MIRA INFORM REPORT

 

 

Report Date :

28.12.2012

 

IDENTIFICATION DETAILS

 

Name :

MERT TEKSTIL ITHALAT VE IHRACAT LTD. STI.

 

 

 

 

Registered Office :

Camlik Mah. Camlik Cad. Yesilkent Sit. No:94 Merkez Denizli

 

 

Country :

Turkey

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

26.06.1979

 

 

Com. Reg. No.:

19224

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Trade of weaving and textile machinery and dye.

 

 

No. of Employees :

4

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow

Litigation :

Clear

 

 

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Turkey

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

TURKEY - ECONOMIC OVERVIEW

 

Turkey's largely free-market economy is increasingly driven by its industry and service sectors, although its traditional agriculture sector still accounts for about 25% of employment. An aggressive privatization program has reduced state involvement in basic industry, banking, transport, and communication, and an emerging cadre of middle-class entrepreneurs is adding dynamism to the economy and expanding production beyond the traditional textiles and clothing sectors. The automotive, construction, and electronics industries, are rising in importance and have surpassed textiles within Turkey's export mix. Oil began to flow through the Baku-Tbilisi-Ceyhan pipeline in May 2006, marking a major milestone that will bring up to 1 million barrels per day from the Caspian to market. Several gas pipelines projects also are moving forward to help transport Central Asian gas to Europe through Turkey, which over the long term will help address Turkey's dependence on imported oil and gas to meet 97% of its energy needs. After Turkey experienced a severe financial crisis in 2001, Ankara adopted financial and fiscal reforms as part of an IMF program. The reforms strengthened the country's economic fundamentals and ushered in an era of strong growth - averaging more than 6% annually until 2008. Global economic conditions and tighter fiscal policy caused GDP to contract in 2009, but Turkey's well-regulated financial markets and banking system helped the country weather the global financial crisis and GDP rebounded strongly to 8.2% in 2010, as exports returned to normal levels following the recession. Turkey's public sector debt to GDP ratio has fallen to roughly 40%. Continued strong growth has pushed inflation to the 8% level, however, and worsened an already high current account deficit. Turkey remains dependent on often volatile, short-term investment to finance its large trade deficit. The stock value of FDI stood at $99 billion at year-end 2011. Inflows have slowed considerably in light of continuing economic turmoil in Europe, the source of much of Turkey's FDI. Further economic and judicial reforms and prospective EU membership are expected to boost Turkey's attractiveness to foreign investors. However, Turkey's relatively high current account deficit, uncertainty related to monetary policy-making, and political turmoil within Turkey's neighborhood leave the economy vulnerable to destabilizing shifts in investor confidence.

Source : CIA

COMPANY IDENTIFICATION

 

 

NAME

:

MERT TEKSTIL ITHALAT VE IHRACAT LTD. STI.

HEAD OFFICE ADDRESS

:

Camlik Mah. Camlik Cad. Yesilkent Sit. No:94 Merkez Denizli / Turkey

PHONE NUMBER

:

90-258-211 35 50

 

FAX NUMBER

:

90-258-211 89 50

 

WEB-ADDRESS

:

www.merttex.com

E-MAIL

:

info@merttex.com

 

 

LEGAL STATUS AND HISTORY

 

 

NOTES ON LEGAL STATUS AND HISTORY

:

Change at registration no.

 

 

TAX OFFICE

:

Pamukkale

TAX NO

:

6180038825

REGISTRATION NUMBER

:

19224

REGISTERED OFFICE

:

Denizli Chamber of Commerce

DATE ESTABLISHED

:

26.06.1979

LEGAL FORM

:

Limited Company

TYPE OF COMPANY

:

Private

 

REGISTERED CAPITAL

:

TL   250.000

PAID-IN CAPITAL

:

TL   250.000

HISTORY

:

Previous Registered Capital

:

TL 10.000

Changed On

:

30.09.2011 (Commercial Gazette Date /Number 05.10.2011/ 7914)

Previous Address

:

Camlaralti Mah. Kinikli Cad. No: 1 Merkez - Denizli

Changed On

:

23.06.2008 (Commercial Gazette Date /Number 02.07.2008/ 7096)

Previous Shareholder

:

Please vide Previous Shareholders section for the former shareholders' names.

Changed On

:

23.08.2007 (Commercial Gazette Date /Number 29.08.2007/ 6884)

Other Changes

:

The firm was firstly established in Istanbul on 26.06.1979 and registered at Istanbul Commercial Registry with registration no:164690. Then the firm moved to Denizli and registered at Denizli Commercial Registry with reg no. 19224.

Changed On

:

10.05.2001 (Commercial Gazette Date /Number 23.05.2001/ 5301)

 

 

 

PREVIOUS SHAREHOLDERS

:

Hakan Mogul

99 %

Alaaddin Tokel

1 %

 

 

OWNERSHIP / MANAGEMENT

 

 

SHAREHOLDERS

:

Hakan Mogul

50 %

Yavuz Mogul

50 %

 

 

SISTER COMPANIES

:

Declared to be: None

 

SUBSIDIARIES

:

None

 

DIRECTORS

:

Huseyin Mogul

 

 

 

OPERATIONS

 

 

BUSINESS ACTIVITIES

:

Trade of weaving and textile machinery and dye.

 

NACE CODE

:

G .51.83

 

SECTOR

:

Commerce

 

 

NUMBER OF EMPLOYEES

:

4

 

NET SALES

:

4.251.773 TL

(2010) 

7.716.736 TL

(2011) 

3.758.366 TL

(01.01-30.09.2012) 

 

 

CAPACITY

:

None

 

PRODUCTION

:

None

 

IMPORT COUNTRIES

:

Italy

 

MERCHANDISE IMPORTED

:

Weaving and textile machinery

 

EXPORT VALUE

:

3.910.976 TL

(2010)

6.813.925 TL

(2011)

3.584.681 TL

(01.01-30.09.2012)

 

 

EXPORT COUNTRIES

:

Pakistan

India

 

MERCHANDISE  EXPORTED

:

Weaving machinery

 

HEAD OFFICE ADDRESS

:

Camlik Mah. Camlik Cad. Yesilkent Sit. No:94 Merkez Denizli / Turkey

( owned by shareholder(s) )

 

INVESTMENTS

:

None

 

 

TREND OF BUSINESS

:

There was an upwards trend in 2011. There appears a decline at business volume in nominal terms in 1.1 - 30.9.2012.

SIZE OF BUSINESS

:

Moderate

 

 

FINANCE

 

 

MAIN DEALING BANKS

:

Finansbank Bayramyeri Branch

T. Finans Katilim Bankasi Denizli Branch

Turk Ekonomi Bankasi Sanayi Branch

 

CREDIT FACILITIES

:

The subject company is making active use of credit facilities.

 

PAYMENT BEHAVIOUR

:

We are informed about a few payment delays in the former years which were resolved later on but no payment delays have come to our knowledge in the last years.

 

 

KEY FINANCIAL ELEMENTS

:

 

(2011) TL

(01.01-30.09.2012) TL

Net Sales

7.716.736

3.758.366

Profit (Loss) Before Tax

127.840

-31.818

Stockholders' Equity

351.953

 

Total Assets

1.987.565

 

Current Assets

1.911.811

 

Non-Current Assets

75.754

 

Current Liabilities

1.607.260

 

Long-Term Liabilities

28.352

 

Gross Profit (loss)

1.031.333

441.899

Operating Profit (loss)

244.076

47.466

Net Profit (loss)

97.870

-31.818

 

 

COMMENT ON FINANCIAL POSITION

 

Capitalization

Low As of 31.12.2011

Remarks on Capitalization

The loss at the last period is expected to have a further negative effect on equity total since the last balance sheet date.

 

Liquidity

In Order As of 31.12.2011

Remarks On Liquidity

The liquid assets consist mainly of receivables the amount of cash&banks or marketable securities (which are more liquid) are low.

 

Profitability

Fair Operating Profitability  in 2011

Low Net Profitability  in 2011

Low Operating Profitability (01.01-30.09.2012)

Net Loss (01.01-30.09.2012)

 

Gap between average collection and payable periods

Unfavorable in 2011

General Financial Position

Unsatisfactory

 

 

 

Incr. in producers’ price index

 

Average USD/TL

Average EUR/TL

Average GBP/ TL

 ( 2010 )

8,87 %

1,5128

2,0096

2,3410

 ( 2011 )

13,33 %

1,6797

2,3378

2,6863

 ( 01.01-30.09.2012)

3,34 %

1,8029

2,3233

2,8527

 ( 01.01-30.11.2012)

2,58 %

1,8006

2,3240

2,8569

 

 

BALANCE SHEETS

 

 

 ( 31.12.2011 )  TL

 

CURRENT ASSETS

1.911.811

0,96

Not Detailed Current Assets

0

0,00

Cash and Banks

3.335

0,00

Marketable Securities

0

0,00

Account Receivable

277.770

0,14

Other Receivable

632.878

0,32

Inventories

334.452

0,17

Advances Given

535.947

0,27

Accumulated Construction Expense

0

0,00

Other Current Assets

127.429

0,06

NON-CURRENT ASSETS

75.754

0,04

Not Detailed Non-Current Assets

0

0,00

Long-term Receivable

0

0,00

Financial Assets

0

0,00

Tangible Fixed Assets (net)

74.151

0,04

Intangible Assets

699

0,00

Deferred Tax Assets

0

0,00

Other Non-Current Assets

904

0,00

TOTAL ASSETS

1.987.565

1,00

CURRENT LIABILITIES

1.607.260

0,81

Not Detailed Current Liabilities

0

0,00

Financial Loans

1.067.102

0,54

Accounts Payable

27.943

0,01

Loans from Shareholders

0

0,00

Other Short-term Payable

28.907

0,01

Advances from Customers

447.258

0,23

Accumulated Construction Income

0

0,00

Taxes Payable

11.031

0,01

Provisions

10.182

0,01

Other Current Liabilities

14.837

0,01

LONG-TERM LIABILITIES

28.352

0,01

Not Detailed Long-term Liabilities

0

0,00

Financial Loans

0

0,00

Securities Issued

0

0,00

Long-term Payable

0

0,00

Loans from Shareholders

28.352

0,01

Other Long-term Liabilities

0

0,00

Provisions

0

0,00

STOCKHOLDERS' EQUITY

351.953

0,18

Not Detailed Stockholders' Equity

0

0,00

Paid-in Capital

250.000

0,13

Cross Shareholding Adjustment of Capital

0

0,00

Inflation Adjustment of Capital

0

0,00

Equity of Consolidated Firms

0

0,00

Reserves

4.083

0,00

Revaluation Fund

0

0,00

Accumulated Losses(-)

0

0,00

Net Profit (loss)

97.870

0,05

TOTAL LIABILITIES AND EQUITY

1.987.565

1,00

 

 

REMARKS ON FINANCIAL STATEMENT

:

At the financial statements according to TAS, "Cheques Received" and "Outstanding Cheques" figures are under "Cash And Banks" figure. Beginning from the financial statements of 31.12.2011, "Cheques Received" and "Outstanding Cheques" figures are given under "Account Receivable" figure and "Account Payable" figure respectively.

 

 

INCOME STATEMENTS

 

 

(2011) TL

 

(01.01-30.09.2012) TL

 

Net Sales

7.716.736

1,00

3.758.366

1,00

Cost of Goods Sold

6.685.403

0,87

3.316.467

0,88

Gross Profit

1.031.333

0,13

441.899

0,12

Operating Expenses

787.257

0,10

394.433

0,10

Operating Profit

244.076

0,03

47.466

0,01

Other Income

100.156

0,01

130.306

0,03

Other Expenses

103.667

0,01

74.847

0,02

Financial Expenses

112.725

0,01

134.743

0,04

Minority Interests

0

0,00

0

0,00

Profit (loss) of consolidated firms

0

0,00

0

0,00

Profit (loss) Before Tax

127.840

0,02

-31.818

-0,01

Tax Payable

29.970

0,00

0

0,00

Postponed Tax Gain

0

0,00

0

0,00

Net Profit (loss)

97.870

0,01

-31.818

-0,01

 

FINANCIAL RATIOS

 

 

(2011)

LIQUIDITY RATIOS

 

Current Ratio

1,19

Acid-Test Ratio

0,57

Cash Ratio

0,00

ASSET STRUCTURE RATIOS

 

Inventory/Total Assets

0,17

Short-term Receivable/Total Assets

0,46

Tangible Assets/Total Assets

0,04

TURNOVER RATIOS

 

Inventory Turnover

19,99

Stockholders' Equity Turnover

21,93

Asset Turnover

3,88

FINANCIAL STRUCTURE

 

Stockholders' Equity/Total Assets

0,18

Current Liabilities/Total Assets

0,81

Financial Leverage

0,82

Gearing Percentage

4,65

PROFITABILITY RATIOS

 

Net Profit/Stockholders' Eq.

0,28

Operating Profit Margin

0,03

Net Profit Margin

0,01

Interest Cover

2,13

COLLECTION-PAYMENT

 

Average Collection Period (days)

12,96

Average Payable Period (days)

1,50

WORKING CAPITAL

304551,00

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.84

UK Pound

1

Rs.88.55

Euro

1

Rs.72.63

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.