MIRA INFORM REPORT

 

 

Report Date :

12.04.2013

 

IDENTIFICATION DETAILS

 

Name :

BRODERI NARIN ISLEMELI KUMAS SANAYI A.S.

 

 

Registered Office :

Mahmutbey Mah. Tasocagi Yolu Cad. No:16 Bagcilar Istanbul

 

 

Country :

Turkey

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

18.05.1968

 

 

Com. Reg. No.:

98893

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacture and trade of home textile products.  The subject orders textile products to be dyed in the name of the subject company to contract manufacturers.

 

 

No. of Employees :

38

 

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 but correct

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

:

BRODERI NARIN ISLEMELI KUMAS SANAYI A.S.

HEAD OFFICE ADDRESS

:

Mahmutbey Mah. Tasocagi Yolu Cad. No:16 Bagcilar Istanbul / Turkey

PHONE NUMBER

:

90-212-446 37 93

 

FAX NUMBER

:

90-212-446 37 80

 

WEB-ADDRESS

:

www.broderinarin.com

E-MAIL

:

info@broderinarin.com

 

 

LEGAL STATUS AND HISTORY

 

 

TAX OFFICE

:

Gunesli

TAX NO

:

1870024301

REGISTRATION NUMBER

:

98893

REGISTERED OFFICE

:

Istanbul Chamber of Commerce

DATE ESTABLISHED

:

18.05.1968

LEGAL FORM

:

Joint Stock Company

TYPE OF COMPANY

:

Private

REGISTERED CAPITAL

:

TL   2.000.000

PAID-IN CAPITAL

:

TL   2.000.000

 

 

OWNERSHIP / MANAGEMENT

 

 

SHAREHOLDERS

:

Narin Holding A.S.

68 %

Mehmet Necdet Narin

16 %

Nilgun Sevil

4 %

Nursel Narin

4 %

Huseyin Cengiz Narin

4 %

Cem Narin

4 %

 

 

SISTER COMPANIES

:

NARIN HOLDING A.S.

 

BOARD OF DIRECTORS

:

Mehmet Necdet Narin

Chairman

Nilgun Sevil

Member

Cem Narin

Member

Huseyin Cengiz Narin

Member

OPERATIONS

 

 

BUSINESS ACTIVITIES

:

Manufacture and trade of home textile products.  The subject orders textile products to be dyed in the name of the subject company to contract manufacturers.

 

NACE CODE

:

DB.17.40

 

SECTOR

:

Textile

 

TRADEMARKS OWNED

:

Broderi Narin

 

NUMBER OF EMPLOYEES

:

38

 

NET SALES

:

5.489.972 TL

(2009) 

4.143.052 TL

(2010) 

4.033.417 TL

(2011) 

3.693.386 TL

(2012) 

 

 

IMPORT COUNTRIES

:

Italy

Germany

Taiwan

Switzerland

China

 

MERCHANDISE IMPORTED

:

Intermediary goods

Machinery

Yarn

 

 

EXPORT VALUE

:

2.175.759 TL

(2009)

899.812 TL

(2010)

763.450 TL

(2011)

1.247.970 TL

(2012)

 

 

EXPORT COUNTRIES

:

Belgium

U.S.A.

Bangladesh

Australia

Canada

Germany

 

MERCHANDISE  EXPORTED

:

Curtains

Fabric

Table linens

 

HEAD OFFICE ADDRESS

:

Mahmutbey Mah. Tasocagi Yolu Cad. No:16 Bagcilar  Istanbul / Turkey  (owned)

 

BRANCHES

:

Head Office/Production Plant  :  Mahmutbey Mah. Tasocagi Yolu Cad. No:16 Bagcilar Istanbul/Turkey (owned)

INVESTMENTS

:

None

 

 

TREND OF BUSINESS

:

There was a decline at business volume in nominal terms in 2012.

SIZE OF BUSINESS

:

Upper-Medium

 

 

FINANCE

 

 

MAIN DEALING BANKS

:

Akbank Bahcekapi Branch

Garanti Bankasi Yenibosna Branch

HSBC Bank Gunesli Branch

T. Is Bankasi Carsi Gunesli Branch

Yapi ve Kredi Bankasi Gunesli Branch

 

CREDIT FACILITIES

:

The subject company is making use of credit facilities.

 

PAYMENT BEHAVIOUR

:

No payment delays have come to our knowledge.

 

KEY FINANCIAL ELEMENTS

:

 

(2009) TL

(2010) TL

(2011) TL

(2012) TL

Net Sales

5.489.972

4.143.052

4.033.417

3.693.386

Profit (Loss) Before Tax

9.098

-1.480.057

-352.411

-1.190.465

Stockholders' Equity

4.563.720

3.083.663

2.731.250

 

Total Assets

9.123.363

7.642.550

7.900.520

 

Current Assets

7.993.284

6.554.724

6.896.449

 

Non-Current Assets

1.130.079

1.087.826

1.004.071

 

Current Liabilities

4.559.643

4.558.887

5.169.270

 

Long-Term Liabilities

0

0

0

 

Gross Profit (loss)

1.771.778

412.651

1.072.379

308.282

Operating Profit (loss)

364.750

-1.199.734

-115.956

-1.130.473

Net Profit (loss)

9.098

-1.480.057

-352.411

-1.190.465

 

 

COMMENT ON FINANCIAL POSITION

 

Capitalization

Insufficient

Remarks on Capitalization

The loss at the last period is expected to have a negative effect on equity total since the date of last stockholders’ equity.

Liquidity

Fair As of 31.12.2011

Remarks On Liquidity

The favorable gap between average collection and average payable period has a positive effect on liquidity. 

 

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

 

Profitability

Good Operating Profitability  in 2009

Low Net Profitability  in 2009

Operating Loss  in 2010

Net Loss  in 2010

Operating Loss  in 2011

Net Loss  in 2011

Operating Loss  in 2012

Net Loss  in 2012

 

Gap between average collection and payable periods

Favorable in 2011

General Financial Position

Not in order

 

 

 

Incr. in producers’ price index

 

Average USD/TL

Average EUR/TL

Average GBP/ TL

 ( 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

 ( 2012 )

2,45 %

1,7995

2,3265

2,8593

 ( 01.01-31.03.2013)

0,50 %

1,7901

2,3575

2,7927

 

 

BALANCE SHEETS

 

 

 ( 31.12.2009 )  TL

 

 ( 31.12.2010 )  TL

 

 ( 31.12.2011 )  TL

 

CURRENT ASSETS

7.993.284

0,88

6.554.724

0,86

6.896.449

0,87

Not Detailed Current Assets

0

0,00

0

0,00

0

0,00

Cash and Banks

81.519

0,01

13.383

0,00

56.364

0,01

Marketable Securities

0

0,00

0

0,00

0

0,00

Account Receivable

3.019.238

0,33

2.581.363

0,34

2.692.034

0,34

Other Receivable

208.972

0,02

136.740

0,02

135.583

0,02

Inventories

4.554.430

0,50

3.707.123

0,49

3.756.636

0,48

Advances Given

13.317

0,00

13.861

0,00

13.861

0,00

Accumulated Construction Expense

0

0,00

0

0,00

0

0,00

Other Current Assets

115.808

0,01

102.254

0,01

241.971

0,03

NON-CURRENT ASSETS

1.130.079

0,12

1.087.826

0,14

1.004.071

0,13

Not Detailed Non-Current Assets

0

0,00

0

0,00

0

0,00

Long-term Receivable

13.316

0,00

13.316

0,00

13.316

0,00

Financial Assets

0

0,00

0

0,00

0

0,00

Tangible Fixed Assets (net)

1.113.516

0,12

1.044.628

0,14

989.250

0,13

Intangible Assets

3.247

0,00

1.624

0,00

1.505

0,00

Deferred Tax Assets

0

0,00

0

0,00

0

0,00

Other Non-Current Assets

0

0,00

28.258

0,00

0

0,00

TOTAL ASSETS

9.123.363

1,00

7.642.550

1,00

7.900.520

1,00

CURRENT LIABILITIES

4.559.643

0,50

4.558.887

0,60

5.169.270

0,65

Not Detailed Current Liabilities

0

0,00

0

0,00

0

0,00

Financial Loans

834.191

0,09

393.838

0,05

442.411

0,06

Accounts Payable

3.621.000

0,40

3.944.497

0,52

4.507.349

0,57

Loans from Shareholders

0

0,00

0

0,00

0

0,00

Other Short-term Payable

47.792

0,01

45.786

0,01

34.106

0,00

Advances from Customers

8.323

0,00

132.974

0,02

145.913

0,02

Accumulated Construction Income

0

0,00

0

0,00

0

0,00

Taxes Payable

47.290

0,01

40.923

0,01

38.886

0,00

Provisions

0

0,00

0

0,00

-4

0,00

Other Current Liabilities

1.047

0,00

869

0,00

609

0,00

LONG-TERM LIABILITIES

0

0,00

0

0,00

0

0,00

Not Detailed Long-term Liabilities

0

0,00

0

0,00

0

0,00

Financial Loans

0

0,00

0

0,00

0

0,00

Securities Issued

0

0,00

0

0,00

0

0,00

Long-term Payable

0

0,00

0

0,00

0

0,00

Loans from Shareholders

0

0,00

0

0,00

0

0,00

Other Long-term Liabilities

0

0,00

0

0,00

0

0,00

Provisions

0

0,00

0

0,00

0

0,00

STOCKHOLDERS' EQUITY

4.563.720

0,50

3.083.663

0,40

2.731.250

0,35

Not Detailed Stockholders' Equity

0

0,00

0

0,00

0

0,00

Paid-in Capital

2.000.000

0,22

2.000.000

0,26

2.000.000

0,25

Cross Shareholding Adjustment of Capital

0

0,00

0

0,00

0

0,00

Inflation Adjustment of Capital

8.345.463

0,91

8.345.463

1,09

8.345.462

1,06

Equity of Consolidated Firms

0

0,00

0

0,00

0

0,00

Reserves

559.815

0,06

568.913

0,07

568.913

0,07

Revaluation Fund

0

0,00

0

0,00

0

0,00

Accumulated Losses(-)

-6.350.656

-0,70

-6.350.656

-0,83

-7.830.714

-0,99

Net Profit (loss)

9.098

0,00

-1.480.057

-0,19

-352.411

-0,04

TOTAL LIABILITIES AND EQUITY

9.123.363

1,00

7.642.550

1,00

7.900.520

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

 

 

(2009) TL

 

(2010) TL

 

(2011) TL

 

(2012) TL

 

Net Sales

5.489.972

1,00

4.143.052

1,00

4.033.417

1,00

3.693.386

1,00

Cost of Goods Sold

3.718.194

0,68

3.730.401

0,90

2.961.038

0,73

3.385.104

0,92

Gross Profit

1.771.778

0,32

412.651

0,10

1.072.379

0,27

308.282

0,08

Operating Expenses

1.407.028

0,26

1.612.385

0,39

1.188.335

0,29

1.438.755

0,39

Operating Profit

364.750

0,07

-1.199.734

-0,29

-115.956

-0,03

-1.130.473

-0,31

Other Income

160.352

0,03

268.866

0,06

118.219

0,03

278.166

0,08

Other Expenses

377.027

0,07

509.545

0,12

322.657

0,08

242.794

0,07

Financial Expenses

138.977

0,03

39.644

0,01

32.017

0,01

95.364

0,03

Minority Interests

0

0,00

0

0,00

0

0,00

0

0,00

Profit (loss) of consolidated firms

0

0,00

0

0,00

0

0,00

0

0,00

Profit (loss) Before Tax

9.098

0,00

-1.480.057

-0,36

-352.411

-0,09

-1.190.465

-0,32

Tax Payable

0

0,00

0

0,00

0

0,00

0

0,00

Postponed Tax Gain

0

0,00

0

0,00

0

0,00

0

0,00

Net Profit (loss)

9.098

0,00

-1.480.057

-0,36

-352.411

-0,09

-1.190.465

-0,32

 

 

FINANCIAL RATIOS

 

 

(2009)

(2010)

(2011)

LIQUIDITY RATIOS

 

 

Current Ratio

1,75

1,44

1,33

Acid-Test Ratio

0,73

0,60

0,56

Cash Ratio

0,02

0,00

0,01

ASSET STRUCTURE RATIOS

 

 

Inventory/Total Assets

0,50

0,49

0,48

Short-term Receivable/Total Assets

0,35

0,36

0,36

Tangible Assets/Total Assets

0,12

0,14

0,13

TURNOVER RATIOS

 

 

Inventory Turnover

0,82

1,01

0,79

Stockholders' Equity Turnover

1,20

1,34

1,48

Asset Turnover

0,60

0,54

0,51

FINANCIAL STRUCTURE

 

 

Stockholders' Equity/Total Assets

0,50

0,40

0,35

Current Liabilities/Total Assets

0,50

0,60

0,65

Financial Leverage

0,50

0,60

0,65

Gearing Percentage

1,00

1,48

1,89

PROFITABILITY RATIOS

 

 

Net Profit/Stockholders' Eq.

0,00

-0,48

-0,13

Operating Profit Margin

0,07

-0,29

-0,03

Net Profit Margin

0,00

-0,36

-0,09

Interest Cover

1,07

-36,33

-10,01

COLLECTION-PAYMENT

 

 

Average Collection Period (days)

198,86

225,46

241,46

Average Payable Period (days)

350,59

380,66

548,00

WORKING CAPITAL

3433641,00

1995837,00

1727179,00

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.53

UK Pound

1

Rs.83.59

Euro

1

Rs.71.33

 

 

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.