MIRA INFORM REPORT

Report Date :

30.05.2012

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 :	Trader of weaving and textile machinery and dye.

No. of Employees :	04

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate

Payment Behaviour :	No Complaints

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 – March 31^st, 2012

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Turkey

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

NOTES

Full name of the firm was missing at your inquiry.

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

NET SALES

4.251.773 TL	(2010)
7.716.736 TL	(2011)

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)

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.
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
Net Sales	7.716.736
Profit (Loss) Before Tax	127.840
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
Operating Profit (loss)	244.076
Net Profit (loss)	97.870

COMMENT ON FINANCIAL POSITION

Capitalization	Low As of 31.12.2011
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
Gap between average collection and payable periods	Unfavorable in 2011
General Financial Position	Passable

	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
( 01.01-30.04.2012)	0,73 %	1,7910	2,3688	2,8440

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 will be given under "Account Receivable" figure and "Account Payable" figure respectively.

INCOME STATEMENT

	(2011) TL
Net Sales	7.716.736	1,00
Cost of Goods Sold	6.685.403	0,87
Gross Profit	1.031.333	0,13
Operating Expenses	787.257	0,10
Operating Profit	244.076	0,03
Other Income	100.156	0,01
Other Expenses	103.667	0,01
Financial Expenses	112.725	0,01
Minority Interests	0	0,00
Profit (loss) of consolidated firms	0	0,00
Profit (loss) Before Tax	127.840	0,02
Tax Payable	29.970	0,00
Postponed Tax Gain	0	0,00
Net Profit (loss)	97.870	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.55.58
UK Pound	1	Rs.87.14
Euro	1	Rs.69.73

INFORMATION DETAILS

Report Prepared by :

MNL

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.

MIRA INFORM REPORT

COMPANY IDENTIFICATION

LEGAL STATUS AND HISTORY

OWNERSHIP / MANAGEMENT

OPERATIONS

FINANCE

COMMENT ON FINANCIAL POSITION

BALANCE SHEETS

INCOME STATEMENT

FINANCIAL RATIOS

Unit