You are on page 1of 14

Corporate Finance Confidential

Credit Appraisal Report of Fast Corporation (Pvt.) Ltd. Section 1.Executive Summary: 1.1 The Proposal: Term finance facility of Tk. 20 million to Fast Corporation (Pvt.) Ltd. to meet workin capital re!"irement 1. The Client: !roup "ame Client "ame #ddress : Corporate #ddress : Factory Sector "ature o% &usiness 'elationship ("e()Existin*) &ac+*round o% the Company: • • Fast Corporation (Pvt.) Ltd. was incorporated in $::+. 4nitially, t)e company;s main &"siness was importin and tradin c)emical. 4n 200$ t)e company started marketin 6 sellin of #erman 6 <apan ori in writin and drawin instr"ments "nder t)e &rand name of =Fa&er Castell> and =Artline>. • • %ow, t)ey are importin Fa&er Castell writin 6 drawin instr"ments from 4ndonesia and 4ndia. 4n 2002, t)e company started marketin of ad)esive prod"cts. Later t)e sponsors of t)e company diversified t)eir &"siness and entered directly into man"fact"rin of ad)esive, tapes and formed two new companies namely Petropl"s Ltd. and Fast Tapes 6 C)emicals Ltd. • • Fast Tapes 6 C)emicals Ltd. acts as &ackward linka e of Fast Corporation (Pvt.) Ltd. T)e company )as $?0 types of writin and drawin instr"ments. %ame of t)e ma0or prod"cts are appended &elow on t)e &asis of prod"ct cate ory7 SL "o. $ 2 ' • Product Cate*ory @ritin and drawin instr"ments (Fa&er Castell 6 Art Line) Ad)esive Tapes "ame o% the products Color pencil, lead pencil, sketc) pen, pad, s)arpner, refill, eraser etc. (ynt)etic resin ad)esive, synt)etic r"&&er ad)esive, s"per l"e, lamination ad)esive, press"re sensitive ad)esive etc. Fast Tape, Power Tape. Fast #ro"p Fast Corporation (Pvt.) Ltd. ()arif *ansion (+t) floor), -./-+ *oti0)eel C1A. 2)aka/$000. 2'+13, Te0 aon 41A, 2)aka/$205 Tradin *arketin 6 sellin of #erman 3rand7 Fa&er Castell writin 6 drawin instr"ments, and distri&"tion of ad)esive and tapes 89istin Client 89istin since 200: #pplication $ate $0 %ovem&er 20$'

To cope "p wit) t)e e9istin market demand and maintain stock at district level (89istin 6 new prod"cts) for ens"rin 0"st in time s"pply of retailer demand, t)e client re!"ires additional f"nd. T)erefore, t)e client approac)ed Prime Finance for an amo"nt of Tk. 20 million as workin capital.

• •

Fast Corporation (Pvt.) Ltd. is an e9istin client of Prime Finance. T)e repayment &e)avior of t)e client is satisfactory. *r. AafiB A)med is t)e *ana in 2irector and *rs. (aif"nna)ar *a)eno, is t)e 2irector of t)e company )oldin +-C and 2-C s)are respectively.

1., Exposure - Payment Status o% Fast Corporation (Pvt.) Ltd. (ith Prime Finance - .nvestment Ltd.

Appraisal Report of Fast Corporation (Pvt.) Ltd.
PRIME FINANCE

1

000..million in favor of Prime Finance 6 4nvestment Ltd.000. 42CP s)all &e c)ar ed G $ C )i )er t)an t)e interest rate applied for calc"latin loan instalment. (tat"s7 Hnclassified 1.0?0 '-?. till f"ll and final settlement of t)is facility.?-'.000 ( Twenty million) To meet workin capital re!"irement $+C p.000.. *ont)s TF.nterest $urin* Construction Period .0-. '..+?2.nstallment . namely7  C.000 .'-.22?:.per mont) 2is&"rsement will &e made only after completion of sec"rity doc"ments and ot)er formalities to t)e satisfaction of Prime Finance.nstallment 8ode o% $is/ursement Execution 8ode o% 'epayment #dvance .3 Company Pro%ile: Appraisal Report of Fast Corporation (Pvt.1 $ecem/er 01. Lien on T2R of Tk. $. AafiB A)mad Security 7  *rs..a. 2+ / / / / Paid 2/ / / / 1$ $ 2 / / / / 2'P# (Amo"nt in Taka) Status Re "lar Re "lar ("ccessf"lly closed ("ccessf"lly closed ("ccessf"lly closed ("ccessf"lly closed $'.nterest %or delayed payment 7 7 7 7 7 7 7 7 7 7 7 7 Term Finance TF. +$'.000.2.+?2. '. $.000 '.?..000 'ental ??0.000 $0.+-' 2.-'0 $''.000.-. 2. #*reement "o TF2D20$'10$$ LA2D20$$102$ TF2D20$$100TF2D20$01005 TF2D200:100? LA2D20$$10$? Period ?5 '. 2C )i )er t)an t)e interest rate applied for determinin loan instalments amo"nt for t)e days for w)ic) t)e defa"lt contin"es. 4mmediately after t)e final dis&"rsement T)ro" ) '. (T)irty si9) post dated c)e!"es (8nd *ode) to &e provided in advance %ill 42CP will not &e capitaliBed.:00.) Ltd.+20. PRIME FINANCE . '. '.Corporate Finance Confidential #s on .7 Financin* Terms: Type o% Facility Finance #mount Purpose .-. Finance #mount $-.'$+ Proposed Facility 20.000 3345 04000 ET)e client informed t)at t)ey will pay all over d"es &efore dis&"rsement.? / / / / 13467 4.'+0 $ue .nterest 'ate Term .000.& Status 7 *r.05-.'$+ 1. 20.16 Total Cumulative Exposure (i% approved) '-. '. Existin* %acility $-. Corporate #"arantee of Fast Tapes 6 C)emicals Ltd. Personal #"arantee of all t)e 2irectors of t)e company..000 $0. (aif"nna)ar *a)eno C43 report dated + <an"ary 20$?.000 $0.

-5.00:. 2-.'$+ $+?.. o% .00 million Tk.-$+. 220.-.:?5$. $$.5-$.2:2 604?114.$0.?.' '$+.+: $?.. 3RAC 3ank Ltd.? 'atio #nalysis: Particulars !ross Pro%it mar*in (:) 1peratin* Pro%it 8ar*in 01.0'-.':' $2.?$ $?.0.5-0.?.000 3?47164? @ Total @orkin Capital Re!"irement is Tk. Prime Finance 6 4nvestment Limited 0'/005?-5 00'/200/52$51Co/0' T)e present workin capital scenario is as follows7 Particulars Raw *aterials (4mported) Raw *aterials (Local) Finis)ed #oods Acco"nts Receiva&le Admin 6 (ellin 89penses !ross <or+in* Capital 'e>uirement Less7 A1C paya&le "et <or+in* Capital 'e>uirement Less7 89istin Total Limit of F"nded Facilities from 3ank1F4s Client9s E>uity Contri/ution Tied=up Period $20 .5?.:.-$? $$+.05+.00 01 2.+'.5.:+-.5 <or+in* Capital Estimation: Private Limited Company $::+ *r.?.?:0 220.+0:.---..nstitutions Trade License "o.?22 $$.'5:.000.:-+.2++ (Amo"nt in Taka) 011 +$+.-. Rest of t)e amo"nt will &e mana ed &y t)e client from t)eir own so"rce. Profit 6 Loss A1c and Cas)/Flow (tatement are iven in Anne9"re/4 1.-+ Appraisal Report of Fast Corporation (Pvt.6 Financial Ai*hli*hts: 01.5+2 52.'--2?.02-.$ million 89im 3ank Limited. 1. $.Corporate Finance Confidential Constitution) Le*al Status $ate and "o.5.. PRIME FINANCE .'+:.?$ million o"t of w)ic) t)e client approac)ed Prime Finance for an amo"nt of Tk.'+'.+:: +-.55+.05' '+. 2--.Financial .0?0.++.::5. Tk.-0:.) Ltd.:+$ 22.+:.'00 $5:.++0. .'50 ??2.0?$ '2:.':'.$+. T. )oldin +-C s)are.0 '0 '0 '0 2 #mount in Ta+a 2$2.-0:.?+0.+. 2+.5. P)oeni9 Finance...?+ 011 2.' $?-." 1.5$5.:05.0.5?? 2.:'2 $0?.$-. AafiB A)med is t)e *ana in 2irector of t)e company.20? $$2..?+$ 5?47164? @ 2$0.-5$ '+5. 20 million.$+? ?2'.5:?.0$-.$:+ Particulars Turnover) Sales !ross pro%it 1peratin* pro%it "et pro%it Total assets Total lia/ilities Total current assets Total current lia/ilities Total e>uity ((o"rce7 A"dited Ann"al Report for t)e year 20$$ 6 20$2 and *ana ement prepared Report for t)e year 20$') %ote7 2etail 3alance ()eet.02'..+'.ed Capital Paid up Capital 8ain &an+ers ..'5' 01 :.:0'. :.ncorporation 8ain Sponsor9 name (ith : o% shareholdin* #uthori. Hnion Capital.00 2.+ :'. 3F4C..5$5 2?.-$.

Financial hi*hli*hts o% sister concerns: As at '$ 2ecem&er 20$' "ame o% the Company Fast Tapes 6 C)emicals Ltd Petropl"s Limited 1.. It)er concerns of Fast ro"p are profita&le..:2.22+.$'.5' '2:.nventory Turnover (x) 'eceiva/le Turnover (x) Current ratio(x) $)E 'atio $e/t Service Covera*e 'atio (x) "et <orth  1perational E%%iciency: $'.:. ??2.$+.. 1.5.) Ltd.:0 $'.s repayment record wit) "s and ot)er &anks and financial instit"tion is satisfactory. .2''.. we will take T2R of Tk.---.5:?.+2 $0.0.'52 $'.0.'0 . T)e de&t service covera e ratio )as also increased &eca"se lon term de&t in 20$' compare to 20$2 )as decreased. F"rnit"re 6 Fi9t"re.$+ ??2.11.52 $2.2++ $0. . 1.@.:.-.$25. T)e client. PRIME FINANCE 7 .'52 in 20$' compared to Tk. Payment Per%ormance: Payment Status (ith Prime Finance Payment Status (ith 1ther /an+s) F.) Ltd.+$.?-7$ 0.::5. @)ereas Lia&ilities decreased d"e to settlement of some lon term loans. w)ic) may &e t)e secondary so"rce. 5.5:?.16. &asis o% %ixation o% Lendin* 'ate: : Lendin Rate Cost o% %und @ei )ted avera e cost of f"nd (As on %ovem&er 20$')E $'..Corporate Finance Confidential "et Pro%it mar*in (:) .05. '2:.5$$.$ (Amo"nt in Taka) "et <orth '-'. ?.  "et <orth: T)e company )as net wort) of Tk..million from Fast Corporation (Pvt..$' .  Payment E%%iciency: 4nterest Covera e Ratio is sta&le in 20$' compared to 20$2 w)ic) indicates efficiency to meet financial e9pense.? -+.$5 $.s T)e client. Assets increased d"e to closin inventory and some addition of Iffice 8!"ipment. 1. *oreover.10.'.::5.+?: $+?..257$ $.nterest Covera*e 'atio (x) ..2++ in 20$2.:2 0.552 "et Pro%it .-' $$. Source o% 'epayment: Primary Secondary T)e primary so"rce of repayment of de&t will &e from t)e cas) enerated from t)e &"siness of t)e company. Turnover .s repayment record wit) Prime Finance is satisfactory.11.$+0.$:+ 4nventory T"rnover Ratio )as decreased in 20$' compared to 20$2 &"t it is accepta&le considerin political sit"ation in 3an lades).? .2:-.$57$ 2.50 0.00 Appraisal Report of Fast Corporation (Pvt.$50 .' 0.

?3 %ot 89ceeded.1. T)erefore.nterest 8ar*in E (o"rce7 Acco"nts 2ept.Corporate Finance Confidential *ar in &efore *ana ement 89penses ((pread) *ana ement 89penses "et . @it)in '0C of PF4 e!"ity. -0. 89ec"tive Committee 3oard 3an lades) 3ank A&ove Tk. 89pos"re in Tradin sector as on '0 %ovem&er 20$' was 0.<an"ary 20$? Appraisal Report of Fast Corporation (Pvt. *aintain 'C wit)in t)e same sector %ot to &e older t)an ' mont)s @it)in t)e ran e specified for t)is sector.1 . PRIME FINANCE 3 .00C of t)e total portfolio. C43 report dated + <an"ary 20$?. Compliance '. 89pos"re wit) Client 4nterest Rate C43 Report *a9im"m '0C of Prime Finance e!"ity wit)o"t 3an lades) 3ank approval.. (tat"s7 Hnclassified Approvin A"t)ority Hp to Tk. T)e client )as its own distri&"tion c)annel and marketin forces in si9 divisions and . Aence t)e *ana ement )as decided to place t)e proposal &efore t)e 89ec"tive Committee for approval. #rowt) rate of sales is .:?C from t)e year 20$2 to 20$'. %1A T)e company )as $?0 types of writin and drawin instr"ments "nder t)e &rand name of =Fa&er Castell> and =Artline> w)ereas Fa&er Castell is )oldin ?2C market s)are. T)e client o&tained 50 as CR# score w)ic) is accepta&le rade. • T)e mana ement of t)e company is rep"ted as well as t)e 2irectors of t)e company )ave lon e9perience in t)is sector.. if t)e present proposal is approved.00 million.'$. • • @ritin and 2rawin instr"ment will )ave )i )er rowt) in f"t"re wit) t)e rise in literacy rate. 1. 2ated on $.00 million. • Fast Corporation (Pvt. -0. )as &een doin &"siness since $::+. • • T)e repayment &e)avior of t)e client wit) Prime Finance is satisfactory.? districts across t)e co"ntry. A&ove '0C of e!"ity of Prime Finance 6 4nvestment Ltd 8nvironmental Clearance Certificate (8CC) 1.-0 1. t)e proposal is wit)in t)e approval a"t)ority of t)e 89ec"tive Committee.) Ltd. Credit Policy Compliance: Particulars (ector wise 4nvestment (It)ers) Lendin* !uideline %ot to e9ceed 2-C of total investment of Prime Finance. Busti%ication o% Financin*: • As per approval policy.) Ltd. t)e sector wise e9pos"re will remain wit)in t)e limit of 2-C. T)e &"siness of t)e company is r"nnin profita&ly.

t)e client )as its own distri&"tion c)annel and marketin forces in si9 divisions and . AafiB A)med *rs. *arko Fis)er. 'elation (elf @ife Position *ana in 2irector 2irector Corporate Finance Confidential Experience in years 2' $' Shareholdin* (:) +2100 Corporate o/Cective) Strate*y) Dision #ctivities #/out product To &e one of t)e most preferred or aniBation in 3an lades) • *arketin 6 sellin of #erman ori in writin 6 drawin instr"ments (=Fa&er Castell> &rand) as well as distri&"tion of ad)esive and tapes prod"cts.(. Cello. %1A %1A • *ana ement of t)e company )as lon &"siness e9perience in t)is line of &"siness • %ew prod"ct development • (tron 3ackward Linka e Stationary: %otraB ((3).1 #/out the $irectors . #cademic >uali%ication *. %3F4 and own so"rce. 3ar er (wan.? districts across t)e co"ntry.Section . To diversify t)e &"siness. 2aco 3ank. Alam. ProCect $etail: • • • To satisfy t)e latent demand of c"stomers. T)e company proc"res raw materials from local and forei n co"ntries. (tationary s)ops 3esides $-2 distri&"tors. $ 2 "ame *r. *atador. *onte9.) Ltd. 8aCor &uyers )Clients) Forei*n Clients #ccess to distri/ution channels) $istri/utors and their credi/ility #ccess to 'a( 8aterials) Sources o% ra( 8aterials 8aCor Suppliers ) dependency on a particular supplier Environment issues Critical success %actor) Expected *ro(th Competitors) 8aCor players in the industry <or+in* capital re>uirements) source o% (or+in* capital 'elationship (ith *roup companies #uditor Appraisal Report of Fast Corporation (Pvt. PRIME FINANCE 5 . 8cono #dhesive : Fevicol. 2epartmental store. *erit. To ma9imiBe t)e "tiliBation of e9istin wealt).Shareholdin* Structure: T)e s)are)oldin str"ct"re of t)e company is as follows7 SL. "o. (tationery prod"cts7 (Fa&er/Castell 3rand) • Power • Fast • Assist • Craft • Comi9 • Artline Li&rary s)ops. %1A F. F)ale!"e 6 Co.( Total . Ilympic. (aif"nna)ar *a)eno #*e in years ?5 ?. *. Com *. The Client Pro%ile .

Aasan #eneral *ana er *r.3 8ana*ement Stren*th: (ponsor 2irectors and mana ement of t)e company )ave lon e9perience in t)is line of &"siness. and ot)er competitors are appended &elow7 Appraisal Report of Fast Corporation (Pvt.000.000. *ofi0"l Fader F)an (*ilton) Asst.) Lia/ilities (T+.74. + "ame $esi*nation #cademic Guali%ication Post #rad"ate Post #rad"ate Post #rad"ate Post #rad"ate Post #rad"ate Post #rad"ate Post #rad"ate Experience (Hears) $+ Jears 2. (aif"nna)ar *a)eno 2irector 3"siness Capital Land 6 3"ildin Total "et (orth Dalue (#sset E Lia/ility) Total "et (orth Dalue (#sset E Lia/ility) . (aif"nna)ar *a)eno.020.:00 ?.) Ltd.? ?@411@40@7 #sset Dalue (T+.) Lia/ilities (T+. . *d. wife of *r. #eneral *ana er *r.743. 8kram"l A"da Aead If Acco"nts 6 A"dit. . 222 20 5? <or+ers 200 0 0 00 Total 2+5 2'+ 25 37. years $5 Jears $2 Jears $' Jears $0 Jears $+ Jears (Amo"nt in Taka) #sset Dalue (T+.000 .000 ?'5.) 2:0.. ()e )as more t)an $$ years e9perience in t)is line of &"siness.?'2 $. "et <orth o% the $irectors: As at '0 <"ne 20$' 'elationship (ith the "ame Property o(ned Client Cas) 6 3ank 3alance 4nvestment 3"siness Capital *r.@3?0 .. Anwar Parve0 Asst. and Petropl"s Ltd. (aif Hd 2in A)med Asst. *r.6 Succession Plan: *s.000 $. *d. AafiB A)med. Aelal Hddin Asst.Employees: Sl.. $ 2 ' ? . ..200.-50 $50. 8ar+etin* #spect: T)e market s)are of Fast Corporation (Pvt. ()e is also t)e 2irector of Fast Tapes 6 C)emicals Ltd.?. %asir Hddin Iperational 2irector *r.:00 ?@43??4 . "o.000 . #eneral *ana er *r.5 Total "um/er o% Employees: Personnel Cate*ory Tec)nical1Prod"ction *arketin 1(ales Acco"nts1Admin Total Executive -2 $5 63 "on Executive 2.*.430@40 *r.000 $?:.7 8ana*ement ) Fey Executive .-2 $2.'. 75@41. is t)e 2irector of t)e company. #eneral *ana er .:. #eneral *ana er *r.000 2$. AafiB A)med *ana in 2irector Land 6 3"ildin It)er Assets Total "et (orth Dalue (#sset E Lia/ility) 'elationship (ith the "ame Property o(ned Client Cas) 6 3ank 3alance 4nvestment F2R *rs. (.?@4@ ? 1 .) Ltd. PRIME FINANCE 6 .Corporate Finance Confidential .) $':.$'5 :.'5.220.

Corporate Finance Confidential (l. Apportion..million till f"ll and final settlement of t)e Loan. ("per #l"e etc. Tradin 6 *an"fact"rin different types of ad)esive s"c) as Toa &ond. 2 8conomic Cate ory $ Premi"m Cate ory Tapes C)ina 3an lades) 3an lades) 3an lades) 3an lades) #/rasive (Emery Paper) C)ina C)ina 3an lades) 3an lades) 3an lades) 2L 6 2. Appraisal Report of Fast Corporation (Pvt.1 Security Schedule: Sl. Resin 6 w)ite Ad)esive. Flow fi9 and Te9tile A"9iliary C)emicals. P"tty. %o.. Resin Ad)esive. @ood Care. Fast Tapes 6 C)emicals Ltd 200- Petropl"s Limited 2002 Section .Payment Per%ormance . "o. fi9ed 6 spray a&le.@. PRIME FINANCE ? . $ $escription o% Securities Lien on T2R of Tk. (and paper . Security .DE P'1$2CT %ame of t)e 3and C *arket Iri in 1Company ()are Fevicol Power 3ond /3er er Fast Kickers Alteco Ro&icol Total 2acco Fopa Fast Fast Alco *a ic (wan Total (cotia Rain&ow Fast Total 2aft Packa in It)ers Total Flyin @)eel Flyin Arrow Aevey 2"ty 89cel Camel /Fast (ail Total 4ndia 3an lades) 3an lades) 3an lades) 3an lades) 3an lades) 3an 3an 3an 3an 3an 3an lades) lades) lades) lades) lades) lades) ?2 5 '2 5 100 '0 22+ 5 $00 -0 $'100 '0 +0 $00 $20 2'0 $0 $00 %ame of t)e ma0or items $ Premi"m Cate ory R"&er Ad)esive. Iffice #l"e etc. . s"per l"e. Cate ory #$AES.-L Packa in Tape 2 8conomic Cate ory $ 8conomic Cate ory 8mery. #l"e stick. #/out the Sister Concerns: "ame o% the Company Hear o% Esta/lishment "ature o% &usiness *an"fact"rin different types of tapes 6 ad)esive prod"cts in t)e name of =Fast> &rand s"c) as Packin Taps.) Ltd.

0 "ovem/er 01.00 $-. is satisfactory. is satisfactory.0.Corporate Finance Confidential 2 ' Corporate #"arantee of Fast Tapes 6 C)emicals Ltd.@0 1utstandin* amount -.00 20.00 20.? $$.2.+0 $:. Personal #"arantee of all t)e 2irectors of t)e company.) Ltd..) Ltd. as on .:0 .05 1.00 $-.?+ '0..00 2-.00 -?.2 $'...?+ 2$'.$2 .@ 00 $.2.00 $-. $2.: (Amo"nt in *illion Taka) Sanction 1utstandin* #mount #mount .00 $..@ Concern "ame o% &an+ Type o% Loan CC L1C LTR *P4 L1C LTR RL Term Loan Term Loan Term Loan Term Loan Term Loan Term Loan Term Loan Term Loan Lease Finance 89im 3ank 3RAC 3ank Fast Corporation P)oeni9 Finance 3F4C Hnion Capital %ational Ao"sin 6 Finance Corporation Ltd Prime Finance Su/ Total CC L1C LTR Fast Tapes 6 C)emicals P"&ali 3ank Su/ Total !rand Total Summary o% the a/ove !roup Lia/ility (Amo"nt in million) Particulars Total %on f"nded lia&ility Total F"nded Lia&ility !rand Total Sanction amount 252. 7 ':.00 +.00 .00 $-.?.. Lia/ility Position o% Fast Corporation (Pvt.00 +.5. (aif"nna)ar *a)eno .00 2+$.00 20.00 1.@ ?0. $-.) Ltd.2$ -0.5? 5@.52 $:.. @e also disc"ssed over p)one to t)e concern Relations)ip *ana er (Credit 2ivision) of 3RAC 3ank Limited re ardin payment performance of Fast Corporation (Pvt.@ Con%idential opinion %rom /an+s: "ame o% the &an+ 8M4* 3ank Limited (*oti0)eel 3ranc)) 3RAC 3ank Limited (#"ls)an 3ranc)) Comments @e disc"ssed over p)one to t)e concern Relations)ip *ana er (Credit 2ivision) of 8M4* 3ank Limited re ardin payment performance of Fast Corporation (Pvt.00 2+...:$ 7?.?5@..00 ?0.?$ '0.) Ltd. $2.?2 $'.) Ltd.00 31.) Ltd. Ae told "s t)at t)e payment performance of Fast Corporation (Pvt..00 5.:0 33.++ 0.?2 +.-..00 -0.0. namely7  *r. AafiB A)mad  *rs.00 20. Ae told "s t)at t)e payment performance of Fast Corporation (Pvt. PRIME FINANCE @ . Appraisal Report of Fast Corporation (Pvt.

Corporate Finance Confidential From t)e financial performance of '$ 2ecem&er 20$'. C43 report of t)e client s)ows t)at t)e client )as clean C43 (tat"s. it reveals t)at t)e company enerated7 Particulars %et Profit Add7 2epreciation 1peratin* cash %lo( Less7 Proposed 4nstallment (if approved) Fund availa/le %or repayment #mount in million T+. t)e flow wit) t)at is Appraisal Report of Fast Corporation (Pvt.. $'. (o it is e9pected t)at t)e client will pay t)e installment of Prime Finance on time. it is e9pected t)at t)e company will &e a&le to pay its de&t o&li ation from its &"siness T)e repayment &e)avior of (omatec P)armace"ticals Limited wit) Prime Finance and ot)er 3anks is satisfactory. Credit $ecision 'ationale 7.+$ 1. 'is+ .?. <illin*ness to pay Section 7.8iti*ations: Cate*ory o% 'is+ Financial 'is+ 'is+ Particulars Credit Risk 8iti*ations  89istin profit indicates t)at company will )ave s"fficient cas) to meet its de&t o&li ation.1 Credit 'is+ !radin*: Criteria <ei*ht Financial Risk 3"siness14nd"stry Risk *ana ement Risk (ec"rity Risk Relations)ip Risk #**re*ate Score 'is+ !radin* Score 1/tained ?+ $$ $$ 0' 05 ?0 #ccepta/le 7.51 #/ility to pay (o. PRIME FINANCE 10 .-1 @.15 5.?$.  Previo"s performance of t)e client "s and ot)er &anks1F4s indicates t)e client repayment record satisfactory.) Ltd.

T)e &"siness of t)e company is r"nnin profita&ly.s is satisfactory <ea+ness)Threats Considerin all t)e aspects of t)e client. $::' E Till date.<ea+ness: Stren*ths T)e company )as $?0 types of writin and drawin instr"ments "nder t)e &rand name of =Fa&er Castell> and =Artline> w)ereas Fa&er Castell is )oldin ?2C market s)are. 7. we may f"rt)er e9tend o"r &"siness wit) t)e client.5 Conclusion: • • • T)e company. T)e client )as its own distri&"tion c)annel and marketin forces Forei n c"rrency fl"ct"ation may ne atively affect t)e in si9 divisions and . wit) "s and ot)er 3ank. E 4n processin t)e proposal.3 $eclaration: T)e *ana ement of Prime Finance )as scr"tiniBed t)e proposal and declares as "nder7 E T)e Proposal does not contradict any o&0ect Cla"se of t)e company E T)e Proposal is wit)in t)e norms of 3an lades) 3ank E T)e Proposal does not contradict any Cla"se of t)e Financial 4nstit"tion Act.$57 $) T)e company )as s"fficient c"rrent assets a ainst c"rrent lia&ilities (CA1CL7 $'. (o far t)e company availed si9 finance facilities from "s and t)eir payment performance is satisfactory. Stren*th . 7.s e9istin &"siness r"nnin profita&ly. d"e dili ence )as &een e9ercised &y t)e *ana ement and all t)e information w)ic) )ad come to t)e knowled e of *ana ement is disclosed to t)e 3oard. is an e9istin client of Prime Finance. profita&ility of t)e company.:$7$) Lon e9perience of t)e key persons of t)e company in t)is line of &"siness. E %one of t)e employees of Prime Finance 6 4nvestment Limited or t)eir family mem&ers )as any interest in Fast #ro"p. T)e repayment &e)avior of Fast Corporation (Pvt. no finance facilities e9tended to t)e company )as &een resc)ed"led and no le al action )as &een taken a ainst t)em.) Ltd. Aowever. 7.) Ltd. 4f t)e client &e a&le to contin"e satisfactory repayment record wit) "s. capital and ot)er e9pendit"re 4nade!"ate e9perience of t)e key persons in t)e in t)e same ind"stry Capital str"ct"re of t)e company s)ows t)at t)e company )as ade!"ate de&t/ e!"ity ratio (2187 0.? districts across t)e co"ntry. #rowt) rate of sales is .) Ltd.. 7. 20 million in favor of Fast Corporation (Pvt. t)is sector. T)e payment performance of Fast Corporation (Pvt. PRIME FINANCE 11 . Appraisal Report of Fast Corporation (Pvt..7 'e(ard )'elationship Strate*y: Fast Corporation (Pvt. t)e client will *ana ement of t)e company )as lon &"siness e9perience in ad0"st t)e sales price accordin to fl"ct"ation of c"rrency rate. T)e (ponsors )ave lon e9perience to mana e t)e &"siness.) Ltd. wit) Prime Finance is satisfactory.) Ltd.Corporate Finance Confidential Levera e Risk Li>uidity 'is+ 1perational 'is+ 4ns"fficient cas) flow to meet t)e de&t o&li ation. we may approve t)e proposal of term finance of Tk.:?C from t)e year 20$2 to 20$'.

) Ltd.1 2?. PRIME FINANCE . Fa>rul .?-.1 (#mount in Ta+a) Particulars P'1PE'TH .6. 'ecommendation: *ana ement reviewed t)e proposal and recommended to place t)e proposal &efore t)e 89ec"tive committee for approval. &alance Sheet #s at $ecem/er .000. Fast Corporation (Pvt. 8ohammad "adim 8ia (enior Ifficer 8.Corporate Finance Confidential 7.1640134@61 $$5.000 .+05 1 Appraisal Report of Fast Corporation (Pvt..5-.+2$ 01 16?46.000.slam 8aCumder (enior *ana er 8d.000 0466045?5 $0:.) Ltd.nvestment Current #ssets: 4nventories 01... +5.000 16745?740?.000. #hsan Fa/ir Fhan 2ep"ty *ana in 2irector #sad Fhan *ana in 2irector #nnexure=.?5.#SSETS: "on Current #ssets . 16?40064@67 2:. 'e.@40?1 2?.aul Aa>ue 89ec"tive Kice President 8d.2?5 011 16@45?@47.

+-$ :.+2? 2-0.0+? ? 4@6346@@ +.?1 2.:..T. $$-.+5:.000 5:.-$.1 (Amo"nt in Taka) Particulars 1peratin* Pro%it (N) 2epreciation Cash Flo( 01.0.#&.?$.5'+.000 $00. 7 .-5 3 740 . .?-'.?. Fast Corporation (Pvt..-$2.:?'..?+-.$'.000 25.5.50$... 1074?314165 +.ES: Share Capital A"t)oriBed Capital7 $0.+'.?-0 2$.0 ?745 ?453@ (o"rce7 A"dited Ann"al Report of 20$$.::: 340?64071 2.?-5.52?.2:' 3 740 . +?+. 20$2 and *ana ement prepared report 20$' Fast Corporation (Pvt.000 $00.2++ ?..) Ltd. 20$2 and *ana ement prepared report 20$' C.+$'.430@4656 ..$$'.5473@4@ 1 (o"rce7 A"dited Ann"al Report of 20$$..L.000 :..6460@4?77 '. +?+.4317 (o"rce7 A"dited Ann"al Report of 20$$. 173400@4 07 1461545 3 1756 3? @ 01 1074?314165 $..000.000 $00.'5:..'2 ':.?5:.P'1D.ES .-05 173400@4 07 5..$0? -$.5.-0 .S.25' 1. .T.000.52?.?25 1?@4?304?6 $0.?-.?+$ 20.000.4@75 $0.+02.6.) Ltd.000.6.000.50? 043574@.000 ordinary ()are ofTk.002 @54@0?4167 011 +$+.1 (Amo"nt in Taka) Particulars %et (ales Less7 CI#( !ross Pro%it Less: 1peratin* Expenses: Administrative and (ellin 89penses 1peratin* Pro%it Financial 89pense "et Pro%it 01.55:.?2$ / .0'-.5':.+22 '0.0:' :.L..-.4@75 +-.$5..-?:..'' $5.50? ?64?7?461 01 :.T#L .Corporate Finance Confidential Acco"nts Receiva&les Advance.L.5+-..2-2 22+.'0 10545704?05 011 ? 4@6346@@ $.0??.'00 -2+. PRIME FINANCE 1.$--.??2.+'.Lia/ilities $-0.-2.1" Acco"nts Paya&le Lia&ilities for 89penses 4nter Company Transaction Total Capital .-?: 46654.?00 ?.':?.?2' '?.0 -.& #nalysis Appraisal Report of Fast Corporation (Pvt.'.000 ordinary ()ares of Tk.'$+ 22.-. 20$2 and *ana ement prepared report 20$' #nnexure=..2-.000 7 .6?4.000 +-0.':'.'$:.52' 25.6?4.#ssets C#P.ncome Statement For the year ended $ecem/er .52-.000 '20.000 22'.2+0.4317 $0. Cash Flo( Statement For the year ended $ecem/er .00$.430@4656 $0. $00 eac) Paid Hp Capital7 $.) Ltd.?. 2eposits 6 Prepayments Cas) in Aand 6 at 3ank Total Property ..2:.2::.??+.2.?$0 2.000.000 ?''.#&.$00 eac) Provision for Ta9ation ()are *oney 2eposit Retained 8arnin s Loan from 3ank Lease 6 It)er Finance C2''E"T L.+-.5:2 .2$5 63431643?1 $?2.2':. $.

.+-') $52.??'.-$' $i%%erence .: 1utstandin* Principal #mount provided /y client as o% "ovem/er 01.'+'. PRIME FINANCE 17 .-0..02-. Iffice 8!"ipment 6 F"rnit"re Lia&ilities decreased d"e to settlement of some lon term loans.$5- Appraisal Report of Fast Corporation (Pvt. 2.?'2 Comments Assets increased d"e to increase in $.:2: "et <orth Comparison: Particulars Total #sset 01.-.& 20$.'$.-?+.0.$:+ ('. 20-.' ??2.Corporate Finance Confidential Fast Corporation (Pvt. %et wort) increased d"e to retained earnin s.02'. 4nventories 2.5$5.ncrease) ($ecrease) $?-.) Ltd..00'.+:2.::5. 1utstandin* #mount as o% Banuary 017 #s per C.:?011 '+5.) Ltd.---..'52 $$+. -2?. Total Lia/ility "et <orth 5$.