Internal Credit Risk Rating System

(Detail Report)
File / Reference No: 10000/100/10/1
British American Assessment Criteria:
Borrower Name
Tobacco Bangladesh Greater than or equal to 80%= Excellent; 70%-80% = Good;
Group Name (if any) BAT 60% to 70% = Marginal; Less than 60% = Unacceptable
Industry Name 14. Other Industries

Latest CIB Status Standard Indicators Score Obtained Risk Rating

Audit Status Audited 50

Quantitative Excellent
Auditor Name KPMG 83.3%
Analyst Name, Designations Sadia Hossain 36.75
Qualitative Excellent
91.9%
Verifier Name, Designation YL
86.75
Aggregate Excellent
Date of Analysis 20/10/2023 86.8%
Date of Financials 31-12-2022

Score
Outcome Scale Percentage Risk Rating
Obtained
Quantitative Assessments 50 60 83.3% Excellent
A Leverage 10.00 10.00 100.0% Excellent
1. Financial Debt to Tangible
A.1 0.21 7.00 7 100.0% Excellent
Net Worth (DTN)
2. Financial Debt to Total Assets
B.2 0.10 3.00 3 100.0% Excellent
(DTA)
B Liquidity 7 10 70.0% Good
B.1 1. Current Ratio (CR) 1.35 6.00 7 85.7% Excellent
B.2 2. Cash Ratio (Cash) 0.04 1.00 3 33.3% Unacceptable
C Profitability 10 10 100.0% Excellent
C.1 1. Net Profit Margin (NPM) 0.20 5.00 5 100.0% Excellent
C.2 2. Return on Assets (ROA) 0.20 3.00 3 100.0% Excellent
3. Operating Profit to Operating
C.3 0.41 2.00 2 100.0% Excellent
Assets (OPOA)
D Coverage 15 15 100.0% Excellent
D.1 1. Interest Coverage (IC) 3023601.40 3.00 3 100.0% Excellent
2. Debt Service Coverage Ratio
D.2 80.76 5.00 5 100.0% Excellent
(DSCR)
3. Operating Cashflow to Debt
D.3 1.02 4.00 4 100.0% Excellent
Ratio (CDR)
4. Cashflow Coverage Ratio
D.4 21.24 3.00 3 100.0% Excellent
(CCR)
E Operational Efficiency 5 10 50.0% Unacceptable
E.1 1. Stock Turnover Days (STD) 356.42 0.00 4 0.0% Unacceptable
2. Trade Debtor Collection Days
E.2 13.32 3.00 3 100.0% Excellent
(TDCD)
E.3 3. Asset Turnover (AT) 0.96 2.00 3 66.7% Marginal
F Earning Quality 3.00 5 60.0% Marginal
1. Operating Cash Flow to Sales
F.1 0.11 3.00 3 100.0% Excellent
(CFS)
2. Cashflow based accrual ratio
F.2 0.29 0.00 2 0.0% Unacceptable
(CAR)
Qualitative Assessments 36.75 40 91.9% Excellent
G Performance Behavior 10 10 100.0% Excellent
 Internal Credit Risk Rating System
(Detail Report)
How many times the borrower
G.1.1 was adversely classified in last 3 O time 5.00 5 100.0% Excellent
years

How many times the borrower's

G.1.2 loans was rescheduled/ 0 time 4.00 4 100.0% Excellent
restructured in last 3 years

Did The Borrower Pay Its

G.2 Suppliers/ Creditors Regularly Yes 1.00 1 100.0% Excellent
In Last 1 Year
H Business and Industry Risk 6.75 7 96.4% Excellent
H.1 Sales Growth >10% 2.00 2 100.0% Excellent
H.2 Age of Business >10 years 2.00 2 100.0% Excellent
H.3 Industry Prospects Stable 0.75 1 75.0% Good
Long-Term External Credit
H.4 1.00 2.00 2 100.0% Excellent
Rating of the Borrower
I Management Risk 7 7 100.0% Excellent
More than 10 years in the
I.1 Experience of the Management 2.00 2 100.0% Excellent
related line of business

Yes, with good capability

I.2 Existence of Succession Plan 2.00 2 100.0% Excellent
of successor
I.3 Auditing Firms Recognized Auditors 2.00 2 100.0% Excellent
Change in Auditors in last 3
I.4 Yes 1.00 1 100.0% Excellent
years
J Security Risk 8 11 72.7% Good
Registered Hypothecation
J.1 Primary Security (1st Charge/1st Pari Passu 1.50 2 75.0% Good
Charge)

Registered Mortgage On
Municipal
J.2 Collateral 2.00 2 100.0% Excellent
Corporation/Prime Area
Property

J.3 Collataral Coverage 70% to 80% 3.00 5 60.0% Marginal

Strong Corporate
J.4 Guarantee 1.50 2 75.0% Good
Guarantee

K Guarantee 3.00 3 100.0% Excellent

More than 3 years
K.1 Account Conduct Accounts with Faultless 3.00 3 100.0% Excellent
Record

L Compliance Risk 2.00 2 100.0% Excellent

Compliance with environmental
L.1 Yes 1.00 1 100.0% Excellent
rules, regulations and covenants
Corporate Governance and CSR Good Corporate
L.2 1.00 1 100.0% Excellent
activities Governance