Followings are the financials of a borrower approached to you for rating of working capital...

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Finance

  1. Followings are the financials of a borrower approached to you for rating of working capital financing :

Rs in lacs

Year 1

Year 2

Year 3

Year 4

Audited

Audited

Estimate

Projection

Sales

300

400

600

800

EBITDA margin

13%

17%

19%

22%

NPM margin

6%

8%

10%

12%

TOL

300

400

500

600

TNW

200

250

300

380

ATNW

200

210

200

180

Current Asset

400

500

600

750

Current Liability

270

350

450

520

Based on the above financial information , please carry out the financial rating of the facilities after carrying out the necessary adjustments to factors arising out of reduced information asymmetry, increased transparency of government of India and reduced business margin due to change in business model .

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