import { useState, useEffect } from 'react'; import { Card, CardHeader, CardTitle, CardContent, CardDescription, CardFooter } from "/components/ui/card"; import { Label } from "/components/ui/label"; import { Input } from "/components/ui/input"; import { Button } from "/components/ui/button"; type Recommendation = { range: string; category: string; remark: string; lenderRecommendation: string; creditAgencyRecommendation: string; }; export default function CreditRiskCalculator() { // Input states const [ownRevenue, setOwnRevenue] = useState(''); const [revenueExpenses, setRevenueExpenses] = useState(''); const [interestCost, setInterestCost] = useState(''); // Calculated values const [ebida, setEbida] = useState(0); const [operatingSurplus, setOperatingSurplus] = useState(0); const [interestCoverageRatio, setInterestCoverageRatio] = useState(0); const [recommendation, setRecommendation] = useState({ range: "", category: "", remark: "", lenderRecommendation: "", creditAgencyRecommendation: "" }); // Convert value to lakhs for display const formatLakhs = (value: number) => { return (value / 100000).toLocaleString('en-IN', { maximumFractionDigits: 2, minimumFractionDigits: 2 }); }; const calculateValues = () => { // Convert inputs to numbers (values in lakhs) const revenue = (parseFloat(ownRevenue) || 0) * 100000; const expenses = (parseFloat(revenueExpenses) || 0) * 100000; const interest = (parseFloat(interestCost) || 0) * 100000; // Calculate EBIDA (1 - 2) const calculatedEbida = revenue - expenses; setEbida(calculatedEbida); // Calculate Operating Surplus (EBIDA - Interest Cost) const calculatedOperatingSurplus = calculatedEbida - interest; setOperatingSurplus(calculatedOperatingSurplus); // Calculate Interest Coverage Ratio (EBIDA / Interest Cost) const calculatedICR = interest !== 0 ? calculatedEbida / interest : 0; setInterestCoverageRatio(calculatedICR); // Set recommendations based on ICR value if (calculatedICR >= 3) { setRecommendation({ range: "> 3", category: "Strong", remark: "Company is comfortably meeting its interest obligations", lenderRecommendation: "Proceed with lending; consider favorable terms such as lower interest rate", creditAgencyRecommendation: "Assign a high rating; reflects low credit risk and strong financial health" }); } else if (calculatedICR >= 1) { setRecommendation({ range: "1 to < 3", category: "Moderate / Caution", remark: "Earnings are adequate but with limited cushion for adverse events", lenderRecommendation: "Lend with caution; consider shorter tenure, collateral, or covenants", creditAgencyRecommendation: "Assign mid-tier rating; monitor closely for operational volatility" }); } else if (calculatedICR > 0) { setRecommendation({ range: "< 1", category: "Weak / Financial Stress", remark: "Interest payments exceed operating earnings; high default risk", lenderRecommendation: "Avoid or restructure existing exposure; seek additional guarantees or security", creditAgencyRecommendation: "Assign low rating; indicates high credit risk and possible financial distress" }); } else { setRecommendation({ range: "N/A", category: "Undefined", remark: "Enter valid values to calculate", lenderRecommendation: "", creditAgencyRecommendation: "" }); } }; useEffect(() => { calculateValues(); }, [ownRevenue, revenueExpenses, interestCost]); const handleInputChange = (e: React.ChangeEvent, setter: React.Dispatch>) => { const value = e.target.value; if (value === '' || /^[0-9]*\.?[0-9]*$/.test(value)) { setter(value); } }; const resetForm = () => { setOwnRevenue(''); setRevenueExpenses(''); setInterestCost(''); setEbida(0); setOperatingSurplus(0); setInterestCoverageRatio(0); setRecommendation({ range: "", category: "", remark: "", lenderRecommendation: "", creditAgencyRecommendation: "" }); }; // Determine color based on ICR value const getRecommendationColor = () => { if (interestCoverageRatio > 3) return 'bg-green-100 border-green-300'; if (interestCoverageRatio < 1) return 'bg-red-100 border-red-300'; return 'bg-blue-100 border-blue-300'; }; // Text color based on ICR value const getTextColor = () => { if (interestCoverageRatio > 3) return 'text-green-800'; if (interestCoverageRatio < 1) return 'text-red-800'; return 'text-blue-800'; }; return (

Credit Risk and Debt Service Calculator Evaluate financial health and debt servicing capacity (All amounts in ₹ Lakhs) {/* Input Section */}

1. Total/Own Revenue (₹ Lakhs) handleInputChange(e, setOwnRevenue)} placeholder="Enter in lakhs" className="border-orange-300 focus:border-orange-500" />

2. Revenue Expenses (₹ Lakhs) handleInputChange(e, setRevenueExpenses)} placeholder="Enter in lakhs" className="border-orange-300 focus:border-orange-500" />

4. Interest Cost (₹ Lakhs) handleInputChange(e, setInterestCost)} placeholder="Enter in lakhs" className="border-orange-300 focus:border-orange-500" />

{/* Results Section */}

3. EBIDA (1-2) (₹ Lakhs)

₹{formatLakhs(ebida)} L

5. Operating Surplus (3-4) (₹ Lakhs)

₹{formatLakhs(operatingSurplus)} L

Interest Coverage Ratio (3 ÷ 4)

3 ? 'text-green-600' : interestCoverageRatio < 1 ? 'text-red-600' : 'text-blue-600' }`}> {interestCoverageRatio.toFixed(2)}x

{/* Recommendation Tab */} {interestCoverageRatio > 0 && (

Credit Risk Assessment

ICR Range

Risk Category

Assessment

{recommendation.range}

{recommendation.category}

{recommendation.remark}

Lending Recommendation:

{recommendation.lenderRecommendation}

Credit Rating Guidance:

{recommendation.creditAgencyRecommendation}

)}

); }