CREDITWORTHINESS RATING REPORT · Indicators Source: FIA and APIF 2015 2016 2017 Participation rate...

Part of the BISNODE group, Stockholm, Sweden

Društvo sa ograničenom odgovornošću " POLIGARDEN"Donje Crnjelovo

Published 10/15/2018

CREDITWORTHINESS RATINGREPORTPublisher: Bisnode BH d.o.o.

© CREDITWORTHINESS RATING REPORT. All rights reserved.Web: bisnode.ba/aaa, tel: +387 33 215454

Table of contents

01. What is creditworthiness rating?

02. Registration data

03. Balance sheet

04. Income statement

05. Indicators

06. Graphic analysis

07. Methodology

08. Statistics

09. About Bisnode

10. Certificate

© CREDITWORTHINESS RATING REPORT. All rights reserved. Web: www.bisnode.ba/aaa, tel: 00387 33 215454

What is creditworthiness rating?

Creditworthiness rating is above-average rating value of entities - economic operators. It is based on theentities' financial statements for the last business year and forecasts the safety of operations in the nexttwelve months.

Companies with excellent solvency operate above average and it is less likely that their transactionaccount will be frozen next year. To get excellent solvency rating a company must meet the followingquality standards:

have at least three employeecompany should be active for at least seven yearscapital of at least 100.000 BAMnet profit margin of at least 3%operating revenues of at least 700.000 BAMprobability of a negative event less than 3,12% (insolvency, cancelation or blocked bank account)

There is a 82% probability that entities with AAA creditworthinessrating will maintain the creditworthiness rating also in the nextyear.

Certification has become an established practice in the international environment and a method forentities to further consolidate their reputation and trust in domestic and foreign business environment.The holders of a certificate thus gain additional trust of their business partners.

The Bisnode Group has a long-term tradition in granting certificates of rating excellence in the following12 European countries: Sweden, Norway, Finland, Denmark, Germany, Slovenia, Croatia, Serbia, Bosniaand Herzegovina, Poland, Czech Republic and Hungary. In the next years, certification will be carried outat the level of the entire group of 18 European countries in which Bisnode operates.


1

Registration data

Company name: Društvo sa ograničenom odgovornošću " POLIGARDEN" DonjeCrnjelovo

Address: Donje Crnjelovo bb, 76300 BIJELJINA

Activity: C 31.09 MANUFACTURE OF OTHER FURNITURE

Legal status: DRUŠTVO SA OGRANIČENOM ODGOVORNOŠĆU

Tax no.: 4402019980001

Date of entry: 12/27/2004

Size: Small

Region: Mezoregion Bijeljina


2

Balance sheet

Source: FIA and APIF

Data in 1000 BAM 2015 2016 2017

ASSETS

Fixed assets 84,055 74,570 175,649

Current assets 106,845 126,953 97,834

Supplies 23,242 64,270 36,816

Claims 53,419 17,482 22,472

Cash and cash equivalents 30,007 44,965 35,918

LIABILITIES

Capital 172,409 144,121 247,164

Long-term provisions 0 0 0

Long-term liabilities 0 0 0

Short-term liabilities 18,491 57,402 26,319

Liabilities 190,900 201,523 273,483

The average number of employees 9 15 18


3

Income Statement


Data in 1000 BAM 2015 2016 2017

Revenues from sales 0 708,417 853,584

Cost of goods, materials and services 226,553 332,798 378,776

Wages, salaries and other employee expenses 75,472 114,082 142,260

Write-offs 13,352 14,100 13,537

Operating profit (EBIT) 28,855 133,935 201,963

Operating profit (EBITDA) 29,565 93,073 202,112

Financial revenues 1,476 0 0

Financial expenses 47 61 39

Total revenues 433,598 707,553 856,216

Total expenditures 404,033 614,480 654,104

Net profit 26,562 81,712 183,043


4

Indicators


2015 2016 2017

Participation rate of capital 0.90 0.72 0.90

Current ratio 5.78 2.21 3.72

Debt service 0.10 0.16 0.30

Credit exposure from operations 0.12 0.02 0.03

Current assets turnover 4.06 5.57 8.75

Operating margin 28,855.00 133,935.00 201,963.00

Net return on assets 0.14 0.41 0.67

Net return on equity 0.15 0.57 0.74

Net profit margin 0.06 0.12 0.21

Share of fixed assets in assets N/A N/A N/A

Share of current assets in assets 0.56 0.63 0.36


5

Graphic analysis

Participation rate of liabilities

The participation rate of liabilities tells us the amount of assets financed by foreign capital. The higher theratio, the better the company uses foreign sources for its financing (current and non-current liabilities).As a rule, foreign financing is cheaper than financing from own resources.

Calculation ratios


6

Liquidity ratio

The liquidity ratio tells us the the coverage of current liabilities by current assets. The higher the value ofthe ratio, the easier it is for the company to settle its current liabilities. Liquidity is the company’s ability tohave at its disposal, within a short period of time, adequate liquid assets for timely payment of dueliabilities.

Calculation ratios


7

Assets turnover ratio

The ratio measures the share of total revenues in assets and tells us the amount of total revenuesgenerated by the company with the available assets. The higher the value of the ratio, the better theperformance of the company and the shorter its turnover. The shorter the turnover, the better theliquidity of the company and the smaller the probability that it would experience liquidity problems. Ashorter turnover means that assets require less time to be converted from non-liquid to liquid state.

Calculation ratios


8

Methodology

The methodology for assessing creditworthiness rating is based on a combination of qualitative standardsand statistical model. The analysis includes subjects with at least two employees, total revenues of at least100.000 BAM and a positive equity. Statistical model estimates the probability of negative event (bankaccount blockage, insolvency or cancelation) of the entity in the next year and a basis for assessing thecreditworthiness rating. Final rating takes into account additional qualitative standards that are set foreach rating level of creditworthiness.

The statistics of entity blockades in relation to a specific financial ratio represent a basis for preparing astatistical model.


Sh

are

of

po

pu

lati

on

(in

%)


BlockedShare of population

to 0.35 to 0.81 to 1.33 to 2.23 over 2.230

10

20

30

40

50


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Liquidity ratio

Sh

are

of

po

pu

lati

on

(in

%)

Liquidity ratio


N/A to 0.8 to 1.13 to 1.61 to 3 over 30

5

10

15

20

25

30

35

Profit margi

Sh

are

of

po

pu

lati

on

(in

%)

Profit margin


to 0 to 0.01 to 0.03 to 0.08 over 0.080

10

20

30

40


10

Statistics

Comparison of the distribution of subjects with a creditworthiness rating and the population of entitiesthat meet the criteria of at least two employees, at least 100.000 BAM revenue and positive equity.

Comparison of size distribution of income shows that the AAA credit rating is dominated by companieswith higher total revenues:

Distribution of the number of employees featured in the AAA creditworthiness rating is dominated byoperators with a large number of employees

Income amount in Millions BAM

Sh

are

of

po

pu

lati

on

(in

%)

Comparison of distribution based on the income amount

PopulationAAA

to 6 to 10 to 13 to 14 over 140

10

20

30

40

50

60

70

80

90

100

Number of employees

Sh

are

of

po

pu

lati

on

(in

%)

Distribution by number of employees

PopulationAAA

to 2 to 3 to 9 to 42 over 420

10

20

30

40

50

60

70

80

90

100


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Entities that have greater return on assets prevail in the AAA creditworthiness rating:

Funds profitability

Sh

are

of

po

pu

lati

on

(in

%)

Distribution by return on assets (ROA)

PopulationAAA

to 62037 to 192344 to 879269 to 5010302 over 9810254870

10

20

30

40

50

60

70

80

90

100


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About Bisnode

Bisnode is a leading European company that provides business information and conducts data analysis. Itoperates in 19 countries and is also a strategic partner of the largest global provider of businessinformation, Dun & Bradstreet.

Bisnode Southern Market includes the subsidiaries in the countries of the former Yugoslavia: Slovenia,Croatia, Serbia, Bosnia and Herzegovina, and Macedonia.

Bisnode helps companies improve their operations and management of relationships with clientsthroughout the entire life cycle by utilising smart data. This is achieved by combining our data, the dataof our clients, and the ubiquitous big data to create smart data.


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CREDITWORTHINESS RATING REPORT · Indicators Source: FIA and APIF 2015 2016 2017 Participation rate...

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