The ARDCI Microfinance, Inc.’s recent opening of two new subsidiaries – the ARDCI Mart, Inc. and ARDCI Business Center at its Moonwalk, Calatagan lot – is apparently part of its aggressive post-pandemic expansion.
Based on its recent annual general meeting, the microfinance giant suffered from the effects of the COVID-19 quarantines and health restrictions and as a result did not open new branches at all from 2020 to 2021.
But it did proceed with the construction of ARDCI Corporate Building 2 that was inaugurated in February this year.
This first quarter of 2022, it launched branches in Palawan, Capiz and Panay.
For 2021, ARDCI MFI had a total loan portfolio of P1.16 billion, just short of its target of P1.19 billion.
It also earned a net income of P103 million, also below the target of P119 million.
It also managed to reduce its Portfolio-At-Risk (PAR) ratio from a high of 32.86% in 2020 to just 3.10% in 2021.
The PAR is used in microfinance institutions or banks to measure the quality of loans and the risk that they currently have.
The risk refers to the possibility that the loan’s clients may not pay or not be able to pay back the loans that were provided them.
Thus, a PAR ratio of 32.86% means that a third of ARDCI’s loans in 2020 were overdue for 30 days or more. It also means two-thirds of its P1 billion loan portfolio were “good” loans.
The microfinance company’s confidence in its foreseeable future is exemplified by the opening of the two subsidiaries, with ARDCI Mart supposed to provide discounts to its members and employees as well cater to the general public.
ARDCI MFI is also establishing an integrated swine breeding farm at a lot it bought in Hawan Ilaya, Virac, with the Department of Agriculture providing a grant.
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In the last audit report of the Commission on Audit, for 2020, it was observed that the provincial government maintained 12 “high-yielding” time deposit accounts amounting to P258.2 million with three local banks.
Reacting to the auditor finding that the accounts were maintained without the authority from the Sangguniang Panlalawigan, the LGU cited three SP resolution passed in 2009, 2010 and 2012 as the bases for maintaining the time deposits.
The audit team, however, stood on its recommendation that new authority from the provincial board should be sought.
Seeking authority from the SP will enable it to exercise its legislative power to decide whether to continue investing in time deposit or terminate the same so the funds could be used to finance priority projects.
Cash invested in time deposit is a source of income subject for appropriation and only the SP is vested with powers under RA 7160 to authorize its utilization, the report stated.
Assuming the outgoing board knew of the COA findings, did it grant new, post-facto authority for the time deposit placements?
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HOW TO GET INTO HEAVEN. A man dies and mets St. Peter at the Pearly Gates. Peter says to the man, “Here’s how it works. You need to have one hundred points to get into heaven. You tell me about all the good things you’ve done. They are all worth a certain number of points. If your total is one hundred or more, you can come in.”
“Well,” says the man. “I was happily married to the same woman for 52 years. I never looked at another woman. I was attentive and loved her dearly.”
“That’s great,” says St. Peter. “That’ll be two points.”
“Hmmm,” says the man. “This is going to be harder than I thought. Well, I attended church regularly, volunteered my time and tithed faithfully.”
“Wonderful,” says St. Peter, “That’s worth another point.”
“One point!” says the man. “Okay, okay. I was involved with a prison ministry for twenty-five years. I went into the prison, at least monthly, and shared Jesus with them.”
“Wow!” says St. Peter. “That’s another two points!”
“Only two points!” says the man. “At this rate, it’ll be only by the grace of God that’ll I’ll ever get into this place.”
“Bingo!” says St. Peter. “That’s one hundred points! Come on in.”