MIRA INFORM REPORT

 

 

Report Date :

11.09.2012

 

IDENTIFICATION DETAILS

 

Name :

KIVANC TEKSTIL SANAYI VE TICARET A.S.

 

 

 

Registered Office :

Mersin Yolu Uzeri 13. Km Seyhan Adana

 

 

Country :

Turkey

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

14.10.1993

 

 

Com. Reg. No.:

27229

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacture and trade of yarn (combed cotton, polyester and open-end),  dying, fabric weaving. 

 

 

No. of Employees :

1.000

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Satisfactory

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 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

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

:

KIVANC TEKSTIL SANAYI VE TICARET A.S.

HEAD OFFICE ADDRESS

:

Mersin Yolu Uzeri 13. Km Seyhan Adana / Turkey

PHONE NUMBER

:

90-322-441 09 15

 

FAX NUMBER

:

90-322-441 09 18

 

WEB-ADDRESS

:

www.kivanctekstil.com.tr

 

 

LEGAL STATUS AND HISTORY

 

TAX OFFICE

:

Yuregir

TAX NO

:

5590022595

REGISTRATION NUMBER

:

27229

REGISTERED OFFICE

:

Adana Chamber of Commerce

DATE ESTABLISHED

:

14.10.1993

ESTABLISHMENT GAZETTE DATE/NO

:

19.10.1993/3387

LEGAL FORM

:

Joint Stock Company

TYPE OF COMPANY

:

Private

REGISTERED CAPITAL

:

TL   17.350.000

PAID-IN CAPITAL

:

TL   17.350.000

 

HISTORY

:

Previous Registered Capital

:

TL 15.000.000

Changed On

:

05.05.2009 (Commercial Gazette Date /Number 15.05.2009/ 7312)

 

 

OWNERSHIP / MANAGEMENT

 

SHAREHOLDERS

:

Haci Mustafa Kivanc

31 %

Ziya Kivanc

24 %

Zeki Kivanc

20 %

Mehmet Kivanc

13 %

Fatih Kivanc

10 %

Gulbeyaz Kivanc

2 %

 

 

SISTER COMPANIES

:

GULLER ELEKTRIK URETIM VE DAGITIM A.S.

 

ILGAZ ELEKTRIK URETIM VE DAGITIM LTD. STI.

 

KIVANC ENERJI ELEKTRIK URETIM SANAYI VE TICARET A.S.

 

KONUR ELEKTRIK URETIM A.S.

 

ONUR ELEKTRIK URETIM VE DAGITIM A.S.

 

SEBIL ENERJI ELEKTRIK URETIM SANAYI VE TICARET A.S.

 

BOARD OF DIRECTORS

:

Haci Mustafa Kivanc

Chairman

Ziya Kivanc

Vice-Chairman

Fatih Kivanc

Member

Mehmet Kivanc

Member

Zeki Kivanc

Member

 

 

OPERATIONS

 

BUSINESS ACTIVITIES

:

Manufacture and trade of yarn (combed cotton, polyester and open-end),  dying, fabric weaving. 

 

NACE CODE

:

DB.17.30

 

SECTOR

:

Textile

 

NUMBER OF EMPLOYEES

:

1.000

 

REMARKS ON NUMBER OF EMPLOYEES

:

The number of employees also includes sub-contractors.

 

 

 

NET SALES

:

76.595.953 TL

(2007) 

63.742.680 TL

(2008) 

75.249.794 TL

(2009) 

101.169.021 TL

(2010) 

109.470.885 TL

(2011) 

58.923.932 TL

(01.01-30.06.2012) 

 

 

IMPORT VALUE

:

7.446.997 USD

(2009)

12.500.000 USD

(2010)

20.524.671 USD

(2011)

 

 

IMPORT COUNTRIES

:

India

Far East Countries

Austria

European Countries

 

MERCHANDISE IMPORTED

:

Fiber

Machinery

Raw materials

Spare parts

Yarn

 

EXPORT VALUE

:

17.812.617 TL

(2006)

23.263.294 TL

(2007)

26.658.038 TL

(2008)

28.857.630 TL

(2009)

32.208.788 TL

(2010)

36.772.140 TL

(2011)

24.780.925 TL

(01.01-30.06.2012)

 

 

EXPORT COUNTRIES

:

Italy

Middle East Countries

Poland

Bulgaria

France

India

Romania

Greece

China

 

MERCHANDISE  EXPORTED

:

Fabric

Fibres

 

HEAD OFFICE ADDRESS

:

Mersin Yolu Uzeri 13. Km Seyhan  Adana / Turkey ( owned )

 

 

BRANCHES

:

Warehouse  :  Keresteciler Sitesi Savas Cad. Ciftcioglu Ishani No:5/1 Merter Istanbul/Turkey (owned)

 

Warehouse  :  Abidin Pasa Cad. No:130 Seyhan Adana/Turkey (owned)

(3.000 sqm)

 

Factory  :  Cerkezkoy Organize Sanayi Bolgesi Tekirdag/Turkey (owned) (30.000 sqm)

 

Store  :  Keresteciler Sitesi Savas Cad. Akasya Sk. No:20 Istanbul/Turkey (rented)

 

Head Office/Factory  :  Mersin Yolu Uzeri 13. Km Seyhan Adana/Turkey (owned) (70.000 sqm)

                                                                                

 

TREND OF BUSINESS

:

There was a slowdown at business volume in real terms in  2011. There appears an upwards trend in  1.1 - 30.6.2012.

SIZE OF BUSINESS

:

Giant

 

 

FINANCE

 

MAIN DEALING BANKS

:

Garanti Bankasi Adana Branch

HSBC Bank Adana Branch

T. Halk Bankasi Adana Branch

 

CREDIT FACILITIES

:

The subject company is making active use of credit facilities.

 

PAYMENT BEHAVIOUR

:

No payment delays have come to our knowledge.

 

 

 

KEY FINANCIAL ELEMENTS

:

 

(2008) TL

(2009) TL

(2010) TL

(2011) TL

(01.01-30.06.2012) TL

Net Sales

63.742.680

75.249.794

101.169.021

109.470.885

58.923.932

Profit (Loss) Before Tax

1.055.210

5.062.431

12.547.896

3.403.790

8.605.363

Stockholders' Equity

43.436.300

50.309.888

59.931.993

65.603.270

 

Total Assets

104.241.004

109.181.676

127.127.688

156.050.050

 

Current Assets

76.748.973

80.260.809

96.145.868

113.195.843

 

Non-Current Assets

27.492.031

28.920.867

30.981.820

42.854.207

 

Current Liabilities

15.954.131

27.494.634

21.406.998

20.039.390

 

Long-Term Liabilities

44.850.573

31.377.154

45.788.697

70.407.390

 

Gross Profit (loss)

15.581.457

18.029.094

22.743.855

27.795.158

14.659.405

Operating Profit (loss)

10.882.094

10.681.959

14.380.059

17.674.895

8.545.381

Net Profit (loss)

1.055.210

4.008.432

10.070.252

2.192.292

8.605.363

 

 

COMMENT ON FINANCIAL POSITION

 

Capitalization

Satisfactory As of 31.12.2011

Liquidity

Satisfactory As of 31.12.2011

Remarks On Liquidity

The unfavorable gap between average collection and average payable period has an adverse effect on liquidity.

Profitability

High Operating Profitability  in 2008

Low Net Profitability  in 2008

High Operating Profitability  in 2009

Good Net Profitability  in 2009

High Operating Profitability  in 2010

High Net Profitability  in 2010

High Operating Profitability  in 2011

Fair Net Profitability  in 2011

High Operating Profitability (01.01-30.06.2012)

High Net Profitability (01.01-30.06.2012)

 

Gap between average collection and payable periods

Unfavorable in 2011

General Financial Position

Satisfactory

 

 

 

Incr. in producers’ price index

 

Average USD/TL

Average EUR/TL

Average GBP/ TL

 ( 2006 )

11,58 %

1,4309

1,7987

2,6377

 ( 2007 )

5,94 %

1,3075

1,7901

2,6133

 ( 2008 )

8,11 %

1,2858

1,8876

2,3708

 ( 2009 )

5,93 %

1,5460

2,1529

2,4094

 ( 2010 )

8,87 %

1,5128

2,0096

2,3410

 ( 2011 )

13,33 %

1,6797

2,3378

2,6863

 ( 01.01-30.06.2012)

1,95 %

1,8028

2,3463

2,8462

 ( 01.01-31.08.2012)

2,28 %

1,8038

2,3238

2,8465

 

 

BALANCE SHEETS

 

 

 ( 31.12.2008 )  TL

 

 ( 31.12.2009 )  TL

 

 ( 31.12.2010 )  TL

 

 ( 31.12.2011 )  TL

 

CURRENT ASSETS

76.748.973

0,74

80.260.809

0,74

96.145.868

0,76

113.195.843

0,73

Not Detailed Current Assets

0

0,00

0

0,00

0

0,00

0

0,00

Cash and Banks

13.066.674

0,13

17.961.741

0,16

20.926.738

0,16

2.101.410

0,01

Marketable Securities

0

0,00

0

0,00

0

0,00

0

0,00

Account Receivable

28.424.764

0,27

25.767.278

0,24

32.759.681

0,26

61.014.893

0,39

Other Receivable

389.071

0,00

369.490

0,00

2.798.733

0,02

692.503

0,00

Inventories

31.724.439

0,30

32.383.651

0,30

35.914.390

0,28

45.754.188

0,29

Advances Given

731.931

0,01

787.659

0,01

411.534

0,00

37.929

0,00

Accumulated Construction Expense

0

0,00

0

0,00

0

0,00

0

0,00

Other Current Assets

2.412.094

0,02

2.990.990

0,03

3.334.792

0,03

3.594.920

0,02

NON-CURRENT ASSETS

27.492.031

0,26

28.920.867

0,26

30.981.820

0,24

42.854.207

0,27

Not Detailed Non-Current Assets

0

0,00

0

0,00

0

0,00

0

0,00

Long-term Receivable

7.702

0,00

7.676

0,00

7.838

0,00

10.210

0,00

Financial Assets

0

0,00

0

0,00

0

0,00

0

0,00

Tangible Fixed Assets (net)

25.759.187

0,25

27.523.718

0,25

29.671.506

0,23

41.588.705

0,27

Intangible Assets

997.728

0,01

870.904

0,01

767.831

0,01

666.284

0,00

Deferred Tax Assets

0

0,00

0

0,00

0

0,00

0

0,00

Other Non-Current Assets

727.414

0,01

518.569

0,00

534.645

0,00

589.008

0,00

TOTAL ASSETS

104.241.004

1,00

109.181.676

1,00

127.127.688

1,00

156.050.050

1,00

CURRENT LIABILITIES

15.954.131

0,15

27.494.634

0,25

21.406.998

0,17

20.039.390

0,13

Not Detailed Current Liabilities

0

0,00

0

0,00

0

0,00

0

0,00

Financial Loans

6.509.717

0,06

17.314.639

0,16

10.088.970

0,08

7.945.834

0,05

Accounts Payable

7.293.215

0,07

6.315.164

0,06

5.435.358

0,04

5.979.115

0,04

Loans from Shareholders

0

0,00

0

0,00

0

0,00

335.075

0,00

Other Short-term Payable

50.792

0,00

208.610

0,00

260.985

0,00

359.861

0,00

Advances from Customers

879.087

0,01

2.569.641

0,02

3.858.277

0,03

2.324.304

0,01

Accumulated Construction Income

0

0,00

0

0,00

0

0,00

0

0,00

Taxes Payable

167.614

0,00

653.394

0,01

1.090.566

0,01

1.617.189

0,01

Provisions

0

0,00

0

0,00

0

0,00

0

0,00

Other Current Liabilities

1.053.706

0,01

433.186

0,00

672.842

0,01

1.478.012

0,01

LONG-TERM LIABILITIES

44.850.573

0,43

31.377.154

0,29

45.788.697

0,36

70.407.390

0,45

Not Detailed Long-term Liabilities

0

0,00

0

0,00

0

0,00

0

0,00

Financial Loans

38.119.909

0,37

30.096.106

0,28

45.634.097

0,36

70.067.674

0,45

Securities Issued

0

0,00

0

0,00

0

0,00

0

0,00

Long-term Payable

151.230

0,00

150.571

0,00

154.600

0,00

339.716

0,00

Loans from Shareholders

6.579.434

0,06

1.130.477

0,01

0

0,00

0

0,00

Other Long-term Liabilities

0

0,00

0

0,00

0

0,00

0

0,00

Provisions

0

0,00

0

0,00

0

0,00

0

0,00

STOCKHOLDERS' EQUITY

43.436.300

0,42

50.309.888

0,46

59.931.993

0,47

65.603.270

0,42

Not Detailed Stockholders' Equity

0

0,00

0

0,00

0

0,00

0

0,00

Paid-in Capital

15.000.000

0,14

17.350.000

0,16

17.350.000

0,14

17.350.000

0,11

Cross Shareholding Adjustment of Capital

0

0,00

0

0,00

0

0,00

0

0,00

Inflation Adjustment of Capital

22.129.712

0,21

22.129.712

0,20

22.129.712

0,17

22.129.712

0,14

Equity of Consolidated Firms

0

0,00

0

0,00

0

0,00

0

0,00

Reserves

5.251.378

0,05

6.821.744

0,06

10.382.029

0,08

22.070.886

0,14

Revaluation Fund

0

0,00

0

0,00

0

0,00

1.860.380

0,01

Accumulated Losses(-)

0

0,00

0

0,00

0

0,00

0

0,00

Net Profit (loss)

1.055.210

0,01

4.008.432

0,04

10.070.252

0,08

2.192.292

0,01

TOTAL LIABILITIES AND EQUITY

104.241.004

1,00

109.181.676

1,00

127.127.688

1,00

156.050.050

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. 

 

At the last income statement TL 4.700.058 of the other income is due to "Profit from Foreign Currency Exchange". 

 

At the last income statement TL 1.524.506of the other expenses is due to "Loss from Foreign Currency Exchange" .

 

 

 

INCOME STATEMENTS

 

 

(2008) TL

 

(2009) TL

 

(2010) TL

 

Net Sales

63.742.680

1,00

75.249.794

1,00

101.169.021

1,00

Cost of Goods Sold

48.161.223

0,76

57.220.700

0,76

78.425.166

0,78

Gross Profit

15.581.457

0,24

18.029.094

0,24

22.743.855

0,22

Operating Expenses

4.699.363

0,07

7.347.135

0,10

8.363.796

0,08

Operating Profit

10.882.094

0,17

10.681.959

0,14

14.380.059

0,14

Other Income

6.640.908

0,10

3.761.631

0,05

8.233.533

0,08

Other Expenses

14.095.158

0,22

5.985.907

0,08

7.304.275

0,07

Financial Expenses

2.372.634

0,04

3.395.252

0,05

2.761.421

0,03

Minority Interests

0

0,00

0

0,00

0

0,00

Profit (loss) of consolidated firms

0

0,00

0

0,00

0

0,00

Profit (loss) Before Tax

1.055.210

0,02

5.062.431

0,07

12.547.896

0,12

Tax Payable

0

0,00

1.053.999

0,01

2.477.644

0,02

Postponed Tax Gain

0

0,00

0

0,00

0

0,00

Net Profit (loss)

1.055.210

0,02

4.008.432

0,05

10.070.252

0,10

 

 

 

(2011) TL

 

(01.01-30.06.2012) TL

 

Net Sales

109.470.885

1,00

58.923.932

1,00

Cost of Goods Sold

81.675.727

0,75

44.264.527

0,75

Gross Profit

27.795.158

0,25

14.659.405

0,25

Operating Expenses

10.120.263

0,09

6.114.024

0,10

Operating Profit

17.674.895

0,16

8.545.381

0,15

Other Income

6.286.160

0,06

5.202.899

0,09

Other Expenses

15.252.240

0,14

2.657.349

0,05

Financial Expenses

5.305.025

0,05

2.485.568

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

3.403.790

0,03

8.605.363

0,15

Tax Payable

1.211.498

0,01

0

0,00

Postponed Tax Gain

0

0,00

0

0,00

Net Profit (loss)

2.192.292

0,02

8.605.363

0,15

 

FINANCIAL RATIOS

 

 

(2008)

(2009)

(2010)

(2011)

LIQUIDITY RATIOS

 

 

Current Ratio

4,81

2,92

4,49

5,65

Acid-Test Ratio

2,63

1,60

2,64

3,18

Cash Ratio

0,82

0,65

0,98

0,10

ASSET STRUCTURE RATIOS

 

 

Inventory/Total Assets

0,30

0,30

0,28

0,29

Short-term Receivable/Total Assets

0,28

0,24

0,28

0,40

Tangible Assets/Total Assets

0,25

0,25

0,23

0,27

TURNOVER RATIOS

 

 

Inventory Turnover

1,52

1,77

2,18

1,79

Stockholders' Equity Turnover

1,47

1,50

1,69

1,67

Asset Turnover

0,61

0,69

0,80

0,70

FINANCIAL STRUCTURE

 

 

Stockholders' Equity/Total Assets

0,42

0,46

0,47

0,42

Current Liabilities/Total Assets

0,15

0,25

0,17

0,13

Financial Leverage

0,58

0,54

0,53

0,58

Gearing Percentage

1,40

1,17

1,12

1,38

PROFITABILITY RATIOS

 

 

Net Profit/Stockholders' Eq.

0,02

0,08

0,17

0,03

Operating Profit Margin

0,17

0,14

0,14

0,16

Net Profit Margin

0,02

0,05

0,10

0,02

Interest Cover

1,44

2,49

5,54

1,64

COLLECTION-PAYMENT

 

 

Average Collection Period (days)

160,58

123,31

116,60

200,68

Average Payable Period (days)

55,65

40,68

25,66

27,85

WORKING CAPITAL

60794842,00

52766175,00

74738870,00

93156453,00

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.55.34

UK Pound

1

Rs.88.50

Euro

1

Rs.70.74

 

 

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.