M/S Kashem Masla & Lachi Samai Methodology should cover analysis of following risks parameters (Score 100)

Company Financial Maximum Score Data 2012 A. Financial Risk: Capital Structure (Total: 08 Points) 1 Leverage(Less than 0.25 - More than 2.75 times) Liquidity Ratio (Total : 15 Points) 2 Current Ratio (Greater than 2.74 - Less than 0.70 times) 3 Cash Conversion Cycle (CCC) 4 5 6 7 8 Cash Ratio 93.63 Gross PM (Greater than 25% - Less than 1%) Net PM % ROA % ROE % 50.00 0.40 1.82 102.1 0.0100 17.40% 8.91% 16.64% 24.46% 8.00 5.00 5.00 5.00 4.00 4.00 3.00 3.00 Weight of Quantitative Score (75%) 22.46 5.96 2.06 1.88 1.13 2.06 1.88 2.25 2.25 Quantitative Score Achieved Weight of Qualitative Score (25%) 9.94 1.75 0.75 0.63 0.50 0.75 0.75 0.63 0.63 Qualitative Score Achieved Reasoning Total Score achieved Rating Long Term Rating Weighted Score

29.94 7.95 2.75 2.50 1.50 2.74 2.50 3.00 3.00

33.00 7.00 3.00 2.50 2.00 3.00 3.00 2.50 2.50 increased from 2010

32.39 7.71 2.81 2.50 1.63 2.81 2.63 2.88 2.88

decreased. But needs to decrease more.

AAA AA + AA AAA+ A ABBB+ BBB BBBBB+ BB BBB+ B BC D

91 88 84 81 78 74 71 68 64 61 58 54 51

100 90 87 83 80 77 73 70 67 63 60 57 53 50 47 43 40

Cashflow Coverage Ratio (Total: 07 Points) 9 Interest Coverage ratio (More than 5.00 - Less than 1.00 times) 10 Debt Coverage ratio (More than 2.00 - Less than 1.00 times) 0.62 11 Books of accounts are maintained 12 Audited by Quality Audit firm 13 Management reports are prepared B. Business / Industry Risk: Competitive Industry Position (Total: 11 Points) 14 Size of Business (>60.00 Tk. cr. -< 2.50Tk. cr.last years sale) 15 Age of Business(>10years-<2 years) 16 Business Outlook (Favorable - Cause for Concern) Industry Outlook (Total: 12 Points) 17 Industry Growth (10% + -<1%) 18 Competition (Dominant Player - Competitive) 19 Entry / Exit Barriers to Business (Difficult-Easy) Operating Risk (Total: 07 Points) 20 Risk Management 21 Foreign Exchange Risk Mangement (Hedging - If Any) C. Management Risk: 22 Experience (More than 10 years in there lated line of business - No experience) 23 Succession(Noexperience- Succession in question)& 24 Team Work (Very Good-Regular Conflict) 25 Corporate Governance 26 IT Environment and Technological Advancement D. Security Risk: 27 Security Coverage (Capable for fully pledged/cashcover/Reg. Mortgage - Not capable to provide security) 28 Collateral coverage (Capable for Registered Mortgage on Municipal corporation/Prime area property - Not capable for providing such collateral) 29 Support/Guarantee (Capable Personal guarantee with high net worth or Strong Corporate Guarantee - Not capable for Support/Guarantee 30 Legal Intervention (If Any) 31 Proper Documentation and Papers E. Bank Relationship Risk: 32 Bank Account Conduct (Maintain More than 3 (three) years accounts with faultless record Account(s) says Frequent Past dues & Irregular dealings) 33 Utilization of Loan Limit - If any (More than 60% - Less than 40%) 34 Compliance of covenants/conditions - lf any (Full Compliance - No Compliance)& 35 Personal Deposit (Personal accounts of the key business Sponsors/Principals are maintained in bank(s), with significant deposits - No depository relationship)

Decreasing trend Decreasing trend Improved from previous 2 years Improved from previous 2 years

5.5 0.43 Moderate Nil Moderate

4.00 3.00 2.00 2.00 2.00 30.00 3.00 3.00 5.00 4.00 4.00 4.00 4.00 3.00 10.00 2.00 2.00 1.00 2.00 3.00 5.00 1.00 1.00 1.00 1.00 1.00 5.00 1.00 1.00 2.00 1.00 100.00

3.00 0.00

4.00 0.00

0.94 0.38 1.00 0.25 1.00 9.25 0.50 0.75 1.00 0.63 0.75 0.63 3.00 2.00 1.50 0.50 0.38 0.06 0.06 0.50 5.00 1.00 1.00 1.00 1.00 1.00 1.25 0.25 0.25 0.50 0.25 26.94

3.75 1.50 1.00 0.25 1.00 17.00 2.00 3.00 4.00 2.50 3.00 2.50 3.00 2.00 6.00 2.00 1.50 0.25 0.25 2.00 5.00 1.00 1.00 1.00 1.00 1.00 5.00 1.00 1.00 2.00 1.00 66.00

3.94 0.38 1.00 0.25 1.00 22.41 1.28 3.00 4.38 2.88 3.75 2.13 3.00 2.00 6.38 2.00 1.88 0.44 0.44 1.63 5.00 1.00 1.00 1.00 1.00 1.00 5.00 1.00 1.00 2.00 1.00 71.17

48 44 41 38 & Not Classified (< 38) Short Term Rating Weighted Score 81 71 61 51 41 38 & less -

13.16 0.78 2.25 3.38 2.25 3.00 1.50

17.54 1.04 3.00 4.50 3.00 4.00 2.00

Rating AR - 1 AR - 2 AR - 3 AR - 4 AR - 5 AR - 6

22.4 More than 10 years Moderate Moderate Competitive Low Moderate Moderate More than 10 years Successful Low Low Low Capable Capable Capable None Moderate Good Capable Compliant Moderate

100 80 70 60 50 40

4.88 1.50 1.50 0.38 0.38 1.13 0.00

6.50 2.00 2.00 0.50 0.50 1.50 0.00

3.75 0.75 0.75 1.50 0.75 44.24

5.00 1.00 1.00 2.00 1.00 58.98

Long Term Short Term -

AAR - 3

Edit the blue cells only (Put numbers only in blue cells)

Assign Rating for Long Term

A-