How Credit Turnover calculation or CTO process ratio analysis


1.1: Receiving the file: Receiving the file for CTO (credit Turn over) ratio analysis.
1.2: Analyze the business Nature for calculation: Analyze the business nature by seeing the latest ‘Trade License’ of the customer. As well as see the specific location of the business to categorize the business. Location is very important for CTO analysis. In maximum case outside Dhaka file calculates TOTAL, because those business organizations have more transaction.
Two type of CTO are necessary to calculate, depending on the nature of the Business:
1.2.1: TOTAL
1.2.2: CTO
1.2.1: TOTAL includes: Service Sector:

  • Indenter
  •  Supplier
  • Share Broker
  • Recruiting Agent
  • C & F Agent/ Freight Forwarding
  • Stevedoring
  • Tyre & Battery
  • Petrol Pump
  • Supplier of Poultry Feed
  • Distributor
  • Distributor/Dealer/Agent of FMCG
  • Travel Agent Wholesalers:

  • Raw Leather
  • Teak, Saw Mill
  • Hardware
  • Construction Materiel
  • Yarn
  • Food commodity wholesaler and Stockiest
  • Motor/Cycle/CNG parts
  • Paper, Stationary
  • Electric Goods Switch, Bulb, Etc)
  • Cloth/Shoe Professional Categories:

  • Doctors
  • Engineers
  • Architects
  • Accountants
  • Consultants
  • Lawyer

1.2.2: CTO Includes: Manufacturing Sector:

  • Steel Re rolling
  • Brick Field
  • Textile
  • Readymade Garments Backward Linkage
  • PVC Pipe/Compound
  • Cable/Hardware items
  • Chemical Products
  • Machine tools/Engineering works
  • Fishing Nets/Fishing Equipment
  • Other Intermediate Products
  • Real State
  • Medicine
  • RMG – Local market/ Shoes/Hosiery
  • Edible Oil
  • Confectionary/Food Items
  • Lubricant
  • Light Shades
  • Audio Tape, VCD
  • Plastic Goods
  • Watch
  • Electronics Goods
  • Toiletries/ Cosmetics
  • Umbrella
  • Bicycle
  • LP Gas Importer & wholesalers:

  • Coal
  • Chemical Dye
  • PVC Material
  • Office Equipment
  • Tyer, Automotive Parts
  • Textile
  • Fruits
  • Medicine
  • Bathroom fittings & sanitary items
  • Food Commodity
  • Readymade garments
  • Jute/Jute Goods
  • Tea
  • Leather/Leather Goods/Tannery
  • Seafood/Hatchery
  • Vegetable Service Provider:

  • Auto Servicing Center
  • Owner of Residential Hotel/ Guest House
  • Restaurant and Fast food owner
  • Printing & Publishing
  • Audio Recording Company
  • Film/Package producer
  • Coaching Center/Computer Education
  • Beauty Salon
  • Courier Service
  • Transport Business
  • Stone Crasher
  • Owner of Clinic
  • Security Service
  • Owner of Pvt University
  • Internet Service Provider
  • Entertainment Services
  • Ad Agency
  • Student Counseling
  • Software / Networking
  • Owner of Community Center
  • Business Center
  • Aluminum Fabricator
  • Surveyor Retailer:

  • Ready made garments
  • Saree
  • Textile
  • Shoe
  • Curtain/ Foam/ Mattress
  • Optical
  • Tailor
  • Motor parts/Car Accessories
  • Car
  • Furniture
  • Electronics/Mobile Phone
  • Computer / Computer Accessories
  • Watch
  • Cassette/CD/DVD
  • Light Shade
  • Jewelry
  • Steel Products
  • Books & Stationary
  • Color Lab & Photo Studio/Video Recording
  • Supermarket /Dept Store/ Gift Shop
  • Sweet meat/Confectionery
  • Cosmetics
  • Plastic Toy
  • Cookeries
  • Glass, Mirror
  • Sports Goods
  • Pharmacy
  • Dealer of Paints
  • Contractor, Construction Company
  • Buying House

1.3: CTO Calculation: Divide the months (last six months) in the Bank Statement. Per transaction is calculated in terms of thousand. i.e. the last three digits are eliminated in this case. Category wise CTO calculates into two ways:
1.3.1: Total: Calculates all the Credits of BS (Bank Statement) EXCEPT:

  • Any Return Cheque amount
  • Any Loan Disbursement amount
  • Any Income from interest amount
  • Any FDR withdrawal amount
  • Any unmatched or irregular amount
  • Any loan repayment amount

15.3.2: CTO: Calculates all the Credits of BS (Bank Statement) EXCEPT:

  • Same date and same amount of money (in taka) deposit as well as withdrawal
  • Same date different amount deposit as well as withdrawal:
  • If Credit deposit is greater than debit withdrawal then deduct the withdrawal amount from deposit amount and count the result for CTO

If Credit Deposit – Debit Withdrawal = Result

  • Count the amount from the result for CTO
  • If Credit deposit is smaller than debit withdrawal then DO NOT CALCULATE any amount for CTO
  • Any Return Cheque amount
  • Any Loan Disbursement amount
  • Any Income from interest amount
  • Any FDR withdrawal amount
  • Any unmatched or irregular amount
  • Any loan repayment amount

1.4: Log-in to the MIS Module and allocate the file by serial number: After CTO calculations login to the MIS module and assign the loan/card (if). And then manually allocate the file by Searching the file number and then allocate it by own name (officer who is doing the CTO). And lastly submit it in the MIS Module.
1.5: Input the CTO result in the Analyst Module: log in to the analyst Module and open the file-serial number wise. Then CTO module will show in the window. Change the months as required and click on Refresh calculation. Input the CTO results month wise and click on refresh calculation again. Put the name and the account type of the Applicant and submit.
If there is more than one (not more than three) Bank Statement, input the CTO results in the CTO module as same way.