PHUTHALICHABA Savings and Credit Cooperative Society Limited’s total revenue has increased by 139 percent, with the society’s expenditure also going up by a staggering 192 percent.
Sept. 8, 2022
2 min read
Phuthalichaba increases revenue by 139 %
Phuthalichaba Savings and Credit Cooperative Society Limited CEO, Tebello Tjapela
- Society expenditure grows by 192 %
- Statements prepared in accordance with international financial reporting standards
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This was revealed in the society’s Integrated Annual Report for the year ended July 31, 2020.
The annual financial statements have been prepared in accordance with the international financial reporting standards for Small and Medium-sized Entities issued by the International Accounting Standards Board and the requirements of the Close Cooperatives Act of Lesotho.
“In the financial year 2021-2022, we introduced the personal loan and purchase order loan, bought stock in Enrich Holdings Ltd, and invested in Stanlib. By the end of the financial year, our total revenue had increased by 139 percent. The expenditure also rose by 192 percent but a larger portion of this sum is made up of salaries and bank fees, both of which are crucial costs for Phuthalichaba to function,” the report stated.
In March 2022, the sum of the assets, deposits, and cash and cash equivalents increased by 185, 208 and 191 percent. The main contributor is interest received from personal loans.
Cash and cash equivalents include cash on hand, demand deposits and other short term highly liquid investments with original maturities of three months or less.
“We are looking forward to increasing this value through more diversification and an upswing in our loans. By the end of June 2022, we had upgraded our loan application and approval process to be entirely online, and since that time, the rate and value of our loans and the number of loans issued per month have increased,” the society further noted.
Phuthalichaba Management has been proactive and focused on innovation as one of its governance responsibilities in order to stay relevant and competitive in the digital age. The extent to which the company contributes to the society in a positive way will determine its long term viability.
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The organisation’s progress has been hailed by its Chief Executive Officer (CEO), Tebello Tjapela who highlighted that the company continues to make investments so that all of its services are available digitally.
“I am very pleased that we have adhered to our main objective which is to keep up with new electronic gadgets and technological advancements. So far, all of our transactions, including borrowing and lending have been electronic and carried out through a bank.
“As a result, the bank’s archive continues to hold permanent records of our transactions, making them traceable. A high degree of accountability is thus ensured. It also makes sure that our members are not restricted to a certain geographical area. Any Lesotho citizen from anywhere in the world is welcome to join, hence our name Phuthalichaba,” Tjapela said.