,170
181,551
253,721
Current income tax
Deferred tax assets
Income tax expense
KHR’000
3,946,031
(158,765)
3,787,266
KHR’000
2,099,618
(118,377)
1,981,241
US$
966,927
(38,903)
928,024
US$
524,511
(29,572)
494,939
Profit before
income tax
Income tax using
statutory rate
Non-deductible
expenses
Income tax
expense
KHR’000
15,278,030
3,055,606
731,660
3,787,266
KHR’000
9,579,288
1,915,858
65,383
1,981,241
US$
3,743,697
748,740
179,284
928,024
%
20
4.8
24.8
%
20
0.68
20.68
US$
2,393,027
478,606
16,333
494,939
Cost
At 1 January 2008
Additions
Disposals
Written off
At 31 December 2008
Less: Accumulated depreciation
At 1 January 2008
Charge for the year
Disposals
Written off
At 31 December 2008
Net book value
At 31 December 2008
At 31 December 2007
Office
Furniture
KHR’000
898,267
247,835
(28,132)
(2,716)
1,115,254
422,524
153,563
(21,411)
(2,350)
552,326
562,928
475,743
Motor
Vehicles
KHR’000
1,195,514
262,703
-
-
1,458,217
534,942
211,014
-
-
745,956
712,261
660,572
Motor-
cycles
KHR’000
137,041
2,128
(9,561)
-
129,608
120,663
3,364
(6,008)
-
118,019
11,589
16,378
Computers &
peripherals
KHR’000
738,688
198,173
(17,862)
(24,606)
894,393
509,015
147,429
(17,862)
(24,067)
614,515
279,878
229,673
Communication
equipment
KHR’000
62,876
51,148
(25,849)
-
88,175
47,522
13,452
(16,449)
-
44,525
43,650
15,354
Term deposits
3 months
6 months
12 months
Saving for staff (Unlimited)
Saving for customer (Unlimited)
US$
2.5%
5%
6.5%
6%
2%
KHR
3%
5.5%
8%
8%
2.5%
(c) By interest rates :
The above amounts are analysed as follows :
2008
2008
2008
2007
2007
2007
(c) Income tax expense
In accordance with Cambodian law, the Company has
an obligation to pay corporate income tax of either the
profit tax at the rate of 20% of taxable profits or the
minimum tax at 1% of gross revenues, whichever is
higher.
The reconciliation of current income tax computed
at the statutory tax rate of 20% to the income tax
expense shown in the income statement is as follows:
The calculation of taxable income is subject to the
review and approval of the tax authorities.
11. PROPERTY AND EQUIPMENT
US$
743,049
186,716
(19,947)
(6,695)
903,123
400,555
129,581
(15,126)
(6,473)
508,537
394,586
349,168
KHR’000
3,032,386
761,987
(81,404)
(27,322)
3,685,647
1,634,666
528,822
(61,730)
(26,417)
2,075,341
1,610,306
1,397,720
Total
12. DEPOSITS FROM CUSTOMERS
Interest rates (per annum)
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13. BORROWINGS
Credit Suisse Microfinance Fund Management Company
Responsibility SICAV Mikrofinanz-Fonds (LUX)
The Nederlandse-Financiering-Maatschappij voor Ontwikkelingslanden N.V.(FMO)
Dexia Micro Credit Fund/ Sub Fund BlueOrchard Debt
Oikocredit Ecumenical Development Cooperative Society U.A.
Global Commercial Micro-Finance Consortium Ltd.
Consorzio Etimos S.C
Calvert Social Investment Foundation
PRASAC Staff Company Ltd.
VDK Spaar Bank
Dual Return Fund SICAV
Belgian Investment Company for Developing Countries SA (BIO)
Impulse Microfinance Investment Fund
Finethics Microfinance SCA
EMF Microfinance Agmvk
Note
i
ii
iii
iv
v
vi
vii
viii
ix
x
xi
xii
xiii
xiv
US$
7,500,000
4,000,000
4,456,016
7,750,000
1,500,000
2,000,000
133,359
1,000,000
-
4,000,000
2,000,000
1,125,000
1,000,000
1,000,000
1,000,000
38,464,375
US$
6,000,000
3,500,000
3,047,964
2,550,000
2,212,935
2,000,000
383,900
300,000
202,348
-
-
-
-
-
-
20,197,147
KHR’000
30,607,500
16,324,000
18,185,000
31,627,750
6,121,500
8,162,000
544,237
4,081,000
-
16,324,000
8,162,000
4,591,125
4,081,000
4,081,000
4,081,000
156,973,112
KHR’000
24,018,000
14,010,500
12,201,000
10,207,650
8,858,380
8,006,000
1,536,750
1,200,900
810,000
-
-
-
-
-
-
80,849,180
2008 2007
Terms
Terms
Repayment
Repayment
Interest rate
Interest rate
Total credit
facilities
Total credit
facilities
3 years, maturing on :
First loan :
Second loan :
Third loan :
Fourth loan :
7 September 2010
9 November 2010
20 May 2011
28 November 2011
3 years, maturing on :
First loan :
Second loan :
Third loan :
Fourth loan :
Terms First loan:
Second loan:
Third loan:
3 years and 9 months, maturing on
1 October 2010.
9 years and 6 months, maturing on
1 October 2017.
4 years and 6 months, maturing on
1 October 2012.
Principal is due on the maturity date and interest
is paid semi-annually.
Principal is due on the maturity date and
interest is paid semi-annually.
First to third loan:
Fourth loan:
Interest rate is 8.6% per annum.
Interest rate is 9.5% per annum.
First to third loan:
Fourth loan:
Interest rate is 8.6% per annum.
Interest rate is 9.5% per annum.
Security
Security
These loans are unsecured.
These loans are unsecured.
Repayment First loan :
Second loan :
Third loan :
Six equal annual instalments of
principal repayment commencing on
1 April 2008 on semester basis and
interest is paid semi-annually.
Ten equal annual instalments of
principal repayment commencing on 1
April 2013 semi-annually and interest
is paid semi-annually.
Six equal annual instalments of
principal and interest repayment
commencing on 1 April 2010
semi-annually and interest is paid
semi-annually.
First loan :
Second loan :
Third loan :
Fourth loan :
Total :
First loan
Second loan
Third loan
Fourth loan
Total
7 September 2010
9 November 2010
5 December 2010
28 November 2011
Equivalent in KHR
First loan :
Second loan :
Third loan :
Total :
KHR12,201,000
KHR8,076,000
KHR6,056,000
KHR26,333,000
Movement
Movement
Beginning :
Disbursement :
Repayment :
Outstanding :
Beginning:
Disbursement:
Repayment:
Outstanding:
US$6,000,000
US$2,000,000
US$500,000
US$7,500,000
US$3,500,000
US$500,000
Nil
US$4,000,000US$4,000,000
US$1,500,000
US$1,500,000
US$500,000
US$7,500,000
Credit facilities
First loan :
Second loan :
Third loan :
Total :
US$3,000,000
US$2,000,000
US$1,500,000
US$6,500,000
US$1,000,000
US$500,000
US$2,000,000
US$500,000
US$4,000,000
(i) Credit Suisse Microfinance Fund Management Company
(ii) Responsibility SICAV Mikrofinanz-Fonds (LUX)
(ii) Responsibility SICAV Mikrofinanz-Fonds (LUX) (continued)
(iii) The Nederlandse- Financiering- Maatschappij voor Ontwikkelingslanden N.V. (FMO)
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Terms 5 years, maturing on : 1 November 2011.
Terms First loan :
Second loan :
4 years, maturing on 3 November 2010.
3 years and 11 months, maturing on
01 November 2010.
Terms First loan :
Second loan :
3 years, maturing on 6 April 2009.
2 years and 7 months, maturing on
6 April 2009.
Repayment First repayment of principal will be made within
18 months after the effective date (1 November
2006). The principal and interest repayment are
paid semi-annually.
Repayment Principal is due on the maturity date and interest is
paid semi-annually.
Repayment First loan :
Second loan :
Principal and interest repayment on
semi-annual basis.
Principal and interest repayment on
semi-annual basis.
Repayment First loan :
Second loan :
Principal at maturity date and
interest on semester basis.
Principal at maturity date and
interest on a quarterly basis.
Interest rate First loan :
Second loan :
Third loan :
The interest is paid at a fixed rate
of 6% per annum plus 6 months
fixed deposit rate published by NBC.
The interest is paid at a fixed
rate of 4%.
Interest rate is 6% per annum plus
3 months fixed deposit rate
published by NBC.
Repayment First loan :
Second to fourth :
Repayment of principal is paid
annually and interest on semi-
annual basis.
Principal is due on the maturity
date and interest on semi-annual
basis.
Security These loans are unsecured.
Security
Security
Security
Security
Security
These loans are unsecured.
These loans are unsecured.
These loans are unsecured.
These loans are unsecured.
These loans are unsecured.
Interest rate First loan :
Second loan :
Third loan :
Fourth loan :
The interest is paid at a rate of six-
month LIBOR plus 6% per annum.
Interest rate is 8.5 % per annum.
Interest rate is 8.9 % per annum.
Interest rate is 9 % per annum.
Total credit facilities US$2,000,000
Interest rate First loan :
Second loan :
Interest rate is 10.25% per annum.
Interest rate is 9.68% per annum.
Interest rate The interest is paid at a rate per annum of six month
US$ LIBOR plus 4.5%.
Interest rate First loan :
Second loan :
The interest rate is 7% per annum.
The interest rate is 8% per annum. Interest rate Interest rate is 9% per annum.
Terms 3 years, maturing on :
First loan :
Second loan :
Third loan :
Fourth loan :
17 July 2009
31 May 2011
27 June 2011
06 September 2011
Terms 3 years, maturing on :
First loan :
Second loan :
31 July 2009
1 August 2011
Movement
Movement
Movement
MovementBeginning :
Disbursement :
Repayment :
Outstanding :
Beginning :
Disbursement :
Repayment :
Outstanding :
Beginning :
Disbursement :
Repayment :
Outstanding :
Beginning :
Disbursement :
Repayment :
Outstanding :
Movement Beginning :
Disbursement :
Repayment :
Outstanding :
US$2,550,000
US$7,500,000
US$2,300,000
US$7,750,000
US$2,212,935
Nil
US$712,935
US$1,500,000
US$2,000,000
Nil
Nil
US$2,000,000
US$383,900
Nil
US$250,541
US$133,359
US$300,000
US$700,000
Nil
US$1,000,000
Creditfacilities
First loan :
Second loan :
Third loan :
Fourth loan :
Total :
US$750,000
US$3,000,000
US$2,000,000
US$2,500,000
US$7,750,000
Movement Beginning :
Disbursement :
Repayment:
Outstanding:
KHR12,201,000
KHR10,051,000
KHR4,067,000
KHR18,185,000
Total credit
facilities
First loan :
Second loan :
Total :
US$1,000,000
US$1,000,000
US$2,000,000
Total credit
facilities
First loan :
Second loan :
Total :
US$400,000
US$100,000
US$500,000
Credit
facilities
First loan :
Second loan :
Total :
US$300,000
US$700,000
US$1,000,000
(iv) Dexia Micro-Credit Fund/Sub Fund BlueOrchard Debt
(v) Oikocredit Ecumenical Development Cooperative Society U.A.
(vi) Global Commercial Microfinance Consortium Ltd.
(vii) Consorzio Etimos S.C
(viii) Calvert Social Investment Foundation
(iii) The Nederlandse- Financiering- Maatschappij voor Ontwikkelingslanden N.V. (FMO) (continued)
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Terms
Terms
Terms
Interest rate
Terms
Terms
Terms
3 years, maturing on 3 August 2011.
First loan :
Second loan :
3 years, maturing on 14 December 2011.
The interest is paid at a rate of 8.75% per annum.
3 years and 9 months, maturing on 31 December
2011.
2 years and 6 months, maturing on 30 October 2010.
1 year, maturing on 17 November 2009.
2 years and 6 months, maturing on
5 November 2010.
2 year maturing on 30 June 2010.
Repayment
Repayment
Repayment
Repayment
Repayment
Repayment
The repayment of principal is made on 3 August 2010
and 3 August 2011. Interest is paid on a quarterly
basis.
First loan :
Second loan :
Principal and interest are due on semi-annual basis.
Principal is due on the maturity date and interest
semi-annually.
Principal is due on the maturity date and interest on
semi-annual basis.
Two equal principal instalments are made on 14
December 2010 and on 14 December 2011 and
interest on a quarterly basis.
Principal is due on the maturity date
and interest semi-annual basis.
Principal and interest are paid on
semi-annual basis.
Security
Security
Security
Security
Security
Security
These loans are unsecured.
These loans are unsecured.
These loans are unsecured.
These loans are unsecured.
These loans are unsecured.
These loans are unsecured.
Interest rate
Interest rate
Interest rate
Interest rate
Interest rate
The interest rate is 8.35% per annum.
Interest rate 8.5% per annum.
The interest rate swaps 4 year plus 4.5% per annum.
Interest rate 8.75% per annum.
Interest rate 8.75% per annum.
Movement
Movement
Movement
Movement
Movement
Movement
Beginning :
Disbursement :
Repayment :
Outstanding :
Beginning :
Disbursement :
Repayment :
Outstanding :
Beginning :
Disbursement :
Repayment :
Outstanding :
Beginning :
Disbursement :
Repayment :
Outstanding :
Beginning :
Disbursement :
Repayment :
Outstanding :
Beginning :
Disbursement :
Repayment :
Outstanding :
Nil
US$4,000,000
Nil
US$4,000,000
Nil
US$2,000,000
Nil
US$2,000,000
Nil
US$1,000,000
Nil
US$1,000,000
Nil
US$1,500,000
US$375,000
US$1,125,000
Nil
US$1,000,000
Nil
US$1,000,000
Nil
US$1,000,000
Nil
US$1,000,000
Total credit
facilities
Total credit
facilities
Total credit
facilities
Total credit
facilities
Total credit
facilities
Total credit
facilities
US$4,000,000
First loan :
Second loan :
Total :
US$1,000,000
US$1,500,000
US$1,000,000
US$1,000,000
US$1,000,000
US$1,000,000
US$2,000,000
(ix) VDK Spaar Bank
(x) Dual Return Fund SICAV
(xii) Impulse Microfinance Investment Fund
(xii) Impulse Microfinance Investment Fund (continued)
(xiii) Finethics Microfinance SCA
(xiv) EMF Microfinance Agmvk
(xi) Belgian Investment Company for Developing Countries
SA (BIO)
The above amounts are analysed as follows:
From 3 to 12 months
From 1 to 5 years
Over 5 years
Khmer Riel
US Dollars
Khmer Riel
US Dollars
6.20% + 3-6 month rate
9.49% + 6 month
Libor rate
9.88% + 6 month rate
8.69% + 6 month
Libor rate
KHR’000
16,956,262
136,820,850
3,196,000
156,973,112
18,185,000
138,788,112
156,973,112
KHR’000
19,128,865
60,910,315
810,000
80,849,180
13,011,000
67,838,180
80,849,180
US$
4,154,928
33,526,305
783,142
38,464,375
4,456,016
34,008,359
38,464,375
US$
4,778,632
15,216,167
202,348
20,197,147
3,250,312
16,946,835
20,197,147
(a) By maturity :
(b) By currency :
(c) By interest rate (including withholding tax) :
2008
2008
2007
2007
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The details of shareholding are as follows:
The total authorised numbers of shares is 770,150
shares (2007: 270,400 shares) with a par value of KHR
20,000 per share (2007: KHR 20,000).
(i) Subordinated debt from the Royal Government
of Cambodia (“RGC”)
The amount of KHR34,674,673,914 consists of the
funds transferred by EC to RGC and transferred by
RGC to PRASAC as subordinated debt on 31 December
2004 with the terms and conditions of the agreement
as follows:
• Thefundistoberecordedas“SubordinatedDebt
” in the accounting records of PRASAC.
• PRASAC shall repay the total value of the
Subordinated Debt to RGC on the following terms and
conditions:
(a) The Subordinated Debt will not be
repayable to RGC unless PRASAC ceases to
provide credit to rural communities and micro
enterprises in Cambodia or unless PRASAC
elects at its own discretion to repay all or
part of the Subordinated Debt to RGC.
These represent excess payments by the shareholders
when the share capital was increased. The amount is due
to be returned to the shareholders. There is no formal
agreement between the Company and shareholders
for transferring back this excess payment.
Accrued expenses
Interest
Bonus/incentives
Accrued taxes
Withholding on others
Salary tax
Other payables
Others
Balance at beginning
of year
Additions during year
Payments
Translation difference
Balance at end of the
year
KHR’000
2,203,082
1,214,297
629,413
306,340
214,440
101,653
4,669,225
KHR’000
1,567,525
1,047,157
148,506
201,005
636,034
132,120
3,732,347
US$
539,838
297,549
154,230
75,065
52,546
24,909
1,144,137
US$
391,588
261,593
37,099
50,214
158,889
33,005
932,388
PSCo
BIO
DCG
FMO
LOLC
Oikocredit
(US$ equivalents)
Number of
shares
77,020
138,626
138,626
138,626
138,626
138,626
770,150
Number of
shares
13,520
51,376
51,376
51,376
51,376
51,376
270,400
Amount
KHR’000
1,540,400
2,772,520
2,772,520
2,772,520
2,772,520
2,772,520
15,403,000
3,774,320
Amount
KHR’000
270,400
1,027,520
1,027,520
1,027,520
1,027,520
1,027,520
5,408,000
1,350,987
Subordinated debt
from the Royal
Government of
Cambodia
Subordinated debt
from CRDF
KHR’000
34,674,673
10,982,904
45,657,577
KHR’000
34,674,673
10,982,904
45,657,577
US$
8,496,612
2,691,229
11,187,841
US$
8,662,172
2,743,668
11,405,840
KHR’000
1,518,410
1,022,471
(174,905)
-
2,365,976
KHR’000
877,536
673,048
(32,174)
-
1,518,410
US$
379,318
250,544
(42,858)
(7,250)
579,754
US$
216,302
168,136
(8,038)
2,918
379,318
Belgian Investment
Company for Developing
Countries SA (BIO)
Dragon Capital Group
Limited (DCG)
The Nederlandse
Financiering-
Maatschappij voor
Ontwikkelingslanden
N.V.(FMO)
Lanka ORIX LEASING
Company Ltd (LOLC)
Oikocredit Ecumenical
Development
Cooperative Society
U.A.
KHR’000
-
41,386
-
-
131,511
172,897
KHR’000
131,511
131,511
131,511
131,511
131,511
657,555
US$
-
10,141
-
-
32,225
42,366
US$
32,854
32,853
32,853
32,853
32,853
164,266
2008
2008
2008
2008
2008
2007
2007
2007
2007
2007
14. OTHER LIABILITIES
15. PROVISION FOR RETIREMENT BENEFITS
16. SHARE SUBSCRIPTION RECEIVED IN ADVANCE
17. SHARE CAPITAL
18. SUBORDINATED DEBT
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(b)
(c)
(a)
(b)
(a)
(b)
(c)
(c)
(d)
• TheSubordinatedDebtbearsnointerest.
(ii) Subordinated debt from Cambodia Rural
Development Foundation (“CRDF”)
In 2007, the proceeds of the sale (“the Fund”) of
Cambodia Rural Development Foundation (“CRDF”)’s
share transfer in the amount of KHR 10,982,904,400
was treated as Subordinated Debt with conditions as
follows:
• TheFundsshallbemadeavailabletoPRASACas
a perpetual subordinated debt as provided below and
shall be utilised solely for the purpose of the long-term
provision of micro-finance to communities and micro-
enterprises of the Kingdom of Cambodia.
• The Funds will be recorded as perpetual
“Subordinated Debt, CRDF Share Sale” (“SDCSS”) in
the accounting records of PRASAC with the following
conditions:
• TheSDCSSshallonlyberepayablebyPRASACto
CRDF in the following circumstances:
• IntheeventCRDFisdissolved,PRASACshallno
longer have the obligation to repay the SDCSS, and
the amount outstanding will be converted into a
special protected reserve in PRASAC’s accounts, not
distributable to shareholders. In case PRASAC is
dissolved due to insolvency, RGC shall be considered
owner of the funds.
On 12 December 2007, PRASAC obtained the
approval from the Central Bank to include:
• subordinateddebt (i) aboveasTier II in thenet
worth calculation, however, limited to 100% of base
net worth; and
In addition, the full amount of subordinated debt (ii)
can be considered tier II in the net worth calculation
until the end of 2008.
The Subordinated Debt is a non-distribut-
able fund.
The Subordinated Debt is considered as
“Tier II Capital” in the context of Article 15
of Prakas No. B700-006 on the licensing of
Micro-Finance Institutions dated 11 January
2000 and shall be included when calculating
the Capital Adequacy Ratio of PRASAC.
Subsequently, this was superseded by
the NBC letter dated 22 May 2007 which
recommended that PRASAC should
request permission from NBC to include
Subordinated Debt as Tier II Capital in
Capital Adequacy Ratio calculation. On 14
August 2007, PRASAC wrote a letter to NBC
requesting inclusion of Subordinated Debt
in the calculation of net worth.
The SDCSS will be booked into a separate
account in the balance sheet of PRASAC;
The full amount of the SDCSS shall be
included for the calculation of the net
worth as ‘Tier II Capital’ in the context of
the Calculation of Net Worth and for all
prudential ratio purposes, such as the
Capital Adequacy Ratio;
If PRASAC ceases to provide credit to
rural communities and micro enterprises in
Cambodia. If CRDF forms the view that
PRASAC MFI has ceased to provide credit
to rural communities and micro enterprises
in Cambodia, CRDF may call upon PRASAC
to repay the SDCSS. However, CRDF may
not call upon PRASAC to repay the SDCSS
without such allegations being first
confirmed by an audit (the “Audit”) to be
carried out by a private international audit
firm. The Audit will be carried out at the
initiative of and will be financed by
PRASAC;
If PRASAC does not approve the transfer
of the SDCSS to a third party proposed by
CRDF pursuant to clause 2.2. (d) of this
Agreement;
If PRASAC decides at any time and at its sole
discretion to repay the SDCSS in full.
The SDCSS shall bear no interest.
Any transfer of the SDCSS to a third party
should be approved by all the parties to this
agreement.
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(a)
(b)
(c)
(d)
(e)
On 19 September 2008, CRDF and the MEF signed
agreement with the terms and conditions as follows:
• PRASACwill continue touseCRDFFunds solely
for the purpose of the long-term provision of
micro-finance to individuals, rural and urban
communities, and micro-enterprises in Cambodia.
• The CRDF Funds shall be recorded as
Subordinated Debt (“SD”) in the accounting records of
PRASAC.
• PRASAC shall comply with the following terms
and conditions:
• The SD shall bear no interest, but the value of
this Subordinated Debt shall be protected, to the
extent that annual allocation shall be made to a
Special Reserve based on the inflation rate published
by National Institute of Statistic (NIS), capped at 5%
p.a. As a condition for the non interest bearing SD,
PRASAC is obliged to strictly adhere to Article 21 of
its MoA. This “Special Reserve Account” will be
non-distributable to the shareholders.
The SD will not be repaid to the MEF
unless PRASAC ceases to provide credit to
individuals, rural and urban communities,
and micro-enterprises in Cambodia as
shall be evidenced in accordance with the
provisions of (d) hereunder or unless
PRASAC elects at its own discretion to repay
all or part of the SD to MEF.
The SD is a non-distributable fund, i.e.
the SD cannot be distributed to any party,
except as stated in condition (d) below.
The SD will be considered as ‘Tier II Capital’
and shall be included in the calculation of
the net worth of PRASAC as per the
regulations of the National Bank of
Cambodia.
PRASAC is entitled to use part or all of the
Subordinated Debt for facilitating the
extension of short and long term credit to
individuals, rural and urban communities
and micro-enterprises in Cambodia.
If MEF forms the view that PRASAC has
ceased to provide credit to individuals,
rural and urban communities, and micro-
enterprises in Cambodia or has violated
its approved Memorandum and Articles of
Association (MoA), with respect to Article
2: vision, mission and business objectives,
Article 21: Profit or loss restrictions on
declaring dividend or has amended the
MoA in violation of Article 24, paragraph 4,
MEF may call upon PRASAC to repay the SD.
However, MEF may not call upon PRASAC
to repay the SD without such allegations
being first confirmed by an Audit to be
carried out by a private internationally
recognised audit firm.
In the unlikely event the individuals, rural and
urban communities, and micro-enterprises
in Cambodia to which PRASAC extended
credit, are not able to honour debts, MEF
agrees to these debts being offset against
and thereby reducing the SD, to the extent
that the losses of those credits cannot be
covered by the accumulated own capital of
PRASAC.
(f)
Group loans
Individual loans
Placements with banks
KHR’000
2,268,999
53,468,733
72,331
55,810,063
KHR’000
2,456,319
32,672,722
99,174
35,228,215
US$
555,991
13,101,870
17,724
13,675,585
US$
613,619
8,162,059
24,775
8,800,453
Borrowings
Deposits from
customers
KHR’000
10,696,925
27,567
10,724,492
KHR’000
5,433,585
38,485
5,472,070
US$
2,621,153
6,755
2,627,908
US$
1,357,378
9,614
1,366,992
Penalty income
Foreign exchange gain
Loan loss recovered
Other income
Gain on disposal of
property and equipment
KHR’000
222,140
247,712
247,608
235,291
38,905
991,656
KHR’000
152,858
193,006
267,617
85,274
32,202
730,957
US$
54,433
60,699
60,673
57,655
9,533
242,993
US$
38,186
48,215
66,854
21,303
8,044
182,602
2008
2008
2008
2007
2007
2007
19. INTEREST INCOME
20. INTEREST EXPENSES
21. OTHER OPERATING INCOME
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US$
3,743,697
207,686
129,581
448,522
(9,533)
222
4,520,175
(122,458)
(26,041,490)
(612,762)
(186,418)
229,571
(22,213,382)
(555,325)
(22,768,707)
US$
2,393,027
160,098
128,656
178,942
(8,044)
-
2,852,679
55,029
(11,211,272)
373,591
9,736
321,960
(7,598,277)
(225,484)
(7,823,761)
CO
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Fee on borrowings
Fee on group loans
KHR’000
118,108
209
118,317
KHR’000
147,686
(14,098)
133,588
US$
28,941
51
28,992
US$
36,894
(3,522)
33,372
Profit before income tax
Adjustments for:
Provision for retirement benefits
Depreciation
Provision for bad and doubtful loans
Gain on disposals of property and equipment
Property and equipment written off
Operating profit before changes in operating assets and liabilities
Decrease/(increase) inoperating assets:
Statutory deposits
Loans to customers
Other assets
Increase/(decrease) in operating liability:
Deposits from customers
Other liabilities
Cash used in operations
Income tax paid
Net cash used in operating activities
KHR’000
15,278,030
847,566
528,822
1,830,417
(38,905)
905
18,446,835
(499,750)
(106,275,319)
(2,500,682)
(760,774)
936,878
(90,652,812)
(2,266,280)
(92,919,092)
KHR’000
9,579,288
640,874
515,008
716,305
(32,202)
-
11,419,273
220,280
(44,878,721)
1,495,484
38,975
1,288,807
(30,415,902)
(902,615)
(31,318,517)
Salaries and staff
benefits
Rental
Fuel for cars and
generators
Other tax expenses
Marketing and
promotions
Management
advisory fees
Professional fees
Depreciation
Office supplies
Printing and stationery
Transportation
Per diem and incident
travel
Communications
Maintenance
Training
Others
KHR’000
17,967,981
1,796,050
1,627,847
2,269,026
856,940
223,942
606,389
528,822
885,199
421,290
480,182
332,810
259,272
206,021
274,054
601,527
29,337,352
KHR’000
12,319,074
1,211,468
1,145,144
949,192
710,548
704,524
534,611
515,008
454,742
367,402
343,467
332,059
183,490
83,076
67,754
136,362
20,057,921
US$
4,402,838
440,101
398,884
555,998
209,983
54,874
148,588
129,581
216,907
103,232
117,663
81,551
63,531
50,483
67,154
147,397
7,188,765
US$
3,077,460
302,640
286,071
237,120
177,504
175,999
133,553
128,656
113,600
91,782
85,802
82,953
45,838
20,753
16,926
34,065
5,010,722
2008
2008 2007
2008
2007
2007
22. FEE AND COMMISSION EXPENSES
23. OPERATING AND OTHER EXPENSES
24. GRANT INCOME
Grant income represents a grant received from the
European Community in order to support small loans
to establish operational access to financial services for
farmers and villagers in ECOSORN target areas; Siem
Reap, Battambang and Banteay Meanchey province.
25. NET CASH FLOWS FROM OPERATING ACTIVITIES
64
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Cash on hand
Deposits & placements
with banks
KHR’000
1,870,985
794,586
2,665,571
KHR’000
2,728,695
7,925,102
10,653,797
US$
458,462
194,704
653,166
US$
681,662
1,979,791
2,661,453
2008 2007
The guidelines and policies adopted by the Company
to manage the risks that arise in the conduct of their
business activities are as follows:
(a) Credit risk
Credit risk is the potential loss of revenue and principal
losses in the form of specific provisions as a result of
defaults by the borrowers or counterparties through its
lending and investing activities.
The primary exposure to credit risk arises through its
loans to customers. The amount of credit exposure
in this regard is represented by the carrying amounts
of the assets on the balance sheet. The lending
activities are guided by the Company’s credit policy to
ensure that the overall objectives in the area of lending
are achieved; i.e., that the loans portfolio is strong and
healthy and credit risks are well diversified. The credit
policy documents the lending policy, collateral policy
and credit approval processes and procedures
implemented to ensure compliance with NBC
Guidelines.
The Company holds collateral against loans to
customers in the form of mortgage interests over
property and guarantees. Estimates of fair value are
based on the value of collateral assessed at the time of
borrowing, and generally are not updated except when
a loan is individually assessed as doubtful.
(b) Operational risk
The operational risk losses which would result from
inadequate or failed internal processes, people and
systems or from external factors is managed through
established operational risk management processes,
proper monitoring and reporting of the business
activities by control and support units which are
independent of the business units and oversight
provided by the management.
The operational risk management entail the
establishment of clear organisational structure, roles
and control policies. Various internal control policies
and measures have been implemented. These include
the establishment of signing authorities, defining
system parameters controls, streamlining procedures
and documentation. These are reviewed continually
to address the operational risks of its micro-finance
business.
(c) Market risk
Market risk is the risk of loss arising from adverse
movement in the level of market prices or rates, the
two key components being foreign currency exchange
risk and interest rate risk.
Market risk arising from the trading activities is
controlled by marking to market the trading positions
against their predetermined market risk limits.
(i) Foreign currency exchange risk
Concentration of currency risk
The aggregate amounts of assets and liabilities, by
currency denomination, are as follows:
26. CASH AND CASH EQUIVALENTS
27. FINANCIAL RISK MANAGEMENT
The Company is exposed to foreign exchange
risk arising from various currency exposures,
primarily with respect to the US$. Foreign
exchange risk arises from future commercial
transactions and recognised assets and liabilities.
The Company has maintained a minimum
foreign currency exposure ratio in accordance
with guidelines issued by National Bank of
Cambodia. Management does not enter into
currency hedging transactions since it considers
that the cost of such instruments outweighs
the potential risk of exchange rate fluctuations.
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31 December 2008
Assets
Cash on hand
Deposits and placements with banks
Statutory deposits
Loans to customers
Other assets
Total financial assets
Liabilities
Deposit from customers
Borrowings
Other liabilities
Provision for income tax
Provision for retirement benefits
Share subscription received in advance
Total financial liabilities
Net asset/(liability) position
31 December 2007
Total assets
Total liabilities
Net asset/(liability) position
KHR
1,115,963
393,189
824,390
103,790,843
3,054,129
109,178,514
34,390
18,185,000
1,471,238
3,427,838
-
131,511
23,249,977
85,928,537
77,481,558
16,977,559
60,503,999
KHR equivalent
US$
755,022
401,397
-
132,705,387
2,955,593
136,817,399
220,482
138,788,112
3,197,987
-
2,365,976
41,386
144,613,943
(7,796,544)
69,057,247
72,543,666
(3,486,419)
Total
1,870,985
794,586
824,390
236,496,230
6,009,722
245,995,913
254,872
156,973,112
4,669,225
3,427,838
2,365,976
172,897
167,863,920
78,131,993
146,538,805
89,521,225
57,017,580
31 December 2008
Variable rate instruments
Cash flow sensitivity
31 December 2007
Variable rate instruments
Cash flow sensitivity
150 bp
increase
KHR’000
(305,184)
(305,184)
(389,204)
(389,204)
150 bp
decrease
KHR’000
(305,184)
(305,184)
(389,204)
(389,204)
(ii) Interest rate risk
Interest rate risk refers to the volatility in net interest income
as a result of changes in the levels of interest rate and shifts
in the composition of the assets and liabilities. The exposure
to interest rate risk relate primarily to its loans and bank
deposits.
Since the majority of financial assets are short-term and the
interest rates are subject to change with the market rates,
the company does not use derivative financial instruments
to hedge such risk. However, the Company’s loan terms are
not more than 2 years which can reset interest rate in case
of market interest rate increase.
Cash flow sensitivity analysis for variable-rate instruments
The change of 150 basis points (“bp”) in interest rates at
the reporting date would have increased (decreased) equity
and income statement by the amounts shown below. This
analysis assumes that all other variables remain the same.
The analysis is performed on the same basis for 2007.
The following table indicates the
effective interest rates at the balance
sheet date and the periods in which the
financial instruments re-price or mature,
whichever is earlier.
Income statement
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LIGH
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2008
Assets
Cash on hand
Deposits and placements with banks
Statutory deposits
Loans to customers
- Performing
- Non performing
- Allowance
Other assets
Deferred tax assets
Liabilities
Deposits from customers
Borrowings
Other liabilities
Provision for income tax
Provision for retirement benefits
Share subscription received in advance
Maturity gap
2007
Assets
Cash on hand
Deposits and placements with banks
Statutory deposits
Loans to customers
- Performing
- Non performing
- Allowance
Other assets
Deferred tax assets
Liabilities
Deposits from customers
Borrowings
Provision for retirement benefits
Other liabilities
Provision for income tax
Share subscription received in advance
Maturity gap
Up to
1 month
KHR’000
592,811
-
2,594,092
282,810
(264,857)
-
-
3,204,856
254,872
-
-
-
-
-
254,872
2,949,984
Up to
1 month
KHR’000
48,549
-
1,828,100
229,800
(249,406)
-
-
1,857,043
909,632
-
-
-
-
-
909,632
947,411
1 – 3
months
KHR’000
-
-
13,059,020
19,451
(201,467)
-
-
12,877,004
-
-
-
-
-
-
-
12,877,004
1 – 3
months
KHR’000
-
-
9,576,391
20,982
(156,331)
-
-
9,441,042
89,514
-
-
-
-
-
89,514
9,351,528
3 – 12
months
KHR’000
-
-
111,526,145
173,681
(1,734,064)
-
-
109,965,762
-
16,956,262
-
-
-
-
16,956,262
93,009,500
3 – 12
months
KHR’000
-
-
75,745,163
29,984
(1,138,486)
-
-
74,636,661
16,500
19,128,865
-
-
-
-
19,145,365
55,491,296
1 – 5
years
KHR’000
-
-
112,671,756
67,502
(1,697,839)
-
-
111,041,419
-
136,820,850
-
-
-
-
136,820,850
(25,779,431)
1 – 5
years
KHR’000
-
-
46,849,702
14,846
(699,417)
-
-
46,165,131
-
60,910,315
-
-
-
-
60,910,315
(14,745,184)
Over 5
years
KHR’000
-
770,150
-
-
-
-
-
770,150
-
3,196,000
-
-
-
-
3,196,000
(2,425,850)
Over 5
years
KHR’000
-
270,400
-
-
-
-
-
270,400
-
810,000
-
-
-
-
810,000
(539,600)
Non-interest
sensitive
KHR’000
1,870,985
201,775
54,240
-
-
-
6,009,722
407,822
8,544,544
-
-
4,669,225
3,427,838
2,365,976
172,897
10,635,936
(2,091,392)
Non-interest
sensitive
KHR’000
2,728,695
7,876,553
54,240
-
-
-
3,509,040
249,057
14,417,585
-
-
1,518,410
3,732,347
1,748,087
657,555
7,656,399
6,761,186
Total
KHR’000
1,870,985
794,586
824,390
239,851,013
543,444
(3,898,227)
6,009,722
407,822
246,403,735
254,872
156,973,112
4,669,225
3,427,838
2,365,976
172,897
167,863,920
78,539,815
Total
KHR’000
2,728,695
7,925,102
324,640
133,999,356
295,612
(2,243,640)
3,509,040
249,057
146,787,862
1,015,646
80,849,180
1,518,410
3,732,347
1,748,087
657,555
89,521,225
57,266,637
Weighted average
interest
%
2%
3%
Weighted average
interest
%
(ii) Interest rate risk (continued)
27. FINANCIAL RISK MANAGEMENT (Continued)
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(d) Liquidity risk
Liquidity risk relates to the ability to maintain sufficient liquid assets to meet its financial commitments and obligations
when they fall due at a reasonable cost.
In addition to full compliance of all liquidity requirements, the management of the Company closely monitors all
inflows and outflows and the maturity gaps through periodical reporting. Movements in loans and customers’ deposits
are monitored and liquidity requirements adjusted to ensure sufficient liquid assets to meet its financial commitments
and obligations as and when they fall due.
The following table provides an analysis of the financial assets and liabilities of the Company into relevant maturity
groupings based on the remaining periods to repayment.
27. FINANCIAL RISK MANAGEMENT (Continued)
2008
Assets
Cash on hand
Deposits and placements with banks
Statutory deposits
Loans to customers
- Performing
- Non performing
- Allowance
Other assets
Deferred tax assets
Liabilities
Deposits from customers
Borrowings
Other liabilities
Provision for income tax
Provision for retirement benefits
Share subscription received in advance
Maturity gap
Up to
1 month
KHR’000
1,870,985
794,586
-
2,594,092
282,810
(264,857)
4,960,022
-
10,237,638
254,872
-
1,920,870
59,220
-
-
2,234,962
8,002,676
1 – 3
months
KHR’000
-
-
-
13,059,020
19,451
(201,467)
28,538
-
12,905,542
-
-
1,558,079
3,368,618
-
-
4,926,697
7,978,845
3 – 12
months
KHR’000
-
-
-
111,526,145
173,681
(1,734,064)
634,091
-
110,599,853
-
16,956,262
1,088,626
-
-
172,897
18,217,785
92,382,068
1 – 5
years
KHR’000
-
-
-
112,671,756
67,502
(1,697,839)
387,071
-
111,428,490
-
136,820,850
101,650
-
-
-
136,922,500
(25,494,010)
Over 5
years
KHR’000
-
-
-
-
-
-
-
-
-
-
3,196,000
-
-
-
-
3,196,000
(3,196,000)
No
fixed terms
KHR’000
-
-
824,390
-
-
-
-
407,822
1,232,212
-
-
-
-
2,365,976
-
2,365,976
(1,133,764)
Total
KHR’000
1,870,985
794,586
824,390
239,851,013
543,444
(3,898,227)
6,009,722
407,822
246,403,735
254,872
156,973,112
4,669,225
3,427,838
2,365,976
172,897
167,863,920
78,539,815
2007
Assets
Cash on hand
Deposits and placements with banks
Statutory deposits
Loans to customers
- Performing
- Non performing
- Allowance
Other assets
Deferred tax assets
Liabilities
Deposits from customers
Borrowings
Provision for retirement benefits
Other liabilities
Provision for income tax
Share subscription received in advance
Maturity gap
Up to
1 month
KHR’000
2,728,695
7,925,102
-
1,828,100
229,800
(249,406)
2,971,132
-
15,433,423
909,632
-
-
2,003,705
42,693
-
2,956,030
12,477,393
1 – 3
months
KHR’000
-
-
-
9,576,391
20,982
(156,331)
24,309
-
9,465,351
89,514
-
-
857,528
1,705,394
-
2,652,436
6,812,915
3 – 12
months
KHR’000
-
-
-
75,745,163
29,984
(1,138,486)
339,150
-
74,975,811
16,500
19,128,865
-
871,114
-
657,555
20,674,034
54,301,777
1 – 5
years
KHR’000
-
-
-
46,849,702
14,846
(699,417)
174,449
-
46,339,580
-
60,910,315
-
-
-
-
60,910,315
(14,570,735)
Over 5
years
KHR’000
-
-
-
-
-
-
-
-
-
-
810,000
-
-
-
-
810,000
(810,000)
No
fixed terms
KHR’000
-
-
324,640
-
-
-
-
249,057
573,697
-
-
-
1,518,410
-
-
-
1,518,410
(944,713)
Total
KHR’000
2,728,695
7,925,102
324,640
133,999,356
295,612
(2,243,640)
3,509,040
249,057
146,787,862
1,015,646
80,849,180
1,518,410
3,732,347
1,748,087
657,555
89,521,225
57,266,637
68
AU
DIT
ED F
INA
NC
IAL
STA
TEM
ENTS
AU
DITED
FINA
NC
IAL STA
TEMEN
TSC
ON
TAC
T US
AB
OU
T PRA
SAC
MFI LTD
OW
NER
SHIP A
ND
GO
VER
NA
NC
ER
EPOR
T HIG
HLIG
HTS
31. COMPARATIVE FIGURES
The following comparative figures have been
reclassified to conform with the current year
presentation.
Assets
Statutory deposits
Deposits and placements with bank
Current account with NBC
Other assets
Liabilities
Other liabilities
Provision for income tax
Income statement
Operating income
Loan loss recovered
Provision for bad and doubtful loans
Loan loss recovered
As
reclassified
KHR’000
324,640
7,925,102
-
3,509,040
11,758,782
3,732,347
1,748,087
5,480,434
730,957
-
730,957
716,305
-
716,305
As
previously
presented
KHR’000
-
76,887
8,185,531
3,496,364
11,758,782
3,775,040
1,705,394
5,480,434
463,340
267,617
730,957
448,688
267,617
716,305
30. FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIESThe aggregate fair values of financial assets and liabilities
carried on the balance sheet are approximately equal to
their carrying values as at 31 December 2008.
Board of Directors:
Fees and related
expenses
Salary and other
benefits
Interest expenses:
The Nederlandse
Financiering-
Maatschappij voor
Ontwikkelingslanden
N.V.(FMO)
Oikocredit
Ecumenical
Development
Cooperative Society
U.A.
PRASAC Staff
Company Ltd.
Belgian Investment
Company for
Developing Countries
SA (BIO)
KHR’000
26,751
1,836,424
1,863,175
1,564,466
667,610
58,830
321,156
2,612,062
KHR’000
26,236
1,227,095
1,253,331
819,626
860,085
89,100
-
1,768,811
US$
6,555
449,994
456,549
383,354
163,590
14,416
78,695
640,055
US$
6,554
306,544
313,098
204,753
214,860
22,258
-
441,871
2008 2007
29. RELATED PARTIES TRANSACTIONS
The Company had significant related party transactions during the year as follows:
(e) Capital management
(i) Regulatory capital
(ii) Capital allocation
(a) Lease commitments
(b) Taxation contingencies
The Company’s lead regulator, the National Bank of Cambodia (“NBC”), sets and monitors capital requirements for the Company as a whole.
The Company’s policy is to maintain a strong capital base so as to maintain market confidence and to sustain further development of the business. The impact of the level of capital on shareholders’ return is also recognised and the Company recognised the need to maintain a balance between the higher returns that might be possible with greater gearing and advantages and security afforded by a sound capital position.
The Company and its individually regulated operations have complied with all externally imposed capital requirements throughout the year.
The allocation of capital between specific operations and activities is, to a large extent, driven by optimisation of the return achieved on the capital allocated. The amount of capital allocated to each operation or activity is based primarily upon the regulatory capital.
The Company has lease commitments for the lease of its headquarters and provincial offices as follows :
28. COMMITMENTS AND CONTINGENCIES
Within 1 year
1 to 5 years
KHR’000
1,251,325
793,299
2,044,624
KHR’000
977,283
906,225
1,883,508
US$
306,622
194,388
501,010
US$
244,138
226,386
470,524
2008 2007
The taxation system in Cambodia is relatively new and is characterised by numerous taxes and frequently changing legislation, which is often unclear, contradictory, and subject to interpretation. Often, differing interpretations exist among numerous taxation authorities and jurisdictions. Taxes are subject to review and investigation by a number of authorities, who are enabled by law to impose severe fines, penalties and interest charges.
These facts may create tax risks in Cambodia substantially more significant than in other countries. Management believes that it has adequately provided for tax liabilities based on its interpretation of tax legislation. However, the relevant authorities may have differing interpretations and the effects could be significant.
69
CONTACT US
OFFICE NETWORK WITH CONTACT ADDRESS
OUTREACH HIGHLIGHT WITH OPERATION MAP
7279
Prampir Village, Kampong Cham Commune,
Kampong Cham District, Kampong Cham Province.
Contact Person : Mr. Em Samnga
Contact Phone : 012 777 611 / 099 455 377
Email : [email protected]
Website : www.prasac.com.kh
CO
NTA
CT
US
PRASAC MICROFINANCE INSTITUTION LIMITED
WITH CONTACT ADDRESSOFFICE NETWORK
Nº 25, St 294&57, Boeung Kengkang1,
Chamkarmon, Phnom Penh, Cambodia.
P.O.Box : 2412
Tel : (855) 23 220 102 / 213 642
Fax : (855) 23 216 362
Email : [email protected]
Website : www.prasac.com.kh
Prampir Village, Kampong Cham Commune,
Kampong Cham District, Kampong Cham Province.
Contact Person : Mr. Phat Pheth
Contact Phone : 016 951 971 / 099 455 366
Website : www.prasac.com.kh
Thnal Beak Village, Svay Teap Commune,
Chamkarleu District, Kampong Cham Province.
Contact Person : Mr. Ly Kim Horn
Contact Phone : 042 390 017 / 012 992 373 / 099 455 373
Email : [email protected]
Website : www.prasac.com.kh
Boeng Deang Village, Prek Kak Commune,
Stoeung Trang District, Kampong Cham Province.
Contact Person : Mr. Dyna Ponnrak
Contact Phone : 012 350 646 / 097 766 9766
Website : www.prasac.com.kh
Slaeng Village, Chey Vien Commune,
Prey Chhor District, Kampong Cham Province.
Contact Person : Mr. Khut Sophea
Contact Phone : 023 351 391 / 015 677 966 / 099 455 244
Email : [email protected]
Website : www.prasac.com.kh
SUB BRANCH KAMPONG SIEM
SUB BRANCH CHAMKALEU
SERVICE OFFICE STOEUNG TRANG
SUB BRANCH PREY CHHOR
HEAD OFFICE
KAMPONG CHAM BRANCH
Daeum Sdau Village, Pongro Commune,
Koh Soutin District, Kampong Cham Province.
Contact Person : Mr. Chann Ratha
Contact Phone : 023 358 478 / 017 312 482 / 099 455 327
Email : [email protected]
Website : www.prasac.com.kh
Prek Sandek Village, Prek Changkran Commune,
Sithorkandal District, Prey Veng Province.
Contact Person : Mr. Heng Chanvirotha
Contact Phone : 012 543 427 / 099 455 253
Website : www.prasac.com.kh
Skon Village, Soutip Commune,
Cheung Prey District, Kampong Cham Province
Contact Person : Mr. Eav Sophin
Contact Phone : 042 393 334 / 011 901 186 / 012 895 364
Email : [email protected]
Website : www.prasac.com.kh
Phaav Village, Phaav Commune,
Batheay District, Kampong Cham Province.
Contact Person : Mr. Rann Vannak
Contact Phone : 012 448 667 / 099 435 316
Website : www.prasac.com.kh
SUB BRANCH KOH SOTIN
SERVICE OFFICE SITHORKANDAL
SUB BRANCH CHEUNG PREY
SUB BRANCH BATHEAY
Santey Village, Prek Pou Commune,
Srey Santhor District, Kampong Cham Province.
Contact Person : Mr. Sok Theavy
Contact Phone : 042 390 016 / 097 94 34 661 / 099 455 033
Email : [email protected]
Website : www.prasac.com.kh
Thlok Chrov Village, Khchao Commune,
Korng Meas District, Kampong Cham Province.
Contact Person : Mr. Chea Sophorn
Contact Phone : 012 300 853 / 099 455 033
Email : [email protected]
Website : www.prasac.com.kh
SUB BRANCH SREY SANTHOR
POST SERVICE THLOK CHROV
AB
OU
T PR
ASA
C M
FI L
TDO
WN
ERSH
IP A
ND
GO
VER
NA
NC
EA
UD
ITED
FIN
AN
CIA
L ST
ATE
MEN
TR
EPO
RT
HIG
HLI
GH
TS
72
CO
NTA
CT U
S
Cheung Lorng Village, Suong Commune,
Tbong Khmum, Kampong Cham Province.
Contact Person : Mr. Nhek Poly
Contact Phone : 042 390 013 / 012 766 846
Email : [email protected]
Website : www.prasac.com.kh
Cheung Lorng Village, Suong Commune,
Thong Khmum Distict, Kampong Cham Province.
Contact Person : Mr. Chhay Vandet
Contact Phone : 012 781 861 / 099 455 454
Website : www.prasac.com.kh
Trapeang Reusey Village, Roka Popram Commune,
Tbong Khmum District, Kampong Cham Province.
Contact Person : Mr. In Sothy
Contact Phone : 012 631 413 / 099 455 447
Website : www.prasac.com.kh
Lekh Bei Village, Ampil Tapok Commune,
Ouraing Ov District, Kampong Cham Province.
Contact Person : Mr. Phin Sary
Contact Phone : 011 741 299 / 017 441 407 / 099 455 388
Website : www.prasac.com.kh
Chrouy Thmor Village, Chhloung Commune,
Chhloung District, Kratie Province.
Contact Person : Mr. Khuon Vannak
Contact Phone : 011 754 503 / 099 455 400
Email : [email protected]
Website : www.prasac.com.kh
Pou Sruk Village, Kaong Kang Commune,
Ponhea Kraek District, Kampong Cham Province.
Contact Person : Mr. Pel Taing Eng
Contact Phone : 012 661 636 / 099 455 499
Email : [email protected]
Website : www.prasac.com.kh
Memut Village, Memut Commune, Memut District.
Contact Person : Mr. Tith Kamrong
Contact Phone : 012 757 156 / 099 455 433
Email : [email protected]
Website : www.prasac.com.kh
SUB BRANCH TBONG KHMUM
SERVICE OFFICE TRA PENG REUSEY
SUB BRANCH ORAING OV
SUB BRANCH CHHLOUNG
SUB BRANCH PONHEAKRAEK
SUB BRANCH MEMOT
TBONG KMUM BRANCH
Prey Kry Village, Prey Kry Tbong Commune,
Chol Kiri District, Kampong Chhnang Province.
Contact Person : Mr. Meou Pholly
Contact Phone : 015 262 624 / 026 393 902 / 099 455 071
Email : [email protected]
Website : www.prasac.com.kh
POST SEVICE PREY KRYPsa Veng Village, Kratie Commune,
Kratie District, Kratie Province.
Contact Person : Mr. Eang Chhayly
Contact Phone : 012 597 784 / 099 455 464
Email : [email protected]
Website : www.prasac.com.kh
Srae Tachey Village, Akphivoadth Commune,
Tuek Phos District, Kampong Chhnang Province.
Contact Person : Men Samnang
Contact Phone : 012 597 154
Website : www.prasac.com.kh
Ponley Village, Ponley Commune,
Baribo District, Kampong Chhnang Province.
Contact Person : Mr. Ung Cheav Kong
Contact Phone : 052 399 023 / 012 558 660
Email : [email protected]
Website : www.prasac.com.kh
Kampong Boeng Village, Kampong Hav Commune,
Kampong Leng District, Kampong Chhnang Province.
Contact Person : Mr. Tek Sam Eth
Contact Phone : 017 90 80 80
Website : www.prasac.com.kh
Ta Ak Village, Peani Commune, Kampong Tralach District,
Contact Person : Mr. Lem Sina
Contact Phone : 026 393 922 / 012 385 065 / 011 816 281
Email : [email protected]
Website : www.prasac.com.kh
SUB BRANCH KRATIE
POST SERVICE OFFICE TEK PHOS
SUB BRANCH BORIBO
SUB BRANCH KAMPONG LENG
SUB BRANCH KAMPONG TRALACH
Tuol Kralanh Village, Kampong Chhnang Commune,
Kampong Chhnang District, Kampong Chhang.
Contact Person : Mr. Sor Sarik
Contact Phone : 026 988 719 / 012 341 368
Email : [email protected]
Website : www.prasac.com.kh
Toul Kralanh Village, Kampong Chhnang Commune,
Kampong Chhnang District, Kampong Chhnang Province.
Contact Person : Mr. Muy Thet
Contact Phone : 012 410 709 / 011 228 218
Website : www.prasac.com.kh
SUB BRANCH ROLEAPHIE
KAMPONG CHHNANG BRANCH
National Road Nº 5, Timuoy Village, Chrang Chamras,
Reusey Keo District, Phnom Penh.
Contact Person : Mr. Pheng Chantivea
Contact Phone : 023 350 071 / 012 869 492
Email : [email protected]
Website : www.prasac.com.kh
REUSEY BRANCH
AB
OU
T PRA
SAC
MFI LTD
OW
NER
SHIP A
ND
GO
VER
NA
NC
EA
UD
ITED FIN
AN
CIA
L STATEM
ENT
REPO
RT H
IGH
LIGH
TS
73
CO
NTA
CT
US
National Road Nº 5, Timuoy village, Chrang Chamras,
Reusey Keo district, Phnom Penh
Contact Person : Mr. Tiv Khunthea
Contact Phone : 011 887 894 / 012 683 965
Website : www.prasac.com.kh
Chong Bangkoul village, Baek Chan commune,
Angk Snuol district, Kandal
Contact Person : Mr. Luch Cham Roeurn
Contact Phone : 023 355 044 / 092 226 658
Email : [email protected]
Website : www.prasac.com.kh
Tuol Ngouk village, Kampong Luong commune,
Pongea Lueu ditrict, Kandal
Contact Person : Mr. San Sovuthy
Contact Phone : 024 399 024 / 012 253 971 / 011 805 491
Email : [email protected]
Website : www.prasac.com.kh
Kraom village, Prek Anchanh commune,
Mukh Kampul district, Kandal Province
Contact Person : Mr. Heng Khunthy
Contact Phone : 024 390 016 / 012 364 797
Website : www.prasac.com.kh
Kampong Popil village, Kampong Popil commune,
Pea Reang district, Prey Veng.
Contact Person : Mr. San Pheak Kdei
Contact Phone : 032 399 053 / (012)(011)(015) 643 634
Email : [email protected]
Website : www.prasac.com.kh
SUB BRANCH REUSEY KEO
SUB BRANCH BEKCHAN
SUB BRANCH PREK KDAM
SUB BRANCH PREK ANCHANH
SUB BRANCH KAMPONG POPIL
Snay Pol Village, Roka Commune,
Pea Reang District, Prey Veng Province
Contact Person : Mr. Ouk Sor Phea
Contact Phone : 012 418 212
Website : www.prasac.com.kh
SERVICE OFFICE PEA REANG
Snay Pol Village, Roka Commune,
Pea Reang District, Prey Veng Province
Contact Person : Mr. Ek Sophal
Contact Phone : 012 643 634
Website : www.prasac.com.kh
Porproek Cheung Village, Kakab Commune,
Dangkoa District, Kandal Province
Contact Person : Mr. Sam Ol Sopheak
Contact Phone : 012 810 326 / 016 895 664
Website : www.prasac.com.kh
Phsa takao village, Rokaknong Commune,
Daun Keo District, Takeo Province
Contact Person : Mr. Em Pheng
Contact Phone : 012 890 939 / 016 890 939 / 032 931 510
Email : [email protected]
Website : www.prasac.com.kh
Angtasaom Village, Angtasaom Commune, Tram kak District,
Contact Person : Mr. Suon Yon
Contact Phone : 012 463 019 / 085 598 644
Website : www.prasac.com.kh
SUB BRANCH PREK TAKOV
SUB BRANCH POCHHIN TONG
SUB BRANCH DAUN KEO
SUB-BRANCH ANG TASOM
Phsar Takao village, Rorkaknong Commune,
Daunkeo District, Takeo Province
Contact Person : Mr. Sras Pheakdey
Contact Phone : 032 931 510 / 012 472 455
Email : [email protected]
Website : www.prasac.com.kh
TAKEO BRANCH
Kampong Village, Preah Bat Chan Chum Commune,
Kirivong District, Takeo Province
Contact Person : Mr. Prak Lon
Contact Phone : 032 399 036 / 012 525 903
Email : [email protected]
Website : www.prasac.com.kh
SUB BRANCH KIRIVONG
Dei Kraham Village, Prey Romdeng Commune,
Kirivong District, Takeo Province
Contact Person : Mr. Prak Lon
Contact Phone : 012 525 903 / 032 399 036
Email : [email protected]
Website : www.prasac.com.kh
Kampong Chrey Village, Smaong Commune,
Treang District, Takeo Province
Contact Person : Mr. Chuong Sam Oeun
Contact Phone : 032 399 033 / 012 602 526
Email : [email protected]
Website : www.prasac.com.kh
Chambak Em Village,Rominh Commune,
Koh Andet District, Takeo Province
Contact Person : Mr. Chuong Sam Oeun
Contact Phone : 032 399 033 / 012 602526
Email : [email protected]
Website : www.prasac.com.kh
Prey Lvea Kaeut village, Prey Lvea Commune, Prey Kabbas District,
Contact Person : Mr. Y Yoeun
Contact Phone : 032 393 932 / 012 500 823
Email : [email protected]
Website : www.prasac.com.kh
POST SERVICE PSAKIRI
SUB BRANCH KAMPONG CHREY
POST SERVICE ROMINH
SUB BRANCH PREY KABAS
AB
OU
T PR
ASA
C M
FI L
TDO
WN
ERSH
IP A
ND
GO
VER
NA
NC
EA
UD
ITED
FIN
AN
CIA
L ST
ATE
MEN
TR
EPO
RT
HIG
HLI
GH
TS
74
CO
NTA
CT U
S
Kampong Luong Village, Angkor Borey Commune,
Angkor Borey District, Takeo Province.
Contact Person : Mr. Y Yoeun
Contact Phone : 012 500 823
Website : www.prasac.com.kh
Seiha Village, Chambak Commune, Baty District, Takeo Province.
Contact Person : Mr. Chhun Bunna
Contact Phone : 024 393 035 / 012 931 908 / 085 598 646
Email : [email protected]
Website : www.prasac.com.kh
Muk Khet Village, Roka Thom Commune,
Chbar Mon District, Kampong Speu Province.
Contact Person : Mr. Im Buntha
Contact Phone : 016 707 104
Website : www.prasac.com.kh
POST SERVICE ANGKOR BOREY
SUB BRANCH BATY
SUB BRANCH CHBAR MORN
Muk Khet Village, Roka Thom Commune,
Chbar Mon District, Kampong Speu Province.
Contact Person : Mr. Lim Thy
Contact Phone : 012 567 783 / 025 987 399
Email : [email protected]
Website : www.prasac.com.kh
KAMOPONG SPEU BRANCH
Phsar Trapaing KraLeung Village, Kirivorn Commune,
Phnom Srouch District, Kompong Speu Province.
Contact Person : Mr. Ouk Sovathea Pheap
Contact Phone : 012 904 072
Website : www.prasac.com.kh
ThnalTorTeung Village, DomnakAmpil Commune,
AngSnuol District, Kandal Province.
Contact Person : Mr. Em Sokha
Contact Phone : 012 777 610
Website : www.prasac.com.kh
Bat Doeng Village, Khsem Khsan Commune,
Odongk District, Kampong Speu Province.
Contact Person : Mr. Ten Eath
Contact Phone : 012 400 412 / 025 399 043
Email : [email protected]
Website : www.prasac.com.kh
Monourom Village, Monourom Commune,
Thpong District, Kampong Speu Province.
Contact Person : Mr. Tol Men
Contact Phone : 012 308 602
Website : www.prasac.com.kh
Tram Khnar Village, Snam Krapeu Commune,
Kong Pisey District, Kampong Speu Province.
Contact Person : Mr. Hun Bunrith
Contact Phone : 012 581 009 / 025 393 942
Email : [email protected]
Website : www.prasac.com.kh
Preah Mlob Village, Pheari Mean Chey Commune,
Basedth District, Kampong Speu Province.
Contact Person: Mr. Nhem Sarin
Contact Phone: 092 812 667 / 016 555 281
Website : www.prasac.com.kh
SUB TRAPAINGKRALEUNG
SERVICE OFFICE THNALTORTEUNG
SUB BRANCH OUDONG
SERVICE OFFICE SAM RONG
SUB BRANCH KONG PISEY
SERVICE OFFICE SLAB LENG
Krapeu Ha Village, Prek Ruessey Commune,
Takhmau District, Kandal Province.
Contact Person : Mr. Yi Sotara
Contact Phone : 012 426 272 / 099 847 374
Email : [email protected]
Website : www.prasac.com.kh
TAKHMAU BRANCH
Krapeu Ha Village, Prek Ruessey Commune, Takhmau District.
Contact Person : Mr. Sen Kamsan
Contact Phone : 023 983 860 / 012 431 983 / 085 598 689
Email : [email protected]
Website : www.prasac.com.kh
Kampong Svay Kraom Village, Prek Thmey Commune,
Koh Thom District, Kandal Province.
Contact Person : Mr. Dop Phirum
Contact Phone : 024 399 036 / 012 489 786 / 085 598 692
Email : [email protected]
Website : www.prasac.com.kh
Kaoh Teav”KAR” Village, Sampov Poun Commune,
Koh Thom District, Kandal Province.
Contact Person : Mr. San Chheang
Contact Phone : 012 297 382 / 016 670 673
Website : www.prasac.com.kh
Prek Run Village, Prek Koy Commune,
Saang District, Kandal Province.
Contact Person : Mr. Lim Lakg
Contact Phone : 024 399 034 / 012 622 398 / 085 598 690
Email : [email protected]
Website : www.prasac.com.kh
Treuy Troeng Village, Prek Ambel Commune,
Saang District, Kandal Province.
Contact Person : Mr. Ly Meng Hong
Contact Phone : 012 427 229
Website : www.prasac.com.kh
SUB BRANCH TAKHMAU
SUB BRANCH KOH THOM
SERVICE OFFICE SAMPOV POUN
SUB BRANCH SAANG
SERVICE OFFICE PREK AMBEL
AB
OU
T PRA
SAC
MFI LTD
OW
NER
SHIP A
ND
GO
VER
NA
NC
EA
UD
ITED FIN
AN
CIA
L STATEM
ENT
REPO
RT H
IGH
LIGH
TS
75
v
CO
NTA
CT
US
Svay Ming Village, Baku Commune, Kandal Stueng, Kandal Province.
Contact Person : Mr. Kong Ty
Contact Phone : 024 390 015 / 012 536 053 / 016 536 053
Email : [email protected]
Website : www.prasac.com.kh
Tuol Tnaot Village, Kokir Commune, Kien Svay District.
Contact Person : Mr. Va Rithy
Contact Phone : 024 399 054 / 016 961 061 / 085 598 693
Email : [email protected]
Website : www.prasac.com.kh
SUB BRANCH KANDAL STRUENG
SUB BRANCH KIEN SVAY
Prampir village, Kampong Leav Commune,
Kampong Leav District, Prey Veng Province.
Contact Person : Mr. Path Reasmey
Contact Phone : 043 944 508 / 012 519 152
Email : [email protected]
Website : www.prasac.com.kh
Pou Chendam Village, Svay Antor Commune,
Prey Veng District, Prey Veng Province.
Contact Person : Mrs. Em Sophal
Contact Phone : 012 773 285 / 085 598 656
Website : www.prasac.com.kh
Chou Ti 3 Village, Kranhung Commune,
Kam Chay Mear District, Prey Veng Provice.
Contact Person : Mr. Ros Chim
Contact Phone : 043 399 055 / 012 970 048 / 085 59 86 56
Email : [email protected]
Website : www.prasac.com.kh
Prasae Mok Village, Kanhchriech Commune,
Kanhchriech District, Prey Veng Province.
Contact Person : Mr. Heng Toeurn
Contact Phone : 012 677 186
Website : www.prasac.com.kh
SUB BRANCH SVAY ANTOR
SUB BRANCH KAM CHAY MEA
SERVICE OFFICE KANHCHRIECH
PREY VENG BRANCH
Muoy village, Prek Khsay Kha Commune,
Peam Ro District, Prey Veng Province.
Contact Person : Mr. Khy Sean
Contact Phone : 043 393 952 / 012 649 503
Email : [email protected]
Website : www.prasac.com.kh
Chheu Kach Village, Chheu Kach Commune,
Baphnom, Prey Veng Province.
Contact Person : Mr. Eang Kimsan
Contact Phone : 042 399 056 / 012 395 892 / 085 598 658
Email : [email protected]
Website : www.prasac.com.kh
SUB BRANCH NEAK LOEUNG
SUB BRANCH BAPHNUM
Prey Meas Village, Angkor Reach Commune,
Preah Sdach district, Prey Veng Province.
Contact Person : Mr. Sim Mongkul
Contact Phone : 016 752 192 / 099 752 192
Email : [email protected]
Website : www.prasac.com.kh
Chambok Village, Prasat Commune,
Kampong Trabaek District, Prey Veng Province.
Contact Person : Mr. Um Aun
Contact Phone : 016 741 041 / 023 351 390
Email : [email protected]
Website : www.prasac.com.kh
Toul Ampil Village, Chrak Mtes Commune,
Svay Teab District, Svay Rieng Province.
Contact Person : Mr. Som Sotha
Contact Phone : 011 633 145
Website : www.prasac.com.kh
Ta Pa Village, Tasuos Commune,
Svay Chrum District, Svay Rieng Province.
Contact Phone : 017 348 870 / 099 455 018
Website : www.prasac.com.kh
Kampong Chamlorng Village, Praek Tunloip Commune,
Leuk Daek Districk, Kandal Province.
Contact Person : Mr. Hay Bun Srean
Contact Phone : 016 286 400 / 012 286 400 / 085 59 86 59
Website : www.prasac.com.kh
Vaing Village, Chhi Thoch Commune,
Mesang District, Prey Veng Province.
Contact Person : Mr. Sok Sopheak
Contact Phone : 042 399 056 / 012 835 259
Email : [email protected]
Website : www.prasac.com.kh
SUB BRANCH PREAH SDACH
SUB BRANCH KAMPONG TRABAEK
SUB BRANCH SVAY TEAP
SUB BRANCH SVAY CHRUM
SUB BRANCH LEUK DAEK
SERVICE OFFICE MESANG
Kien Sang Village, Svay Rieng Commune,
Svay Rieng District, Svay Rieng Province.
Contact Person : Mr. Preap Hor
Contact Phone : 012 739 716 / 044 945 683
Email : [email protected]
Website : www.prasac.com.kh
SVAY REING BRANCH
Prasaut 1 Village, Kandiengray Commune,
Svay Teap District, Svay Rieng Province
Contact Person : Mr. Sam Tito
Contact Phone : 099 844 117
Website : www.prasac.com.kh
SERVICE OFFICE BROR SOT
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Kampong Trach Village, Kampong Trach Commune,
Romeas Haek District, Svay Rieng Provice.
Contact Person : Mr. Pen Sokunthea
Contact Phone : 092 252 450 / 011 621 927
Website : www.prasac.com.kh
Chantrei Village, Chantrei Commune,
Romeas Hek District, Svay Rieng Provice.
Contact Person : Mr. Chhum Sokha
Contact Phone : 012 322 080
Website : www.prasac.com.kh
SUB BRANCH ROMEAS HEK
SERVICE OFFICE CHANN TREY
House 149, Kampong Bay Khang Choeu Village,
Kampong Bay Commune, Kampot District, Kampot Province.
Contact Person : Mr. Ly Sakhoeun
Contact Phone : 012 706 971 / 033 932 972
Email : [email protected]
Website : www.prasac.com.kh
Prey Krala Khang Lech Village, Touk Meas Khang Lech Commune,
Banteay Meas District, Kampot Province.
Contact Person : Mr. Sam Try
Contact Phone : 033 393 971 / 012 299 406
Email : [email protected]
Website : www.prasac.com.kh
Sat Pong Village, Sat Pong Commune, Chhuk District.
Contact Person : Mr. Kun Sokhornpagna
Contact Phone : 012 963 337 / 023 358 477
Email : [email protected]
Website : www.prasac.com.kh
SUB BRANCH KAMPOT
SUB BRANCH BANTEAY MEAS
SUB BRANCH CHHOUK
House 149, Kampong Bay Khang Choeu Village,
Kampong Bay Commune, Kampot District.
Contact Person : Mr. Nhet Rith
Contact Phone : 012 423 125 / 033 393 971
Email : [email protected]
Website : www.prasac.com.kh
KAMPOT BRANCH
Kampong Trach Ti Mouy Village, Kampong Trach Khang Khoeut
Commune, Kampong Trach District, Kampot Province.
Contact Person : Mr. Suth Samnang
Contact Phone : 011 654 529 / 023 351 093
Email : [email protected]
Website : www.prasac.com.kh
SUB BRANCH KAMPONG TRACH
Thnal Bombek Village, Roleab Commune,
Sampov Meas District, Pursat Province.
Contact Person : Mr. Sok Pisath
Contact Phone : 052 951 081 / 012 200 072 / 085 598 672
Email : [email protected]
Website : www.prasac.com.kh
Pou Village, Phnumkong Commune,
Angkor Chey District, Kampot Province.
Contact Person : Mr. Tith Sok Chea
Contact Phone : 012 607 942
Website : www.prasac.com.kh
Group5,Samrong Village, Sangkat Samrong, Khan Prey Nop.
Contact Person : Mr. San Tha
Contact Phone : 012 766 081 / 023 351 094
Email : [email protected]
Website : www.prasac.com.kh
SUB BRANCH PURSAT
SUB BRANCH ANGKOR CHEY
SUB BRANCH PREY NOP
Thnal Bombek Village, Roleab Commune,
Sampov Meas District, Pursat Province.
Contact Person : Mr. Neang Sinarann
Contact Phone : 052 951 081 / 012 867 602
Email : [email protected]
Website : www.prasac.com.kh
PURSAT BRANCH
Kroch chrar Village, Leach Commune,
Phnom Kravanh District, Pursat Province.
Contact Person : Mr. Houn Soaret
Contact Phone : 092 282 616 / 099 382 138
Website : www.prasac.com.kh
Boeng Kranh Village, Svay Long Commune, Kandeang District.
Contact Person : Mr. Sok Pisath
Contact Phone : 052 951 081 / 012 200 072 / 085 598 672
Email : [email protected]
Website : www.prasac.com.kh
POST SERVICE KRAVANH
POST SERVICE KANDEANG
Phsar Village, Phsar Commune, Krakor District, Pursat Province.
Contact Person : Mr. In Chan Chulsa
Contact Phone : 052 399 082 / 012 777 659
Email : [email protected]
Website : www.prasac.com.kh
SUB BRANCH KRAKOR
Boeng Khnar Village Boeng Khnar Commune,
Bakan District, Pursat Province.
Contact Person : Mr. Heng Sovanna
Contact Phone : 023 358 475 / 092 576 474 / 085 598 671
Email :[email protected]
Website : www.prasac.com.kh
Kansai Banteay Village Moung Commune, Moung Russie District.
Contact Person : Mr. Mom Rithy
Contact Phone : 023 351 389 / 017 558 485 / 085 598 673
Email : [email protected]
Website : www.prasac.com.kh
SUB BRANCH BAKAN
SUB BRANCH MOUNG RUSSIE
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Ou Ambel Village, Ou Ambel Commune, SereiSophorn
Contact Person : Mr. thay socheat
Contact Phone : 012 993 387 / 099 847 544
Email : [email protected]
Website : www.prasac.com.kh
CO
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Autapong Village, Autapong Commune, Bakan District.
Contact Person : Mr. Pol Vuthy Rirth
Contact Phone : 012 792 725
Website : www.prasac.com.kh
Kansai Banteay Village, Moung Commune, Moung Russie District
Contact Person : Mr. Mom Rithy
Contact Phone : 023 351 389 / 017 558 485 / 085 598 673
Email : [email protected]
Website : www.prasac.com.kh
POST SERVICE AUTAPONG
SUB BRANCH MOUNG RUSSIE
Aukhcheay Village, Prekprahsdach Commune, Battambang District
Contact Person : Mr. Leab Kim
Contact Phone : 092 967 424
Website : www.prasac.com.kh
SUB BRANCH BATTAMBANG
Aukhcheay Village, Prekprahsdach Commune,
Contact Person : Mr. Ouk Ry
Contact Phone : 012 993 387
Email : [email protected]
Website : www.prasac.com.kh
BRANCH BATTAMBANG
Ou Ambel Village, Ou Ambel Commune, Serei Sophorn District.
Contact Person : Mr. Tep Sokheng
Contact Phone : 012 338 836 / 085 598 680
Website : www.prasac.com.kh
Phsar Thmei Village, Kumru Commune, Thmar Puok District.
Contact Person : Mr. Morn sinsarin Vichet
Contact Phone : 012 403 093 / 099 343 249
Website : www.prasac.com.kh
Koktrab Village, Tameun Commune, Tmor Kol District.
Contact Person : Mr. Chum Rithy
Contact Phone : 012 500 321
Website : www.prasac.com.kh
Snoeung Village, Snoeung Commune, Banann District,
Contact Person : Mr. Phlay Tola
Contact Phone : 012 469 080 / 016 956 622
Website : www.prasac.com.kh
SUB BRANCH SEREISOPHORN
SUB BRANCH THNOR POURK
SUB BRANCH THMOR KOL
SUB BRANCH BANANN (SNOEUNG )
BANTEAY MEAN CHEY BRANCH
Achar Leak Village, Achar Leak Commune, Steung Sen District.
Contact Person : Mr. Soeur Kim Heang
Contact Phone : 012 681148 / 085 598 674
Email : [email protected]
Website : www.prasac.com.kh
SUB BRANCH KAMPONG THOM
Achar Leak Village, Achar Leak Commune, Steung Sen.
Contact Person : Mr. Chou Sok Chamroeun
Contact Phone : 012 951 866 / 062 962 413
Email : [email protected]
Website : www.prasac.com.kh
KAMPONG THOM BRANCH
Kampong Chheuteal Village Sambo Commune,
Prasat Sambo District, Kampong Thum Province.
Contact Person : Mr. Chiv Sin
Contact Phone : 012 388 373
Website : www.prasac.com.kh
SERVICE OFFICE SAMBO
Prey Tatrav Village, Balang Commune, Baray District,
Contact Person : Mr. Chim Serey
Contact Phone : 062 399 081 / 012 497 550 / 085 598 676
Email : [email protected]
Website : www.prasac.com.kh
Chheuteal Village, Kampong Chen Tbong Commune,
Staung District, Kampong Thom Province.
Contact Person : Mr. Hem Sok Hoeun
Contact Phone : 012 406 486 / 023 358 479 / 085 598 675
Email : [email protected]
Website : www.prasac.com.kh
Sala Khum Village, Treal Commune, Baray District,
Contact Person : Mr. Sum Lim Oeurn
Contact Phone : 012 482 398
Website : www.prasac.com.kh
SUB BRANCH KAMPONG THMAR
SUB BRANCH STAUNG
SERVICE OFFICE RUMLONG
Vihea Chen Village, Svay Dang Kum Commune, Siem Reap District,
Contact Person : Mr. Path Sokha
Contact Phone : 017 976 780 / 015 992 008 / 099 455 280
Website : www.prasac.com.kh
Dam Dek Thmey Village, Dam Dek Commune,
Soutr Nikum District, Siem Reap Province.
Contact Person : Mr. Seung Sathya
Contact Phone : 012 360 230 / 016 317 917 / 011 773 743
Website : www.prasac.com.kh
Kampong Kdey 2 Village, Kampong Kdey Commune,
Chi Kraeng District, Siem Reap Province.
Contact Person : Mr. Meas Sitha
Contact Phone : 012 562 041 / 085 598 683
Website : www.prasac.com.kh
Vihea Chen village, Svay DangKum Commune, Siem Reap
Contact Person : Mr. Tea Vanna
Contact Phone : 012 992 006 / 015 992 006
Email : [email protected]
Website : www.prasac.com.kh
SUB BRANCH SIEM REAP
SUB BRANCH DAM DEK
SUB BRANCH CHI KRAENG
SIEM REAP BRANCH
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PRASAC MICROFINANCE INSTITUTION LIMITED
HIGHLIGHT WITH OPERATION MAPOUTREACH
ODDARMEANCHEY
SIEMREAP
BANTEAYMEANCHEY
PREAHVIHEAR STUNG
TRENG
MONDOLKIRIKRATIE
KAMPONGCHAM
KOHKONG
KAMPOT
SIHANOUKVILLE
TAKEO
SVAYRIENG
PREYVENG
KANDAL
PHNOMPENH
KAMPONGCHHNANG
PURSAT
KAMPONGSPEU
KAMPONGTHOM
BATTAMBANGPAILIN
RATANAKIRI
KEP
Operating Area
Prospective Operational Area
Operating Provinces :
Operating Districts :
Branch Offices :
Sub Branch Offices :
Service Offices :
17
126
15
72
25
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