TABLE OF CONTENTS

I. Description of the loan

II. Credit history 

III. Description of the company 

IV. Analysis of the market 

Analysis of Company's competitors

Analysis of Company's suppliers

Analysis of Company's customers

V. Financial Analysis of the 17217l1123r borrower

1. Evolution of the Turnover

2. Ratio analysis

Liquidity ratios

Solvency ratios

Profitability ratios

VI. SWOT ANALYSIS 

VII. Risk Evaluation 

VIII. Credit Scoring 

IX. Credit commission decision 

I. Description of the loan

CONFORT SA applied to BRD Targoviste for an investment credit of the equivalent of 10000 EUR in ROL on a one year period. The purpose is to purchase a new concrete mixer.

The credit will be guaranteed with 1^st rank mortgage on building and land, situated in Targoviste. The asset is owned by the company, representing the headquarters.

The reimbursement of the loan will be made monthly in equal installments.

II. Credit history

Confort SA had no previous relationship with BRD bank.

The banks the company works with are:

• BCR Targoviste branch
• Reiffeisen bank

Confort SA didn't encounter problems in paying back its debts.

III. Description of the company

SC Confort SA is a limited liability company on shares with private capital. It was founded in 1991 and it has the headquarters in Targoviste, Decebal Streer, no.14A.

The main activities of the company are:

. civil and industrial constructions

. consolidations and capital repairs

. external networks of water pipes

. constructions of roads

. sales of construction materials

A powerful and experienced team of professionals constitutes the management of the company. SC CONFORT SA has about 300 employees with high technical knowledge certified by their studies and trainings.

IV. Analysis of the market

Civil construction market registered an incredible evolution during the last years. The trend is considered to continue at least 5 more years.

The market just reached the boom period.  In the first semester of 2006 compared to the same period of 2005, the percentage increase was of 23.3%.
In Romania, this sector is considered to be the most dynamic in the last 10 years.

The turnover of Confort SA increased in 2006 with 40% compared to 2005.Therefore the growth of the company has a rhythm almost double compared to the market.

Analysis of Company's competitors

The most important competitors of CONFORT SA in the civil constructions are the following:

SC Arco Construct

Axa

Ibiza Construct 2000

Domus Stil

Trend Imobiliar

Asco Constructii

Triumf Construct

Arcom

Analysis of Company's suppliers

The most important suppliers of raw materials for CONFORT SA are the following:

Trust Iuscu

TBG Group

Holcim SA

Ductil Steel SA

Wienerberger SA

With all of the above mentioned, Confort SA has long term contracts. The business relationships with some of them last for more than 15 years.

Analysis of Company's customers

Confort S.A. company has as customers both natural and legal persons, institutions, organizations, City houses, ANL (National Association of Housing)

With some, the company signed long term contracts.

One of the most representative projects executed by CONFORT company are:

• S.C. CONFORT S.A. Targoviste headquarters;
• D.S.V Targoviste headquarters;
• D.G.M.P.S Targoviste headquarters and many others

V. Financial Analysis of the borrower

1. Evolution of the Turnover

As is can be seen from the income statement, revenues from sold production represent the largest percentage in the total revenues. Revenues from sold production refer to sales of finished goods, construction works and services for third parties. The increase in these revenues determines a substantial growth in the turnover.

2. Ratio analysis

Liquidity ratios

Current ratio

SC CONFORT SA performs efficient activities and is able to repay its short-term loans by its current assets. Therefore, the current ratio has high values. This is due to the fact that the company is investing a lot in its current assets and does not undertake short-term credits.

A value over 100% represents a very good liquidity ratio.

Quick ratio

The quick ratio expresses a company's ability to repay short-term creditors out of its most liquid assets. The quick ratio is the result of dividing the total of current assets, other than inventories, by short-term borrowings. It shows the number of times short-term liabilities are covered by quick assets. The high values of the quick ratio recorded by the company highlight that the company does not keep a lot of inventories and that its accounts receivable cover most of the current liabilities.

Quick ratio is viewed as a sign of company's financial strength or weakness, a higher number means a stronger company. The value obtained is a good one.

Working capital

A positive working capital means that the company is able to pay off its short-term liabilities. The increase in the value of the working capital is determined by the reinvestment of the previous period's profit into current assets. This is done in order to improve the operating activities of the company.

Solvency ratios

Solvency ratio

As it can be seen for the evolution and values of the solvency ratio, SC CONFORT SA is capable of paying its current and long-term liabilities toward third parties - as its total assets value is about 3 times higher than the amount of total liabilities. This stands as prove of the efficiency of the company's efficiency in conducting its activity.

The higher the value of this ratio, a more positive effect for the company will be expressed. It represents the efficiency of conducting the activity.

Interest coverage

SC CONFORT SA is more than capable of covering its payments with interest from its operating profit. This is due to two factors. First of all, the company has only a few loans, which makes the interest expense very small. Second of all, the recorded operating values are high and have an increasing trend.

The minimum requested in general by the bank is 3. A value over 4 is evaluated as very good.

Equity ratio

The equity ratio for merchants over 16% is evaluated as very good.

Leverage ratio (debt to equity ratio)

The leverage ratio highlights the degree of capital participation and risks to which the owners of the company have exposed themselves to. The small values of this ratio show that the company has undertaken small risks and it is trustworthy from an investors point of view.

A value under 100% is considered favorable from the bank's point of view.

Profitability ratios

Total assets turnover

This ratio reflects the efficiency of the company in using its assets.

Equity turnover

It measures how well a company uses its stockholders' equity to generate revenue. The higher the ratio is, the more efficiently a company is using its capital.

Gross profit margin

A higher gross profit margin represent a more efficient company.

Operating profit margin

Over 10% is evaluated as being a very good ratio.

ROA

This ratio indicates how profitable a company is relative to its total assets.

ROE

This ratio is a measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

3. Assets evolution

The assets section of the company had a constant increase of 15 %, due to the increase in current assets.

4. Equity and liability evolution

The liability section had also a constant increase of 15% due to the increase in current liabilities. No relevant modifications occurred in the equity section.

VI. SWOT ANALYSIS

Strengths

-Initiating new large projects in the construction area

- Management experience and team of professionals

- More than 80 % of the employees are qualified workers.

- IQ net and SRAC ISO 9001:2000 Certificate

- long term contracts with suppliers and customers

Weaknesses

high cost structure

Opportunities

the dynamism of the construction sector

the increasing demand on the market

Threats

the increasing competition

the subventions granted by ANL

VII. Risk Evaluation

VIII. Credit Scoring

Rating A - performing credit.

IX. Credit commission decision

The credit commission approved the investment credit in the following conditions: