Audit and economical analysis

Table 144

Assessment of enterprises' creditworthiness

Methodological approach	Shared Documents	Important
From enterprise point of view	1-NAS, "Accounting Policies and Financial Reporting"	Ability to cover liabilities
From the perspective of the bank	Procedure for Loan and Equivalent Transactions (Credit Policy)	Creditworthiness

 

The analysis of credit solvency of enterprises and assessment of the main legal document regulating the Ministry of Finance of the Republic of Uzbekistan 17-17 / 86 dated July 26, 1998 approved by the Ministry of Justice (14.08.1998 No. Ehold registered) 1 "Accounting Policies and Financial Reporting" is the NAS.

The methodology of credit lending and the procedure of crediting (credit policy) , developed by each commercial bank, will serve as a methodological basis for the enterprise's creditworthiness.

The method of crediting and balancing operations (credit policy) is a methodology for studying the creditworthiness of enterprises as a method of calculating the credit repayment capacity of businesses and a system of risk assessment.

The procedure for crediting and balancing operations of each bank has been developed, according to which the methodology of calculating the credit repayment capacity of economic entities and risk assessment system (Scoring Analysis System) . The creditworthiness of business entities in the methodology of calculating the credit repayment capability and the risk assessment system - the financial status of subjects, the timely and complete replacement of their loans.              

 The creditworthiness of business entities is characterized by a number of indicators. Limited number of indicators, and each served by a commercial bank customers caused by the activity of specific IB is determined.

This methodology includes indicators of creditworthiness: indicators for loan repayment, liquidity and equity (independence ratio), as well as dynamics of turnover of assets, unpaid debts, profitability and turnover of circulating assets.

The main creditworthiness indicators are the following coefficients:

Coverage, liquidity and equity (sovereignty).

Liquidity indicators are used to estimate the ratio of the most liquid elements in the balance sheet and the short-term liabilities. The higher the redemption of these liabilities at the expense of quickly-sold assets, the firm's position is so reliable and the higher the ability to borrow from the bank.