MIRA INFORM REPORT

 

 

Report Date :

27.04.2013

 

IDENTIFICATION DETAILS

 

Name :

ERKENCE YAG VE SABUN SANAYI TICARET LTD. STI.

 

 

Formerly Known As :

ERKENCE GIDA TEMIZLIK MADDELERI VE TARIM URUNLERI SANAYI VE TICARET LTD. STI.

 

 

Registered Office :

Tire Organize Sanayi Bolgesi 6 Sok. No:5 Tire Izmir

 

 

Country :

Turkey

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

11.01.2008

 

 

Com. Reg. No.:

2822

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacture and trade of olive oil and olive pomace oil.

 

 

No. of Employees :

8

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Turkey

B2

B2

 

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 9.2% in 2010, as exports returned to normal levels following the recession. Growth dropped to approximately 3% in 2012. Turkey's public sector debt to GDP ratio has fallen to about 40%, and at least one rating agency upgraded Turkey's debt to investment grade in 2012. Turkey remains dependent on often volatile, short-term investment to finance its large trade deficit. The stock value of FDI stood at $117 billion at year-end 2012. Inflows have slowed because of continuing economic turmoil in Europe, the source of much of Turkey's FDI. 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

:

ERKENCE YAG VE SABUN SANAYI TICARET LTD. STI.

HEAD OFFICE ADDRESS

:

Tire Organize Sanayi Bolgesi 6 Sok. No:5 Tire Izmir / Turkey

PHONE NUMBER

:

90-232-513 51 23

 

FAX NUMBER

:

90-232-513 51 24

 

WEB-ADDRESS

:

www.erkence.com.tr

E-MAIL

:

info@erkence.com

 

 

LEGAL STATUS AND HISTORY

 

 

NOTES ON LEGAL STATUS AND HISTORY

:

Change at registration no.

 

 

TAX OFFICE

:

Tire

TAX NO

:

3620269089

REGISTRATION NUMBER

:

2822

REGISTERED OFFICE

:

Tire Chamber of Commerce

DATE ESTABLISHED

:

11.01.2008

ESTABLISHMENT GAZETTE DATE/NO

:

21.01.2008/6981

LEGAL FORM

:

Limited Company

TYPE OF COMPANY

:

Private

 

REGISTERED CAPITAL

:

TL   1.000.000

HISTORY

:

Previous Name

:

Erkence Gida Temizlik Maddeleri ve Tarim Urunleri Sanayi ve Ticaret Ltd. Sti.

Changed On

:

06.04.2009 (Commercial Gazette Date /Number 28.04.2009/ 7300)

Previous Registered Capital

:

TL 50.000

Changed On

:

06.04.2009 (Commercial Gazette Date /Number 28.04.2009/ 7300)

Previous Address

:

1404 Sok. No:17 Daire:1 Kahramanlar Izmir

Changed On

:

06.04.2009 (Commercial Gazette Date /Number 28.04.2009/ 7300)

Other Changes

:

The subject was firstly registered at Izmir Commercial Registry with registration number: 136077. Then the subject moved from 1404 Sok. No:17 Daire:1 Kahramanlar Izmir to Tire Organize Sanayi Bolgesi 6 Sok. No:5 Tire  Izmir and registered at Tire Commercial Registry with registration number: 2822.

Changed On

:

06.04.2009 (Commercial Gazette Date /Number 28.04.2009/ 7300)

 

 

OWNERSHIP / MANAGEMENT

 

 

SHAREHOLDERS

:

Hilmi Cetin Aydinok

99 %

Ahmet Aydinok

1 %

SUBSIDIARIES

:

None

 

DIRECTORS

:

Cem Aydin

 

Sevinc Aydinok

 

Hilmi Cetin Aydinok

 

 

 

OPERATIONS

 

 

BUSINESS ACTIVITIES

:

Manufacture and trade of olive oil and olive pomace oil.

 

NACE CODE

:

DA.15.42

 

NUMBER OF EMPLOYEES

:

8

 

NET SALES

:

388.043 TL

(2009) 

512.634 TL

(2010) 

396.638 TL

(2011) 

1.331.064 TL

(2012) 

 

IMPORT VALUE

:

0 TL

(2010)

0 TL

(2011)

 

 

EXPORT VALUE

:

0 TL

(2010)

0 TL

(2011)

 

 

HEAD OFFICE ADDRESS

:

Tire Organize Sanayi Bolgesi 6 Sok. No:5 Tire  Izmir / Turkey  (owned)

 

BRANCHES

:

Head Office/Production Plant  :  Tire Organize Sanayi Bolgesi 6 Sok. No:5 Tire Izmir/Turkey (owned)

 

TREND OF BUSINESS

:

There was an upwards trend in 2012.

SIZE OF BUSINESS

:

Lower-Moderate

 

FINANCE

 

 

MAIN DEALING BANKS

:

HSBC Bank Bornova Branch

 

CREDIT FACILITIES

:

No credit facility has come to our knowledge.

 

PAYMENT BEHAVIOUR

:

No payment delays have come to our knowledge in the last years.

 

KEY FINANCIAL ELEMENTS

:

 

(2009) TL

(2010) TL

(2011) TL

(2012) TL

Net Sales

388.043

512.634

396.638

1.331.064

Profit (Loss) Before Tax

17.528

7.772

-239.463

8.450

Stockholders' Equity

285.991

314.877

593.624

 

Total Assets

1.102.845

1.450.088

1.382.106

 

Current Assets

593.143

919.419

721.861

 

Non-Current Assets

509.702

530.669

660.245

 

Current Liabilities

478.816

811.628

611.510

 

Long-Term Liabilities

338.038

323.583

176.972

 

Gross Profit (loss)

61.466

28.264

23.576

62.107

Operating Profit (loss)

18.688

9.317

5.922

22.504

Net Profit (loss)

17.528

5.865

-240.755

8.450

 

 

COMMENT ON FINANCIAL POSITION

 

Capitalization

In Order As of 31.12.2011

Remarks on Capitalization

A part of total liabilities and equity consist of loans from shareholders rather than liabilities to third parties indicating not too high indebtedness to third parties.

 

Liquidity

Low As of 31.12.2011

Remarks On Liquidity

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

 

Profitability

In Order Operating Profitability  in 2009

Good Net Profitability  in 2009

Fair Operating Profitability  in 2010

Low Net Profitability  in 2010

Low Operating Profitability  in 2011

Net Loss  in 2011

Fair Operating Profitability  in 2012

Low Net Profitability  in 2012

 

Gap between average collection and payable periods

Favorable in 2011

General Financial Position

Unsatisfactory

 

 

 

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

593.143

0,54

919.419

0,63

721.861

0,52

Not Detailed Current Assets

0

0,00

0

0,00

0

0,00

Cash and Banks

12.338

0,01

8.507

0,01

6.444

0,00

Marketable Securities

0

0,00

0

0,00

0

0,00

Account Receivable

149.457

0,14

54.865

0,04

873

0,00

Other Receivable

0

0,00

0

0,00

35.000

0,03

Inventories

156.558

0,14

363.345

0,25

331.432

0,24

Advances Given

202.509

0,18

404.838

0,28

246.947

0,18

Accumulated Construction Expense

0

0,00

0

0,00

0

0,00

Other Current Assets

72.281

0,07

87.864

0,06

101.165

0,07

NON-CURRENT ASSETS

509.702

0,46

530.669

0,37

660.245

0,48

Not Detailed Non-Current Assets

0

0,00

0

0,00

0

0,00

Long-term Receivable

0

0,00

0

0,00

0

0,00

Financial Assets

0

0,00

0

0,00

0

0,00

Tangible Fixed Assets (net)

508.105

0,46

520.889

0,36

658.598

0,48

Intangible Assets

1.459

0,00

1.459

0,00

1.459

0,00

Deferred Tax Assets

0

0,00

0

0,00

0

0,00

Other Non-Current Assets

138

0,00

8.321

0,01

188

0,00

TOTAL ASSETS

1.102.845

1,00

1.450.088

1,00

1.382.106

1,00

CURRENT LIABILITIES

478.816

0,43

811.628

0,56

611.510

0,44

Not Detailed Current Liabilities

0

0,00

0

0,00

0

0,00

Financial Loans

0

0,00

0

0,00

0

0,00

Accounts Payable

285.291

0,26

721.876

0,50

605.471

0,44

Loans from Shareholders

1.000

0,00

0

0,00

0

0,00

Other Short-term Payable

2.428

0,00

2.881

0,00

3.145

0,00

Advances from Customers

174.500

0,16

54.900

0,04

0

0,00

Accumulated Construction Income

0

0,00

0

0,00

0

0,00

Taxes Payable

15.597

0,01

30.063

0,02

2.894

0,00

Provisions

0

0,00

1.908

0,00

0

0,00

Other Current Liabilities

0

0,00

0

0,00

0

0,00

LONG-TERM LIABILITIES

338.038

0,31

323.583

0,22

176.972

0,13

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

5.410

0,00

Loans from Shareholders

338.038

0,31

149.083

0,10

171.562

0,12

Other Long-term Liabilities

0

0,00

174.500

0,12

0

0,00

Provisions

0

0,00

0

0,00

0

0,00

STOCKHOLDERS' EQUITY

285.991

0,26

314.877

0,22

593.624

0,43

Not Detailed Stockholders' Equity

0

0,00

0

0,00

0

0,00

Paid-in Capital

287.500

0,26

310.520

0,21

829.920

0,60

Cross Shareholding Adjustment of Capital

0

0,00

0

0,00

0

0,00

Inflation Adjustment of Capital

0

0,00

0

0,00

0

0,00

Equity of Consolidated Firms

0

0,00

0

0,00

0

0,00

Reserves

0

0,00

0

0,00

5.865

0,00

Revaluation Fund

0

0,00

0

0,00

0

0,00

Accumulated Losses(-)

-19.037

-0,02

-1.508

0,00

-1.406

0,00

Net Profit (loss)

17.528

0,02

5.865

0,00

-240.755

-0,17

TOTAL LIABILITIES AND EQUITY

1.102.845

1,00

1.450.088

1,00

1.382.106

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

388.043

1,00

512.634

1,00

396.638

1,00

1.331.064

1,00

Cost of Goods Sold

326.577

0,84

484.370

0,94

373.062

0,94

1.268.957

0,95

Gross Profit

61.466

0,16

28.264

0,06

23.576

0,06

62.107

0,05

Operating Expenses

42.778

0,11

18.947

0,04

17.654

0,04

39.603

0,03

Operating Profit

18.688

0,05

9.317

0,02

5.922

0,01

22.504

0,02

Other Income

3.695

0,01

221

0,00

536

0,00

144

0,00

Other Expenses

4.855

0,01

1.766

0,00

245.921

0,62

13.525

0,01

Financial Expenses

0

0,00

0

0,00

0

0,00

673

0,00

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

17.528

0,05

7.772

0,02

-239.463

-0,60

8.450

0,01

Tax Payable

0

0,00

1.907

0,00

1.292

0,00

0

0,00

Postponed Tax Gain

0

0,00

0

0,00

0

0,00

0

0,00

Net Profit (loss)

17.528

0,05

5.865

0,01

-240.755

-0,61

8.450

0,01

 

 

FINANCIAL RATIOS

 

 

(2009)

(2010)

(2011)

LIQUIDITY RATIOS

 

 

Current Ratio

1,24

1,13

1,18

Acid-Test Ratio

0,34

0,08

0,07

Cash Ratio

0,03

0,01

0,01

ASSET STRUCTURE RATIOS

 

 

Inventory/Total Assets

0,14

0,25

0,24

Short-term Receivable/Total Assets

0,14

0,04

0,03

Tangible Assets/Total Assets

0,46

0,36

0,48

TURNOVER RATIOS

 

 

Inventory Turnover

2,09

1,33

1,13

Stockholders' Equity Turnover

1,36

1,63

0,67

Asset Turnover

0,35

0,35

0,29

FINANCIAL STRUCTURE

 

 

Stockholders' Equity/Total Assets

0,26

0,22

0,43

Current Liabilities/Total Assets

0,43

0,56

0,44

Financial Leverage

0,74

0,78

0,57

Gearing Percentage

2,86

3,61

1,33

PROFITABILITY RATIOS

 

 

Net Profit/Stockholders' Eq.

0,06

0,02

-0,41

Operating Profit Margin

0,05

0,02

0,01

Net Profit Margin

0,05

0,01

-0,61

Interest Cover

 

 

 

COLLECTION-PAYMENT

 

 

Average Collection Period (days)

138,66

38,53

0,79

Average Payable Period (days)

314,49

536,52

589,49

WORKING CAPITAL

114327,00

107791,00

110351,00

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.29

UK Pound

1

Rs.83.88

Euro

1

Rs.70.67

 

 

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.