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CREDIT RATING REPORT On M/S. MUNSHI FILLING STATION AND CNG · M/S. Munshi Filling Station and CNG, ... the Short Term to M/S Munshi Filling Station and CNG (MFS) based on its financials

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Page 1: CREDIT RATING REPORT On M/S. MUNSHI FILLING STATION AND CNG · M/S. Munshi Filling Station and CNG, ... the Short Term to M/S Munshi Filling Station and CNG (MFS) based on its financials

CREDIT RATING REPORT On

M/S. MUNSHI FILLING STATION AND CNG

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Address: CRISL Nakshi Homes (4th & 5th Floor) 6/1A, Segunbagicha, Dhaka-1000 Tel: 9515807-8 9514767-8 Fax: 88-02-9565783 Email: [email protected] Analysts: Md. Asiful Huq [email protected] Moin Uddin Ahmed [email protected] Entity Rating Long Term: BBB Short Term: ST-3 Outlook: Stable

M/S. MUNSHI FILLING STATION

AND CNG ACTIVITY Octane, petrol and diesel trading DATE OF INCORPORATION August 1, 2011 PROPRIETOR Mr. Atikur Rahman Nannu Munsi TOTAL ASSETS Tk.62.00 million NET WORTH Tk.46.77 million Sole Proprietorship

Date of Rating 18/06/12 Long Term Short Term Entity Rating BBB ST-3 Outlook Stable Bank Facilities Rating Bank/FI Mode of Exposures (Figures in million) Ratings

Term loan outstanding of Tk. 2.96 million blr BBB EXIM Bank Working Capital Limit of Tk. 20.00 million blr BBB

1.0 RATIONALE CRISL has assigned ‘BBB’ (pronounced as triple B) rating in the Long Term and ‘ST-3’ rating in the Short Term to M/S Munshi Filling Station and CNG (MFS) based on its financials and other relevant quantitative and qualitative information up to the date of rating. The above ratings have been assigned after due consideration to its fundamentals such as good net worth of the entrepreneur, suitable location of business, regular repayment history, high inventory turnover, cash transaction etc. However, the above factors were constrained, to some extent, by weak legal status, price fixation by government, less experienced management, unstructured accounting record keeping, exposure to fire risk etc. The Long Term rating implies that Entities rated in this category are adjudged to offer moderate degree of safety for timely repayment of financial obligations. This level of rating indicates that a company is under-performing in some areas. Risk factors are more variable in periods of economic stress than those rated in the higher categories. These entities are however considered to have the capability to overcome the above-mentioned limitations. The Short Term rating indicates good certainty of timely payment. Liquidity factors and company fundamentals are sound. Although ongoing funding needs may enlarge total financing requirements, access to financial markets is good with small risk factors. CRISL also placed the entity under “Stable Outlook” believing that the concern will be able to maintain existing fundamentals in the foreseeable future. 2.0 ENTERPRISE PROFILE 2.1 The Genesis M/S. Munshi Filling Station and CNG, one of the largest filling stations in Narayangonj, started its operation on August 1, 2011 as a sole proprietorship business. Mr. Atikur Rahman Nannu Munsi, a reputed business personality in Narayangonj, is the proprietor of the business concern. He started as a carrying contractor, and then bought 1 petrol pump in Meghnaghat, which he sold later on. Currently, he is the owner of 5 petrol pumps. In addition to that, the owner also has 16 oil tankers to carry oil and petroleum products. Along with being an agent of Padda Oil Company Limited, he is the President of Tank Lorry Owners Unit, Godnail Padda Branch, Siddirgonj, Narayangonj. He is also the Chairman of Bonoyan Abason Limited. He owns significant amount of land in different areas of rural and suburban Narayangonj. The Station is situated on 50 decimal land having capacity of 2 diesel tanks of 42,000 liters, one octane tank of 1600 liters, and one petrol tank of 16000 liters. The enterprise procures Diesel, Octane, Mobil and Petrol from Padda Oil Company Limited and sells the same to buses, trucks, private cars, and other vehicles owners. The Head Office of the enterprise is located at Dogair, Notun Purbo para, Sarulia, Demra, Dhaka and the filling station Amlabo, Golakandail, Rupganj, Narayanganj.

REPORT: RR/1536/12

This is a credit rating report as per the provisions of the Credit Rating Companies Rules 1996. CRISL’s entity rating is valid one year for long-term rating and 6 months for short term rating. CRISL’s Bank loan rating (blr) is valid one year for long term facilities and up-to 365 days (according to tenure of short term facilities) for short term facilities. After the above periods, these ratings will not carry any validity unless the entity goes for surveillance. CRISL followed Corporate Rating Methodology published in CRISL website www.crislbd.com