Particulars (figures in million BD Taka) 30.06.06 30.06.05 30.06.

04
Sales Revenues (Less return, others if any) 867 797.7 775.13
Other operating income 0 0 0
Cost of Goods Sold 667.8 592.9 574.35
Gross Profit 199.20 204.80 200.78
General and Admin. Expenses 50.3 48.4 47.8
Selling Expenses 36.1 34.1 33.56
Total Admin. & Selling Exp. 86.40 82.50 81.36
Operating Profit (Loss) (EBIT) 112.80 122.30 119.42
Other Income 0.45 0.3 0.3
Other Expenses (Non Cash) 1.64 2.24 2.19
Earning Before Interest & Tax (EIT) 111.61 120.36 117.53
Financial Expenses (Interest) 79.55 77.2 75.28
Earning Before Tax(EBT) 32.06 43.16 42.25
Provision for Tax(for limited company) 2.28 1.76 1.34
Net Profit /Earning After Tax (EAT) 29.78 41.40 40.91
Dividend 20.8 20.8 19.2
Retain Earnings 8.98 20.60 21.71

Particulars 30.06.06 30.06.05 30.06.04

Current Asset
Cash in Hand 0.99 2.22 1.49
Cash at Bank 38.49 30.96 21.28
Accounts Receivable 45.50 42.50 29.96
L/C Margin 0.00 0.00 0.00
Inventory/Stock 496.02 491.61 493.28
Advance Deposit 85.50 86.25 71.04
Due from Affiliates 0.00 0.00 0.00
Prepaid Expenses 7.28 7.04 5.20
Other Current Assets 16.48 18.21 18.88
Total Current Assets 690.26 678.79 641.13
Fixed Asset
Land & Building 129.20 127.68 126.31
Depriciation 48.21 43.18 37.74
Land & Building (Netof Dep.) 80.99 84.50 88.57
Plant & Machinery 403.55 381.32 353.08
Acc. Depriciation 205.23 174.15 142.57
Plant & Machinery (Netof Dep.) 198.32 207.17 210.51
Furniture & Fixture 2.09 2.06 1.77
Acc. Depriciation 1.17 1.02 0.87
Furniture & Fixture (Net of Dep.) 0.92 1.04 0.90
Other Fixed Assets 78.52 77.69 75.47
Acc. Depriciation 58.37 53.59 48.21
Other Fixed Assets (net of Dep.) 20.15 24.10 27.26
Total Fixed Assets 300.38 316.81 327.24
Other Non Current Assets
Pre-Payments & Advances
Investment in Associate
Intangible Assets
Loan to Directors
Total other Non Current Assets 0.00 0.00 0.00
Total Assets 990.64 995.60 968.37
Liabilities and Owners Equity
Current Liabilities
Accrued Items 4.47 5.21 3.44
Accounts Payable/Sundry Creditors 19.36 21.56 33.98
Bank Loan (under 1 year) 424.11 418.76 417.65
Long Term Loan Installment due for 1 Year 44.21 46.53 41.88
Provision for Tax 4.04 4.87 5.03
Provision for Dividend 0.00 0.00 0.00
Provision for unclaimed Dividend 1.58 2.70 1.22
Other Current Liabilities 2.58 0.00
Total Current Liabilities (3.5 to 3.8) 500.35 499.63 503.20
Non-Current Liabilities
Long Term Loan 152.59 165.94 156.15

Other Non-Current Liabilities (Bank) 0.00 0.00 0.00

Loan from Associates 0.00 0.00 0.00
Total Non-Current Liabilities 152.59 165.94 156.15
Total Liabilities 652.94 665.57 659.35
Equity/ Net Worth: (For Company)
Opening Capital 308.75 289.26 268.71
Add: Net profit 28.95 40.77 40.31
Less: Drawing (Cash) 0.00 0.00
Less: Drawing (Goods) 0.00 0.00
Closing Capital 337.70 330.03 309.02
Tangible Net Worth 337.70 330.03 309.02
Total Liabilities & Equity 990.64 995.60 968.37
 Major Ratios Projected 30.06.06 30.06.05 30.06.04
Profitability Ratios:
Gross Profit Margin (%) #DIV/0! 22.98% 25.67% 25.90%
Net Profit Margin (%) #DIV/0! 3.43% 5.19% 5.28%
Operating Profit Margin (%) #DIV/0! 13.01% 15.33% 15.41%
Return on Assets (%) #DIV/0! 3.01% 4.16% 4.22%
Return on Equity (%) #DIV/0! 8.82% 12.54% 13.24%
Liquidity Ratios:
Current Ratio #DIV/0! 1.38 1.36 1.27
Quick Ratio #DIV/0! 0.17 0.15 0.10
Asset Utilization Ratios:
Sales to Fixed Assets (times) #DIV/0! 2.89 2.52 2.37
Sales to Total Assets (times) #DIV/0! 0.88 0.80 0.80
Sales to Working Capital (times) #DIV/0! 4.57 4.45 5.62
Receivable Turnover in days #DIV/0! 19.16 19.45 14.11
Inventory Turnover in days #DIV/0! 271.11 302.64 313.48
Payable Turnover in days #DIV/0! 8.15 9.87 16.00
Debt Utilization Ratios:
Debt to Equity (%) #DIV/0! 193.35% 201.67% 213.37%
Debt to Total Assets (%) #DIV/0! 65.91% 66.85% 68.09%
Coverage Ratios:
Debt Service Coverage (times) #DIV/0! 0.99 1.02
Interest Coverage in Times #DIV/0! 1.40 1.56 1.56

Particulars (figures in million BD Taka) 30.06.06 30.06.05 Change (+/-)

Operating Activities
Earning Before Interest & Tax (EIT) 111.61
Add: Depreciation
Add: Other non-cash Expenses(If any) 1.64
Change in Accounts Receivable 45.50 42.50 (3.00)
Change in L/C Margin 0.00 0.00 0.00
Change in Inventory/Stock 496.02 491.61 (4.41)
Change in Advance Deposit 85.50 86.25 0.75
Change in Due from Affiliates 0.00 0.00 0.00
Change in Prepaid Expenses 7.28 7.04 (0.24)
Change in Other Current Assets 16.48 18.21 1.73
Change in Accruable 4.47 5.21 (0.74)
Change in Accounts Payable 19.36 21.56 (2.20)
Change in Bank Loan (under 1 year) 424.11 418.76 5.35
Change in term loan installment due for 1
44.21 46.53 (2.32)
(one) year
Change in Other Current Liabilities 2.58 0.00 2.58
Net Cash from operating activities 110.75
Investing Activities
Change in Land & Building 129.20 127.68 (1.52)
Change in Plant and Machinery 403.55 381.32 (22.23)
Change in Furniture and Fixtures 2.09 2.06 (0.03)
Change in Other Fixed Assets 78.52 77.69 (0.83)
Change in Other non current assets 0.00 0.00 0.00
Net cash from Investing activities (24.61)
Financing Activities
Tax payment 2.28
Dividend Payments 20.80
Provision for unclaimed Dividend 1.58
Change in Long term Loan 152.59 165.94 (13.35)
Change in other non-current liability 0.00 0.00 0.00
Change in loan from associates 0.00 0.00 0.00
Change in Capital 308.75 289.26 19.49
Change in Loan From Directors 0.00 0.00 0.00
Change in Reserves 0.00 0.00 0.00
Net Cash from Financing Activities 30.80

Net change in Cash Flow 116.94

Opening Balance 33.18

(Cash Withdrawal)/+ Cash injection (110.64)
Ending Balance 39.48
 Credit Risk Grading Model
Score Summary
Reference No.: Date:

Name of the Borrower Agricultureal Marketing Company Limited (AMCL)

Key Person Major General Amjad Khan Chowdhury (Retd)
Group Name (if any) Agricultureal Marketing Co. Ltd.
Branch:
Industry Food Aggregate Score: 68.00
Sector Food and allied
Date of Financials
Originated by (RO/SRO) X Risk Grading: Marginal/W
atch List
Completed by (RM/SRM) Y
Approved by (CO/SCO) Z

Numeric Grade Grade Short Score

Fully cash covered, secured by
1 Superior SUP Government/International Bank
Guarantee
2 Good GD 85+
3 Acceptable ACCPT 75-84
4 Marginal/Watchlist MG/WL 65-74
5 Special Mention SM 55-64
6 Substandard SS 45-54
7 Doubtful DF 35-44
8 Bad/Loss BL <35

Credit Risk Grading Model

 Score Calculation Sheet (Considering first year)

Score
Criteria Weight Parameter Score Actual Parameter
Obtained
A. Financial Risk 50%
A-1 Leverage 10%
A-1.1 Debt-Equity (x) - Times 5% < 0.25 x 5.00 1.93 3.25
0.26× to 0.35 x 4.50
0.36× to 0.50 x 4.25
0.51× to 0.75 x 4.00
Total Liabilities to Tangible Net worth 0.76× to 1.25 x 3.50
1.26× to 2.00 x 3.25
2.01× to 2.50 x 3.00
2.51× to 2.75 x 2.50
> 2.75× 0.00
A-1.2 Debt-Total Asset (x)- Times 5% < 0.25× 5.00 0.66 4
0.26× to 0.35 x 4.50
0.36× to 0.50 x 4.25
0.51× to 0.75 x 4.00
0.76× to 1.25 x 3.50
Total Liability to Total Assets
1.26× to 2.00 x 3.25
2.01× to 2.50 x 3.00
2.51× to 2.75 x 2.50
> 2.75× 0.00
A-2 Liquidity 10%
A-2.1Current Ratio (x) -Times 5% > 2.74× 5.00 1.38 3.5
2.50× to 2.74 x 4.50
2.00× to 2.49 x 4.25
1.50× to 1.99 x 4.00
1.10× to 1.49 x 3.50
Current Assets to Current Liabilities
0.90× to 1.09 x 3.25
0.80× to 0.89 x 3.00
0.70× to 0.79 x 2.50
< 0.70× 0.00
A-2.2 Quick Ratio (x) -Times 5% > 2.00× 5.00 0.17 0
1.75× to 2.00 x 4.50
1.50× to 1.74 x 4.25
1.25× to 1.49 x 4.00
1.00× to 1.24 x 3.50
Quick Assets to Current Liabilities
0.75× to 0.99 x 3.25
0.50× to 0.74 x 3.00
0.25× to 0.49 x 2.00
Less than 0.25× 0.00
A-3 Profitability 20%
A-3.1 Operating Profit Margin (%) 5% > 25% 5.00 13.01% 3
23% to 25% 4.50
20% to 22% 4.00
17% to 19% 3.50
(Operating Profit/Sales) X 100 14% to 16% 3.25
11% to 13% 3.00
8% to 10% 2.50
< 8% 0.00

Credit Risk Grading Model

 Score
Criteria Weight Parameter Score Actual Parameter
Obtained
A-3.2 Net Profit Margin (%) 5% > 15.00% 5.00 3.43% 2.5
13% to 15% 4.50
11% to 12% 4.00
9% to 10% 3.50
(Net Profit/Sales) X 100 7% to 8% 3.25
5% to 6% 3.00
3% to 4% 2.50
< 3% 0.00
A-3.3 Retrun on Asset 5% > 30% 5.00 3.01% 0
26% to 30% 4.50
22% to 25% 4.00
18% to 21% 3.50
(Net Profit/Total Asset) X 100 14% to 17% 3.25
8% to 13% 3.00
5% to 7% 2.50
< 5% 0.00
A-3.4 Return on Equity 5% > 15.00% 5.00 8.82% 3.25
13% to 15% 4.50
11% to 12% 4.00
9% to 10% 3.50
(Net Profit/Total Equity) X 100 7% to 8% 3.25
5% to 6% 3.00
2% to 4% 2.00
< 2% 0.00
A-4 Coverage 10%
A-4.1 Interest Coverage (×) - Times 5% > 2.00× 5.00 1.40 3
1.51× to 2.00× 4.00
Earning before interest & tax (EBIT) 1.25× to 1.50× 3.00
Interest on debt 1.00× to 1.24× 2.00
< 1.00× 0.00
A-4.2 Debt Service Coverage 5% > 2.00× 5.00 0.00 0
1.51× to 2.00× 4.00
EBITDA/(Total Interest+CMLTD) 1.25× to 1.50× 3.00
1.00× to 1.24× 2.00
< 1.00× 0.00
Total Score- Financial Risk 50.00 22.50

B. Business/ Industry Risk 18%

B-1 Size of Business (in BDT crore) 4% > 60.00 4.00 86.70 4
Size of the borrower's business 30.00 – 59.99 3.50
measured by the most recent year's 10.00 – 29.99 3.00
total sales. Preferably audited numbers.
5.00 - 9.99 2.00
2.50 - 4.99 1.00
< 2.50 0.00
B-2 Age of Business 3% > 10 Years 3.00 14 3
Number of years the borrower is 6 - 10 Years 2.00
engaged in the primary line of business 2 - 5 Years 1.00
< 2 Years 0.00
B-3 Business Outlook 2% Favorable 2.00 Favorable 2
Critical assesment of medium term Stable 1.50
prospects of industry, market share and Slightly Uncertain 1.00
economic factors.
Cause for Concern 0.00

Credit Risk Grading Model

 Score
Criteria Weight Parameter Score Actual Parameter
Obtained
B-4 Raw Material Availability 2% Locally available 2.00 Partially import 1
dependent
Partially import dependent 1.00

Fully import dependent 0.50

Scarce 0.00

B-5 Industry Growth 3% Strong (10%+) 3.00 Strong (10%+) 3

Good (>5% - 10%) 2.00

Moderate (1%-5%) 1.00

No Growth (<1%) 0.00

B-6 Market Competition 2% Dominant Player 2.00 Moderately 1

Competitive
Consider market share, demand supply Moderately Competitive 1.00
gap etc.
Highly Competitive 0.00

B-7 Entry/Exit Barrier 2% Difficult 2.00 Average 1

(Technology, capital, regulation etc) Average 1.00

Easy 0.00

Total Score- Business Risk 18.00 15.00

C. Management Risk 12%

C-1 Experience 5 More than 10 years 5.00 More than 10 years 5

Total length of experience of the senior 6–10 years 3.00

management in the related line of
business. 1–5 years 2.00

No experience 0.00

C-2 Trackrecord 2 Very Good 2.00 Very Good 2

Reputation, commitment, trackrecrod of Moderate 1.00

onwers in business.
Poor 0.50

Marginal 0.00

C-3 Second Line/Succession 3 Ready Succession 3.00 Ready Succession 3

Succession within 1-2 years 2.00

Succession within 2-3 years 1.00

Succession in question 0.00

C-4 Team Work 2 Very Good 2.00 Very Good 2

Moderate 1.00

Poor 0.50

Regular Conflict 0.00

Total Score- Management Risk 12.00 12.00

Credit Risk Grading Model

 Score
Criteria Weight Parameter Score Actual Parameter
Obtained
D. Security Risk 10%

D-1 Security Coverage (Primary) 4% Fully covered by underlying 4 Fully covered by 4

assets/substantially cash underlying
covered assets/substantially
Registered Hypothecation (1st 3 cash covered
Charge/Pari passu Charge)

2nd charge/Inferior charge 2

Simple hypothecation / 1
Negative lien on assets

No security 0

D-2 Collateral Coverage (Property 4% R/M on Municipal 4 R/M on 3

Location) corporation/Prime Area Pourashava/Semi-
property Urban area property

R/M on Pourashava/Semi- 3
Urban area property
E/M or No property but other 2
Plant & Machinery as
collateral
Negative lien on collateral 1
No collateral 0
D-3 Support (Guarantee) 2% Personal Guarantee with high 2 Personal Guarantee 2
net worth or Strong with high net worth or
Corporate Guarantee Strong Corporate
Guarantee
Personal Guarantees or 1
Corporate Guarantee with
average financial strength
No support/guarantee 0
Total Score- Security Risk 10 9

E. Relationship Risk 10% 10%

E-1 Account Conduct 5% More than 3 years Accounts 5.00 More than 3 years 5
with faultless record Accounts with faultless
record
Less than 3 years Accounts 4.00
with faultless record
Accounts having satisfactory 2.00
dealings with some late
payments.
Frequent Past dues & 0.00
Irregular dealings in account

E-2 Utilization of Limit 2% More than 80% 2.00 70.00% 1.5

(actual/projection)-Consider both 61% - 80% 1.50
revolving & non-revolving limits. 40% - 60% 1.00
Less than 40% 0.00
Score
Criteria Weight Parameter Score Actual Parameter
Obtained
E-3 Compliance of Covenants 2% Full Compliance 2.00 Full Compliance 2
Some Non-Compliance 1.00
No Compliance 0.00
E-4 Personal Deposits 1% Personal accounts of the key 1.00 Personal accounts of 1
business Sponsors/ Principals the key business
are maintained in the bank, Sponsors/ Principals
with significant deposits are maintained in the
bank, with significant
No depository relationship 0.00
deposits
Total Score- Relationship Risk 10.00 9.50
Grand Total - All Risk 100.00 68.00

Credit Risk Grading Model

 Note: All calculations should be based on annual financial statements of the borrower (audited preferred).

Credit Risk Grading Model