Business Planning with Microfin
April 15-19, 2019
MFI Resources is pleased to partner with LSE Financial Services Limited to present a five day training workshop on Microfin - An Operational Planning Model for Microfinance Banks / Institutions.
Join microfinance practitioners and interested parties 10:00 AM to 04:30 PM April 15-19, 2019 at the LSE Plaza Auditorium (19 Khayaban-e-Aiwan-e-Iqbal, Garhi Shahu, Lahore, Punjab 54000, Pakistan) for an in-depth training on Microfin.
Profile of LSE Financial Services Limited
LSE Financial Services Ltd. (“LSEFSL” - the “Company”) emerged as Non-Bank Finance Company (“NBFC”) as from January 11, 2016, after integration of Lahore Stock Exchange and Karachi Stock Exchange under the Stock Exchange (Corporatization, Demutualization and Integration) Act, 2012. The Securities and Exchange Commission of Pakistan (“SECP”) has granted it a license to carry out the business of Investment Finance Services. Presently, it is a non-deposit taking lending NBFC.
The Company has a paid-up capital of Rs. 1.2 billion and is public Company having registered office at Lahore. The Board of Directors of the Company comprises 7 directors including the CEO/MD. Two of the directors including the Chairman of the Board are independent directors. Most of the shareholders are broker as the shares were allotted to them during the process of demutualization of erstwhile Lahore Stock Exchange Ltd. The Company owns LSE Plaza consisting of two Towers located at the prime location of Lahore. Most of the offices in the LSE Plaza are that of brokers. There are several commercial banks, multinational companies, Pakistan Stock Exchange (PSX) and stock brokers also has a office in the LSE Plaza.
The Company is a member of NBFI & Modaraba Association of Pakistan.
Microfin is the premier Microfinance planning and budgeting tool. Anyone who has created a MFI's budget quickly realizes microfinance's complexity. Microfin automates all of the complex calculations, taking inputs (assumptions) on future organization growth, current and future loan and savings products, staffing, expenses, fixed assets and funding, and automatically generates future balance sheets, income statements, and cash flow statements for future budgeting, analysis, and comparison with actual results. As MFIs take budgeting seriously, they can capture market share, reduce interest rates, test the impact of operational decision on the financial statements, and make credible presentations to board members, donors, and investors, many of whom are very familiar with (or may even require) Microfin.
Business Planning with Microfin
Microfin training focuses on strategic planning as the basis for creating operational forecasts for program growth, revenue, and expenses. Tradeoffs regarding interest rate policy, organic vs. exponential growth, and capital structure all will be discussed along with how they relate to operational decisions. Participants will use a case study approach to learn the Microsoft Excel based tool, and will have a good feel for how to create their own projections when they leave the training.
This will be a very interactive learning process and participants will be encouraged to share experiences, feelings, and ideas regarding the state of the industry as well as successes and challenges currently facing the provision of credit and savings services to the unbanked. Although not required, bringing a Windows based laptop is encouraged.
Lunch and two coffee breaks will be provided each day.
Profile of Trainers
Mr. Howard Brady - Microfin Instructor
Howard Brady, a seasoned microfinance consultant of 24 years, will be present throughout and will co-teach the workshop. Howard has been a Microfin instructor with Chuck Waterfield, the original author of the software, since 2000. In April 2016, Howard assumed the future development and maintenance of Microfin. Howard's consultancies have helped increase the efficiency and effectiveness of MFIs worldwide, have helped organizations find solutions to delinquency issues, and have created appropriate internal audit and internal control environments. Howard integrates his first hand experiences into his teaching to provide practical solutions to complex issues facing MFIs today.
Mr. Sibghatullah Khalid - CEO / MD - LSE Financial Services Limited
Mr. Muhammad Sibghatullah Khalid has over two decades of diversified experience and has worked on several assignments for Microfinance institutions and Banks, Commercial Banks, manufacturing concerns; administrative and operational assignments both in Pakistan and abroad. Mr. Khalid has worked with organizations including Khushhali Bank; Mobilink; FINCA Afghanistan; First Microfinance Bank Afghanistan; and the Attieh Steel KSA. During his various assignments, he has had extensive exposure to Financial Controls and Regulatory Compliance, Working Capital Management; ERP development and implementation, cross border project financing facilities including export credit agencies and multilateral lending agencies financing facilities, due diligence methodologies, portfolio management, financial analysis and Risk management practices.
He also serves on the Board of Directors of Central Depository Company of Pakistan Limited & National Clearing Company of Pakistan Limited. Mr. Khalid is a Fellow member of the Institute of Chartered Accountants of Pakistan. He has also worked with Deloitte, Grant Thornton and E&Y Chartered Accountants during his career on different roles.
For international delegates, the cost of the training is USD 1250, however the following early booking discounts are available:
Register before February 20, 2019 and an early registration discount of USD 300 will apply (the cost is USD 950)
Register before March 10, 2019 and an early registration discount of USD 150 will apply (the cost is USD 1100)
Register multiple delegates from the same institution and there will be a USD 100 discount for each delegate registered (making the cost USD 850 for each delegate registered before February 20, 2019)
Note that the costs above do not include hotel, travel, or other meals. Please inquire about hotels if needed.
A detailed, day by day agenda follows:
Microfin Training Agenda
- Defining the purpose of planning; business planning, strategic planning, operational planning, and financial projections
- Presenting the components of strategic planning; mission statement, vision statement, SWOT analysis, markets and clients, environmental analysis and institutional assessment
- Introduction to financial statements; balance sheet, income statement, cash flow statement, portfolio report
- Introduction to adjustments; inflation, subsidized cost of funds, in-kind donations
- Introduction to ratio analysis; definition of key ratios, trend analysis
- Introduction to Microfin, linking business planning aspects to the strategic planning methodology
Each Microfin section is then explained with relevant discussion on each section, after which individuals take time to input case study data and make individual operational decisions based on their understanding of the case study and own relevant operational planning experience. The training is broken down into the following pieces:
- Model Setup Sheet: System Parameters including operating mode, consolidated or multi branch/region mode, inflation, indexing, and historical financial statements
- Products Sheet: Loan Products and how to divide overall loan portfolio
- Product Design Sheet: Average loan size by cycle, Repayment frequency and term, Grace period, Compulsory savings, Interest calculation method, Interest rate charged, Credit insurance
- Products Sheet: Agent or insurer of credit insurance, Line of credit product parameters, compulsory and voluntary savings parameters
- Product Activity Sheet: Initial balances, number of active loans, client retention, resting or delayed disbursements
- Graphs Page: Introduction to Loan projection graphs
- Branch Page: Line of credit projections, compulsory and voluntary savings projections, credit insurance projections
- Branch Page: Loan loss provision and write off, loan officer analysis, number of branches
- Inst. Cap. Page: Branch office and Head office staffing
- Branch Page: Branch office staffing and staffing costs
- Head Office: Head office staffing and staffing costs
- Inst. Cap. Page: Branch and head office other operating costs
- Branch Page: Details of operating costs
- Head Office Page: Details of operating costs
- Inst. Cap. Page: Branch and Head office Fixed Asset definitions
- Branch Page: Fixed Asset details and projections
- Head Office Page: Fixed Asset details and projections
- Inst. Cap. Page: Building, Other Asset, and In-kind subsidy
- Head Office Page: Tax calculations, In-kind subsidy analysis
- Fin Sources Page: Unrestricted and Restricted Sources (beginning balances, interest rates, indexing to foreign currency), Initial cash balances, Liquidity requirements, Market rate cost of funds, Interest Rate refinements
- Fin Flows Page: Detailed financing by source, automated default funding sources, investment strategy (income on investments), cash flows,
- Advanced topics: Advanced Mode, Navigator Page, Optional tools, Export/Import, Variance Analysis, and other tools.
- “How to?” questions and answers
- Final refinement of the projection model
- Presentation of Certificates and course evaluation