Bank Lending

Topics: Balance sheet, Risk, Risk management Pages: 8 (969 words) Published: March 12, 2013
Credit Appraisal for:

GRILL ‘N’ CHILL PVT (LTD)

Prepared By: Mandivei Ashly
Check By: T Mutambanadzo

BORROWER

KYC COMPLIANCE : this is a new relationship with the client

OWNERSHIP : Moyo Sarah 80% and Moyo Lingiwe 20%

DIRECTORS : S Moyo and L Moyo.

GENERAL INFORMATION

Date of establishment:1 December 2012
Relationship since: n/a
Company last visited:15 November 2012

NATURE OF BUSINESS & SECTOR

. food and beverage business in the retail sector

FACILITY REQUIRED

Nature: capital and working capital expenditure loan.

Amount: $15000

Expiry: 2 years

PRUDENTIAL LENDING LIMITS
The loan of $15 000 is within the bank’s prudential lending limits as it is far below the below the bank’s prudential limit of 25% of $100 million which is $25 million.

CURRENT FACILITIES

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I. FORECAST REVENUE

|  | |Tenure | Forecast Utilisation |Revenue | | |  | | | | | | | | | | | | | | | | |Total | | | | |

.

II. SECURITY

Surety bond for of $25000 on a residential property House no 2140 makwasha township zvishavane

JUSTIFICATION FOR THIS FACILITY

Given the client’s cashflows they will be able to meet the repayments of the facility in one year successfully.

III. ADDITIONAL/ SPECIAL COMMENTS

1. BACKGROUND

2. COMMENT ON FACILITIES IN EXISTENCE

n/a

3. RISK ANALYSIS

1. FINANCIAL RISK

Financial Statements Dated: 1 December 2012 to 31 December 2014

Auditors: n/a

Auditors’ Standing: n/a

Auditors’ Opinion: n/a

3.1.1 Income Statement for the period ended 31 December 2014

| | | | | % Change | | |$ |$ |$ | | |Sales |144 464.00 |158 910.40 |14 446.4 |10 | |Cost of sales |72 277.50 |79 505.25 |7 227.75 |10 | |Gross Profit |72 186.50 |79 405.15 |7 218.65 |10 | |Gross Profit % |49.97 |49.97 |0 | | |Operating expenses |44 049.96 |26 439 |(17 610.96) |(39.98) | |Depreciation |137.50 |134.06 |(3.44) |2.5 | |Other income (net) | | | | | |PBIT |27 999.04 |52 832.09 |24 833.05 |88.69 | |Operating margin |19.38% |33.25% |13.87 |71.57 | |Net interest charges |4500 | | | | |PBT |23 499.04 |52 832.09...
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