MCC- 9099/21

IPDC FINANCE LIMITED

APPROVER-1 APPROVER-2 APPROVER-3 APPROVER-4 APPROVER-5
 APPROVED
 CONDITIONALLY APPROVED
 DEFERRED
 DECLINED
CREDIT PROPOSAL (RENEWAL AND TEMPORARY VACANT OF RJSC FIRST RANKING CHARGE)
Name: Tech Valley Networks Limited (TVNL) Date: November 07, 2022
Relationship: Existing (Since October 2019) Authority: MCC
Establishment May 27, 2008 RM: Mr. A.K Aftab Uddin
Business Nature: IT Solution Department: Supply Chain Finance
Customer Category: Large Branch: Head Office
Client
CRG Score: 77 (Acceptable)
Eastern Bank Ltd., MTBL, Community Bank Bangladesh
Major Financer CIB: STD as on Oct 20, 2022
Ltd, Meridian Finance Ltd & IPDC Finance Ltd.
DVC: Verified (FY 2020-21)
Grameenphone Limited, Banglalink Digital Communications Ltd., Robi Axiata Ltd., Dutch Bangla Bank
Debtor/s
Ltd., Eastern Bank Ltd., Bkash Ltd. & Prime Bank Ltd.
EXISTING FACILITIES PROPOSED
Exposure
Concern Limit Outstanding Expiry Date Facility Limit Pricing Expiry Date
BDT 95.00 M Nil Factoring BDT 95.00 M 9.50%
TVNL 9-Oct-22 9-Oct-23
BDT 50.00 M Nil WO (Inner) BDT 50.00 M 9.75% + BDT
BDT 10.00 M BDT 2.42 M 1-Sep-26 Lease - - - 00.00 M
ADNT
BDT 4.80 M BDT 2.24 M 5-Aug-24 Lease - - -
Total BDT 109.80 M BDT 4.66 M - - BDT 95.00 M - -
Note: ADN Telecom Ltd (ANDT) is concern of Tech Valley Networks Ltd.
EXPOSURE LIMIT CURRENT PROPOSED
Single Borrower Exposure Amount BDT 95.00 M
% of IPDC equity 1.46 %
Group Exposure Amount BDT 99.66 M
Unchanged
% of IPDC equity 1.53 %
Ind. Exp. (Miscellaneous) Amount BDT 4,585.28 M
Max 10.00 % of Investment Portfolio % of IPDC Investment Portfolio 6.52 %

PERFORMANCE WITH IPDC (November 2021 To November 2022) (Amount in BDT’M)

Factoring Work Order (Inner)
Total invoice received 47.88 M -
Total disbursement (including refund) 51.47 M 2.58 M
Limit Utilization 0.57 Times
Total collection 51.57 M 45.01 M
Number of invoices rejected/ amended Nil Nil
Current Sales ledger balance (As on Nov 1, 2022) 15.12 M Nil
Current loan balance (As on Nov 1, 2022) Nil Nil
Maximum loan balance 0.09 M 42.39 M
Current beyond limit Invoices Nil Nil
Current overdue invoices (As on Nov 1, 2022) Nil Nil
Maximum Number of day’s overdue beyond grace period N/A N/A

Present Issue:
Tech Valley Networks Limited is enjoying Factoring of Accounts Receivable (with recourse) facility and Work Order facility from IPDC. Since
approval of the facilities, IPDC created Hypothecation Charge against the above-mentioned facilities at that time. Which is currently positioned
the First Ranking charge at RJSC against the facilities of the client. However, Mutual Trust Bank Limited has sanctioned a composite facility
where First Ranking charge has been conditioned.

Now, client has requested to IPDC for temporary vacant of RJSC first ranking charge and authorization of “Memorandum of Satisfaction of
Mortgage Charge” to be executed for the charge creation of Mutual Trust Bank Limited.

Tech Valley Networks Limited is one of our most respectable clients and it holds an upright reputation in the industry as well. Providing them
with the Temporary Vacant of First Ranking Charge, IPDC financial risk is seemingly minimal. Moreover, IPDC will create Hypothecation charge
on fixed and floating assets of the company within 30 days again after Temporary Vacant of RJSC First ranking charge.

Moreover, Client has also requested for renewal and interest rate reduction of the above-mentioned facilities for next one year from the date of
current expiry, where others terms and conditions of the facilities will remain unchanged.

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i. Terms & Conditions: Renewal with Interest Rate Reduction of Factoring of Accounts Receivable (With Recourse) Facility
1. RENEWAL TERMS & CONDITIONS:
2. Particulars Existing Proposed
3. Facility Factoring of Accounts Receivable (with recourse).
4. Purpose To meet up working capital requirements.
5. Credit Limit BDT 95.00 Million Unchanged
6. Expiry October 09, 2022; Renewable; October 09, 2023; (Renewable)
7. General Credit Term 90 Days from invoice/bill date; Unchanged
Advance Payment Percentage 80.00% of gross invoice/bill amount; Unchanged
8. Rate of Interest 11.00% p.a.; 9.50% p.a.;
9. Penal Interest 2.00% p.a.
Cost incurred for collection, verification, submission and discounting invoices will have to be paid by
10. Other Clause
client @ 0.10% of invoice value.
11. Grace Period 15 Days from the original maturity date of an invoice;
a) Personal Guarantee of all the Directors of Tech Valley
Networks Ltd.
b) Corporate Guarantee from ADN Telecom Ltd. & InGen
Technology Ltd. (Supported by Board Resolution and
undertaking to amend MEMART by incorporating the
clause empowering to provide corporate guarantee, if
12. Security Unchanged
not legally enforceable by MEMART).
c) Assignment of payment / Lien Account from approved
debtors in favour of IPDC.
d) 2% SND on gross invoice value.
e) Hypothecation charge on receivables.
f) Other usual charge documents.
13. Additional Clause N/A
14. Debtor/s Limit
Credit
Name Existing Limit Proposed Limit Payment Method
Period
i) Grameenphone Limited BDT 90.00 Million
ii) Banglalink Digital Communications Ltd. BDT 80.00 Million
Assignment of Payment
iii) Robi Axiata Ltd. BDT 80.00 Million
90
iv) bKash Ltd BDT 50.00 Million Same
Days
v) Dutch Bangla Bank Ltd. BDT 70.00 Million
vi) Eastern Bank Ltd. BDT 70.00 Million Lien Account
vii) Prime Bank Ltd. BDT 70.00 Million
Total BDT 510.00 Million BDT 510.00 Million - -
The overall aggregate exposure against the debtor(s) not to exceed BDT 95.00 Million at any point of time & New Debtor/s may be added time
to time with approval of management.
15. Others clause: N/A

ii. Terms & Conditions: Renewal with Interest Rate Reduction of Work Order Finance Facility
No. Particulars Existing Proposed
1. Name of the Client : Tech Valley Networks Ltd
2. Type of Facility : Work Order Finance (Inner limit under Factoring facility)
3. Credit Limit : BDT 50.00 Million Same;
4. Expiry : Oct 09, 2022; Renewable; Oct 09, 2023; Renewable;
5. General Credit Term : 360 Days from disbursement date; Same;
6. Advance Payment Percentage : 65.00% on gross work order amount; Same;
11.00% p.a.; 9.75% p.a.;
7. Rate of Interest : Based on client profile and relevant risk parameters (IPDC will have the discretion to re-fix
the interest rate).
8. Additional Clause : N/A
9. Grace Period : N/A
10. Approved & Proposed Debtor :
Sl. WO Issuer Name Existing Credit Limit Proposed Credit Limit Credit Period Payment Method
i) Grameenphone Limited BDT 50.00 Million
Tagging of
ii) Banglalink Digital Communications Ltd. BDT 50.00 Million
Assignment of
iii) Robi Axiata Ltd. BDT 50.00 Million Same 360 Days
payment
iv) bKash Ltd BDT 50.00 Million
v) Dutch Bangla Bank Ltd. BDT 50.00 Million Tagging Lien

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No. Particulars Existing Proposed

vi) Eastern Bank Ltd. BDT 50.00 Million Account
vii) Prime Bank Ltd BDT 50.00 Million
Total BDT 350.00 Million BDT 350.00 Million
The overall aggregate exposure against the debtors not to exceed BDT 50.00 million at any point of time.
a. Personal Guarantee of all the Directors of Tech Valley a. Same;
Networks Ltd.
b. Corporate Guarantee from ADN Telecom Ltd. & InGen b. Same;
Technology Ltd. (Supported by Board Resolution and
undertaking to amend MEMART by incorporating the clause
11. Collateral : empowering to provide corporate guarantee, if not legally
enforceable by MEMART).
c. Tagging of Assignment of payment / Lien Account from c. Same;
approved debtors in favour of IPDC.
d. Hypothecation charge on receivables. d. Same;
e. Other usual charge documents. e. Same;
Through Tagging of Assignment of payment / lien account from approved debtors in favour
12. Payment Modality :
of IPDC of Factoring Facility.

(Amount in BDT)
MAJOR DEBTORS’ PERFORMANCE WITH IPDC (AS ON SEPTEMBER 11, 2022)
No of Approved Total Invoice Current Outstanding Overdue Max. Days
Debtor Name
Contact Limit Received Invoices Invoices OD BGP
Grameenphone Limited 14 BDT 516.00 M BDT 1,358.14 M BDT 74.48 M BDT 10.69 M 1258 Days
Banglalink Digital
12 BDT 439.00 M BDT 821.81 M BDT 68.05 M Nil N/A
Communications Ltd.
Robi Axiata Ltd. 22 BDT 664.00 M BDT 1,683.13 M BDT 208.15 M BDT 0.45 M 12 Days
bKash Ltd. 15 BDT 380.50 M BDT 1,844.41 M BDT 51.12 M BDT 6.49 M 80 Days
Dutch Bangla Bank Ltd. 04 BDT 560.00 M BDT 210.68 M BDT 16.17 M Nil N/A
Note: Grameenphone Ltd. has maximum days of OD BDT 1.47 Million with ‘Naseem Plastic Industries Limited’, which is in SAM observations.
Robi Axiata Ltd has maximum days of OD BDT 0.02 Million with ‘GPI Asia Tel.’ bKash Ltd. has maximum days of OD of BDT 7.35 million with
PKC Garments Printing Ltd.

LIABILITY INFORMATION (AS PER CIB REPORT):

(Amount in BDT)
Total Outstanding Status
Concern Name Total Overdue
Funded Non-funded Total (Oct 20, 2022)
Tech Valley Networks Limited BDT 650.81 M BDT 380.04 M BDT 1,030.85 M Nil STD

SUBMISSION:
1. Renewal of factoring of Accounts Receivables and Work Order (inner limit) along with reduction of interest rate.
2. Temporary charge vacation of First Ranking Charge of IPDC. Also, IPDC will create Hypothecation charge on fixed and floating assets
of the company within 30 days again after Temporary Vacant of RJSC First ranking charge.
PREPARED BY PROPOSED BY RECOMMENDED BY REVIEWED BY

Md. Kawsar Miah A.K Aftab Uddin Muhammad Solaiman Sarwar Umme Habiba
Financial Analyst-SCF Assistant Manager-SCF AGM & Head of SCF (Acting) In-Charge of Corporate & SME, CRM
Annexure:
1) Financial Statements
2) CRG Score Sheet
3) Outstanding Invoice as on 1st November 2022
4) SME Reporting Information
5) Sustainable Finance Indicator Summary &
6) ESDD

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Annexure 1: Financial Statements

Tech Valley Networks Ltd.
Comprehensive Income Statement
Financial Period: 30-Jun-19 30-Jun-20 30-Jun-21
(Audited) (Audited) (Audited)
Revenue 990,630,641 517,656,414 682,207,522
Less: Cost of Service 767,587,608 410,299,858 540,992,071
Gross Profit 223,043,033 107,356,556 141,215,451
Administrative Expenses 88,498,472 39,114,140 38,501,237
Selling and distribution expenses 2,424,995 2,029,648 1,967,739
Total Expenses 90,923,467 41,143,788 40,468,976
Operating Profit 132,119,566 66,212,768 100,746,475
Add: Non-Operating Income 4,768,905 7,066,513 2,658,780
Less: Financial Expenses 63,179,012 28,053,710 32,519,391
Profit Before Income Tax 73,709,459 45,225,571 70,885,864
Income Tax Expenses 26,521,942 14,611,767 19,739,102
Net Profit 47,187,517 30,613,804 51,146,762
Tech Valley Networks Ltd.
Statement of Financial Position
Financial Period: 30-Jun-19 30-Jun-20 30-Jun-21
(Audited) (Audited) (Audited)
Fixed Asset
Property, Plant, and Equipment 55,869,396 53,859,689 52,130,874
Investment 100,383,221 78,285,791 89,842,858
Total Fixed Assets 156,252,617 132,145,480 141,973,732
Current Asset
Inventories 82,929,130 94,319,435 103,146,009
Trade and other receivable 745,382,514 678,267,727 879,469,568
Advance, Deposit & Prepayment 114,075,152 141,153,637 89,416,174
Cash & Cash Equivalents 15,663,543 21,486,533 37,434,020
Total Current Assets 958,050,339 935,227,332 1,109,465,771
TOTAL ASSET 1,114,302,956 1,067,372,812 1,251,439,503
Current Liabilities
Trade and other payables 71,815,465 85,847,449 167,544,777
Dividend payable 190,000,000 190,000,000 -
Short Term Loan 592,251,517 428,364,670 309,047,275
Liability for expenses 29,149,207 20,443,495 18,689,846
Provision for tax liability 18,666,484 6,862,866 11,990,202
Total Current Liabilities 901,882,673 731,518,480 507,272,100
Long Term Liabilities 797,147 93,671,845 306,882,472
Share Money Deposit 46,000,000 46,000,000 -
Deferred tax liability 302,918 248,465 204,146
Total Long-Term Liabilities 47,100,065 139,920,310 307,086,618
Total Liabilities 948,982,738 871,438,790 814,358,718
Equity Fund
Share capital 2,000,000 2,000,000 2,000,000
Retained Earnings of the period 163,320,218 193,934,022 435,080,786
Equity 165,320,218 195,934,022 437,080,785
TOTAL LIABILITY & EQUITY 1,114,302,956 1,067,372,812 1,251,439,503
Note: Audited Financial Statements of the client for FY 2020-21 are DVC verified.

RATIO ANALYSIS
30-Jun-19 30-Jun-20 30-Jun-21
Particulars:
(Audited) (Audited) (Audited)
Revenue Growth -21.44% -47.74% 31.79%
Gross Profit Margin 22.52% 20.74% 20.70%
Operating Margin 13.34% 12.79% 14.77%
Net Profit Margin 4.76% 5.91% 7.50%
Current Ratio 1.06 1.28 2.19

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Debt-Equity Ratio 5.74 4.45 1.86

Interest Coverage Ratio 2.09 2.36 3.10

Annexure 2: CRG Score Sheet:

CRG FOR FACTORING FINANCE
SCORE
Total Obtained Score: 77 GRADING
RANGE
Risk Grade: Acceptable (ACCPT) Superior (SUP) 100
Date of CRG Preparation: 11/1/2022 Good (GD) 85-99
Borrower: Tech Valley Networks Limited (TVNL) Acceptable (ACCPT) 75-84
Group Name (if any): N/A Marginal/Watchlist (MG/WL) 65-74
Industry/Sector: Miscellaneous (Service) Special Mention (SM) 55-64
Date of Financials: 30-June-2021 (Audited) Sub Standard (SS) 45-54
Completed by: Md. Kawsar Miah Doubtful (DF) 35-44
Approved by: Head of Business Finance Bad & Loss (BL) Below 35
Assigned Actual Score
SL Parameter
Criteria Score Parameter Obtained
(A) Financial Risk (Weight 30%) 21.00
Annual Revenues Above 100.0 million 5
Above 50.00 -100.0 million 4
1 Above 20.00 -50.00 million 3 682.20 5.00
10.00 -20.00 million 2
Less than 10.00 million 1
More than 20.00% 5
More than 15% - 20% 4
Operating Profit Margin: More than 10% - 15% 3
2 14.77% 3.00
(Operating Profit/Revenues) *100 More than 5.00% - 10% 2
3.00% - 5.00% 1
Less than 3.00% 0
Liability Performance: Satisfactory Experience 5
(based on CIB, Statements etc.) No Previous Experience 3 Satisfactory
3 5.00
Previous Unsatisfactory Experience (from Experience
1
SMA)
More than 2.00x 5
Liquidity Capacity: More than 1.50x - 2.00x 3
4 2.19 5.00
(Current Assets/Current Liabilities) 1.00x - 1.50x 1
Less than 1.00x 0
Less than 0.80x 5
0.80 - 1.20x 4
Debt Equity Ratio (X) Times:
5 More than 1.20x - 1.50x 3 1.86 2.00
(Total Debt/Total Equity)
More than 1.50 - 2.00x 2
More than 2.00x 0
More than 2.50x 5
More Than 1.50x to 2.50x 4
6 Expected/Utilized Performance of Limit: 0.54 1.00
0.80x to 1.50x 2
Less Than 0.80x 1
Business & Management Risk (Weight
(B)
25%) 19.00
More than 5 Years 4
More than 2 - 5 Years 3 More than 5
1 Age of Business: 4.00
1 - 2 Years 2 Years
Less than 1 Year 1
Private Ltd./Others 4
Private
2 Legal Form of Business: Partnership 3 4.00
Ltd./Others
Proprietorship 2
More than 10 Years 3
More than 3 to 10 Years 2 More than 10
3 Sponsor/s' Related Experience: 3.00
More than 1 to 3 Years 1 Years
Up to 1 Year 0
Primary Products to Debtor/s 5 Auxiliary
4 Nature of Products/Services: Products to 3.00
3
Auxiliary Products to Debtor/s Debtor/s

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Owned by Sponsor 3
5 Business Premise Status: Family Owned & Others 2 Rented 1.00
Rented 1
Difficult 3
6 Entry & Exit Barrier: Average 2 Average 2.00
Easy 1
Favorable Seasonality Impact 3 No
7 Seasonality Impact: No Seasonality Impact 2 Seasonality 2.00
Unfavorable Seasonality Impact 1 Impact
(C) Security Risk (Weight 10%) 10.00
Assignment of Payment, SND &
5
Receivables Hypo
Assignment of
Lien Account, SND & Receivables Hypo 4
Payment,
Assignment of Payment & Receivables
1 Security Arrangement: 3 SND & 5.00
Hypo
Receivables
Lien Account & Receivables Hypo 2
Hypo
Any Above including (Tangible Collateral &
5
Others)
3rd Party PG (including Family PG & 3rd Party PG
5
Sponsor/s' PG) (including
2 Support Guarantee: Family PG & Sponsor/s' PG 4 Family PG & 5.00
Sponsor/s'
No Support Guarantee or PG 2
PG)
(D) Debtors Analytics Risk (Weight 35%) 27.00
A Grade 10
B Grade 9
1 Debtors Accumulated Classification: B Grade 9.00
C Grade 7
Z Grade 5
No Overdue 10
Nominal Overdue 7 Overdue with
2 Debtors Accumulated Overdue Status: 5.00
Overdue with Justification 5 Justification
Significant Overdue 2
More than 5 Debtors 6
02 to 05 Debtors (multi industry) 5 More than 5
3 Debtor Concentration: 6.00
02 to 05 Debtors (single industry) 4 Debtors
Single Debtor Focused 3
More than 70% 5
Debtors' Contribution in Proposed Less than
4 50% to 70% 4 3.00
Business: 50%
Less than 50% 3
More than 3 years 4
1 to 3 years 3 More than 3
5 Relationship with Prime Debtor: 4.00
Less than 1 year 2 years
Less than 6 months 1
Total Obtained Score: 77

Annexure 3: Outstanding Invoice as on 1st November 2022

(Amount in BDT)
DEBTOR NAME INVOICE ID INVOICE NUMBER INVOICE DATE MATURITY DATE NET INVOICE AMOUNT
Grameenphone Limited INVC222402255P 221235 24-Aug-22 22-Nov-22 15,115,341.15

Annexure 4: SME Reporting Information:

Fixed Asset
Sector Human Resources Category
Customer Category (Excluding Land & Building)
Miscellaneous BDT 12.24 M 192 Persons Large

Sector Specification:
Company Ownership Existing / New
Sub-Sector Area Refinance Sector
Category Type Finance

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Service Large Male Urban Existing May be Miscellaneous

Bank/NBFI Director Information:

Designation at Designation at TIN No
Director Name Bank/NBFI Name Company Type
Company Bank/NBFI (Individual)
N/A N/A N/A N/A N/A N/A

General Environmental Due-Diligence Checklist:

Environmental clearances:
Environmental Category of the Proposed EnvRR- (High, ESDD Sector Specific
Department of Environment
Facility (Under ECR-1997) Moderate, Low) Check List ESDD Check List
(DOE)

N/A N/A Low Yes N/A

Annexure: 05: Sustainable Finance Indicator Summary

Client Tech Valley Networks Limited (TVNL)

Amount BDT 95.00 Million & BDT 50.00 Million
Facility Type Factoring of Accounts Receivables (with recourse) & Work Order (Inner)
Type of Sustainable Finance Eligible? Category
Green Finance No
Sustainable Agriculture No
Sustainable Linked Finance Sustainable CMSME No
Socially Responsible Finance No
Other Sustainable Linked Finance No
Investment in Green Bond/Green SUKUK No
Green Investment
Investment in Impact Fund No
Sustainable Finance? N/A

Annexure: 06: ESDD Checklist

Basic Information
Bank/FI Name IPDC FINANCE
Branch Name HO
Date Tuesday, October 18, 2022
Name of Client/Account TECH VALLEY NETWORKS LIMITED
Transaction ID N/A
Location
Division DHAKA
District DHAKA
Upazilla/Thana TEJGAON
Sector Generic ESDD
Insert Sector Name for Generic ESDD IT Service
CIB Sector code 908400
Product Manufactured/Traded IT SERVICE
Core Market LOCAL
Name of Relationship Official A K AFTAB UDDIN
DOE Categorization GREEN
Transaction Type as Table 1 of Guidelines Transaction Type-11 of ESRM Guideline
Risk Rating of the Project Low Risk
General Risks 91
Environmental health and safety risks 78
Social risks 87
Final Score 85

Prepared by: Reviewed by:

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A. K. Aftab Uddin Umme Habiba

Assistant Manager In-Charge of Corporate & SME, CRM

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