The purpose of the study is to observe whether proper methods and Case

The purpose of the is to observe whether proper methods and techniques of Financial Statements preparations are used in Mi - Case Study Example The Board may also pay specific attention to how well management is employing information to feedback about its operations, to propose new strategies and to make decisions. Operating and financial statements of MFI will report on a quarterly / monthly basis, including a set of carefully selected indicators for identifying progress against financial goals of the MFIs social objectives and operations plans. These financial and operating reports should give the top management of MFI an exhaustive and focused portrait of MFIs progress as regards to its triple bottom line. In this study, I will be analysing in detail about whether proper methods and techniques of Financial Statements preparations are used in Microfinance Institutions in order to help the CEOs with data pertinent to day-to-day operations and decision making. (Goldberg & Palladini 30) 2. â€Å"Purpose of the study â€Å" â€Å"The purpose of the study â€Å"is to observe whether proper methods and techniques of Financia l Statements preparations are used in Microfinance Institutions in order to help the CEOs with data pertinent to day-to-day operations and in decision making. Thus, the main aim of this research study is to make recommendations for appropriate financial standards, keeping in mind the professionals in the sector who may be required to have a preface to the implications and the depth of such financial standards. 3. ... This again corroborates that MFI should pay more attention to prepare its financial statements with the above specific requirements well within the time limit. (Ledgerwood & White 313). CAMEL system was first perused by the bank regulators in North America to assess the managerial and financial soundness of the commercial financial institutions in U.S.A. MFI are using the CAMEL appraisal norms and grade five provinces of managerial and financial performance. It includes the following Asset quality Capital Adequacy Management Liquidity management Earnings Employing the original CAMEL’s conceptual framework, â€Å"ACCION international structured its own apprising strategy.† â€Å"The ACCION CAMEL model assesses the analogues five provinces but the ratings and indicators mirror the conditions and challenges of the microfinance industry. â€Å"ACCION CAMEL methodology needs the MFI to offer the following information: Cashflow and budget projections Financial statements pr epared in accordance with GAAP Portfolio aging schedules Funding sources Operations and staffing Microeconomic data With the above information from the financial statements of MFI, the ACCION CAMEL makes the following fine-tuning: 1) loan write-offs, 2) loan loss provision 3) Impacts of inflation 4) explicit and implicit studies 5) accrued interest income . Further, it rates and analyses twenty-one major pointers with every pointer accorded with a separate weighting. (Goldberg & Palladini: 13). Management Information System (MIS) is one another area that is required to be fortified in the microfinance sector and Information Technology can make a huge difference in this province. Now, there are available IT solutions,