MIRA INFORM REPORT

Report Date :

06.03.2013

IDENTIFICATION DETAILS

Name :	FLAMENT TEKSTIL SANAYI VE TICARET A.S.

Registered Office :	2. Organize Sanayi Bolgesi Dursun Bak Bulvari No:12 27120 Baspinar Gaziantep

Country :	Turkey

Financials (as on) :	31.12.2012

Date of Incorporation :	24.02.2000

Com. Reg. No.:	21927

Legal Form :	Joint Stock Company

Line of Business :	Manufacture and trade of polypropylene yarn.

No. of Employees :	240

RATING & COMMENTS

MIRA’s Rating :

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 – June 30^th, 2012

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Turkey

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	:	FLAMENT TEKSTIL SANAYI VE TICARET A.S.
HEAD OFFICE ADDRESS	:	2. Organize Sanayi Bolgesi Dursun Bak Bulvari No:12 27120 Baspinar Gaziantep / Turkey
REMARKS ON HEAD OFFICE ADDRESS	:	The address was changed from "Sireci Tekstil Fabrikasi Karsisi No:7" to "Dursun Bak Bulvari No:12 " by the municipality.
PHONE NUMBER	:	90-342-337 44 80 (3 lines)
FAX NUMBER	:	90-342-337 44 82
WEB-ADDRESS	:	www.flament.com.tr
E-MAIL	:	flament@flament.com.tr

LEGAL STATUS AND HISTORY


TAX OFFICE	:	Gazikent
TAX NO	:	3880201424
REGISTRATION NUMBER	:	21927
REGISTERED OFFICE	:	Gaziantep Chamber of Commerce
DATE ESTABLISHED	:	24.02.2000
ESTABLISHMENT GAZETTE DATE /NO	:	13.03.2000/5002
LEGAL FORM	:	Joint Stock Company
TYPE OF COMPANY	:	Private

REGISTERED CAPITAL

TL 20.000.000

PAID-IN CAPITAL

TL 19.634.996

HISTORY

Previous Registered Capital	:	TL 10.000.000
Changed On	:	03.09.2009 (Commercial Gazette Date /Number 16.09.2009/ 7399)
Previous Registered Capital	:	TL 16.000.000
Changed On	:	28.05.2010 (Commercial Gazette Date /Number 14.06.2010/ 7584)
Previous Registered Capital	:	TL 16.200.000
Changed On	:	28.12.2011 (Commercial Gazette Date /Number 06.01.2012/ 7978)

OWNERSHIP / MANAGEMENT

SHAREHOLDERS

Ihsan Ozkececi	33 %
Metin Ozkececi	33 %
Mesut Ozkececi	32 %
Murat Ozkececi	1 %
Demet Ozkececi	1 %

SISTER COMPANIES

OZKECECI AYAKKABICILIK SANAYI VE TICARET A.S.

BOARD OF DIRECTORS

Metin Ozkececi	Chairman
Ihsan Ozkececi	Member
Mesut Ozkececi	Member

OPERATIONS

BUSINESS ACTIVITIES

Manufacture and trade of polypropylene yarn.

NACE CODE

DB.17.10

SECTOR

Textile

NUMBER OF EMPLOYEES

240

NET SALES

31.430.013 TL	(2009)
36.764.668 TL	(2010)
49.999.541 TL	(2011)
68.907.878 TL	(2012)

CAPACITY

( kgs/yr)
5.738.456			(2012)
5.738.456			(2013)

IMPORT VALUE

16.494.875 USD	(2010)
19.328.000 USD	(2011)
21.870.601 USD	(2012)

IMPORT COUNTRIES

Israel

Germany

Greece

France

Ukraine

Spain

Iran

Egypt

Saudi Arabia

Kuwait

MERCHANDISE IMPORTED

Raw polypropylene

EXPORT VALUE

6.868.002 TL	(2009)
13.227.691 TL	(2010)
20.495.842 TL	(2011)
20.162.230 TL	(2012)

EXPORT COUNTRIES

Serbia

Free Zone

Uzbekistan

Brazil

Russia

Romania

Poland

Belgium

Saudi Arabia

Jordan

U.S.A.

India

Pakistan

Egypt

Libya

Bulgaria

Moldova

Finland

MERCHANDISE EXPORTED

Polypropylene yarn

HEAD OFFICE ADDRESS

2. Organize Sanayi Bolgesi Dursun Bak Bulvari No:12 27120 Baspinar Gaziantep / Turkey (owned by shareholder(s))

BRANCHES

Factory : 2. Organize Sanayi Bolgesi Dursun Bak Bulvari No:10 27120 Baspinar Gaziantep/Turkey (9.500 sqm)

Head Office/Factory : 2. Organize Sanayi Bolgesi Dursun Bak Bulvari No:12 27120 Baspinar Gaziantep/Turkey (owned by shareholder(s)) (9.100 sqm)

TREND OF BUSINESS	:	There was an upwards trend in 2012.
SIZE OF BUSINESS	:	Giant

FINANCE

MAIN DEALING BANKS

Garanti Bankasi Gaziantep Ticari Branch

T. Halk Bankasi Organize Sanayi Bolgesi Branch

T. Is Bankasi Kurumsal Branch

T. Vakiflar Bankasi Binevler Branch

Yapi ve Kredi Bankasi Gaziantep 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

	(2010) TL	(2011) TL	(2012) TL
Net Sales	36.764.668	49.999.541	68.907.878
Profit (Loss) Before Tax	1.953.507	2.594.584	5.969.829
Stockholders' Equity	16.173.390	22.328.657	27.405.927
Total Assets	41.534.501	59.167.222	100.068.001
Current Assets	24.782.945	38.665.595	59.788.022
Non-Current Assets	16.751.556	20.501.627	40.279.979
Current Liabilities	19.678.965	33.192.477	53.127.628
Long-Term Liabilities	5.682.146	3.646.088	19.534.446
Gross Profit (loss)	4.118.736	5.895.503	9.840.693
Operating Profit (loss)	2.714.224	4.176.511	7.912.536
Net Profit (loss)	1.551.159	2.064.753	5.071.751

COMMENT ON FINANCIAL POSITION

Capitalization	Insufficient As of 31.12.2012
Liquidity	Insufficient As of 31.12.2012
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	Good Operating Profitability in 2010 Good Net Profitability in 2010 Good Operating Profitability in 2011 Good Net Profitability in 2011 High Operating Profitability in 2012 High Net Profitability in 2012
Gap between average collection and payable periods	Unfavorable in 2012
General Financial Position	Passable

	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
( 01.01-31.01.2013)	-0,18 %	1,7748	2,3734	2,8382

BALANCE SHEETS

	( 31.12.2010 ) TL		( 31.12.2011 ) TL		( 31.12.2012 ) TL
CURRENT ASSETS	24.782.945	0,60	38.665.595	0,65	59.788.022	0,60
Not Detailed Current Assets	0	0,00	0	0,00	0	0,00
Cash and Banks	722.997	0,02	2.858.466	0,05	992.561	0,01
Marketable Securities	0	0,00	0	0,00	0	0,00
Account Receivable	19.957.227	0,48	31.621.549	0,53	47.274.708	0,47
Other Receivable	606.321	0,01	533.274	0,01	1.558.391	0,02
Inventories	2.806.396	0,07	3.491.883	0,06	7.516.618	0,08
Advances Given	90.895	0,00	58.855	0,00	235.546	0,00
Accumulated Construction Expense	0	0,00	0	0,00	0	0,00
Other Current Assets	599.109	0,01	101.568	0,00	2.210.198	0,02
NON-CURRENT ASSETS	16.751.556	0,40	20.501.627	0,35	40.279.979	0,40
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	7.204.465	0,07
Tangible Fixed Assets (net)	16.531.210	0,40	20.371.285	0,34	33.009.804	0,33
Intangible Assets	174.250	0,00	50.262	0,00	65.710	0,00
Deferred Tax Assets	0	0,00	0	0,00	0	0,00
Other Non-Current Assets	46.096	0,00	80.080	0,00	0	0,00
TOTAL ASSETS	41.534.501	1,00	59.167.222	1,00	100.068.001	1,00
CURRENT LIABILITIES	19.678.965	0,47	33.192.477	0,56	53.127.628	0,53
Not Detailed Current Liabilities	0	0,00	0	0,00	0	0,00
Financial Loans	2.300.181	0,06	5.821.660	0,10	19.393.898	0,19
Accounts Payable	16.529.715	0,40	25.375.798	0,43	30.317.262	0,30
Loans from Shareholders	0	0,00	0	0,00	0	0,00
Other Short-term Payable	94.759	0,00	108.393	0,00	174.875	0,00
Advances from Customers	675.212	0,02	1.543.815	0,03	3.030.947	0,03
Accumulated Construction Income	0	0,00	0	0,00	0	0,00
Taxes Payable	51.320	0,00	95.976	0,00	100.211	0,00
Provisions	27.778	0,00	246.835	0,00	0	0,00
Other Current Liabilities	0	0,00	0	0,00	110.435	0,00
LONG-TERM LIABILITIES	5.682.146	0,14	3.646.088	0,06	19.534.446	0,20
Not Detailed Long-term Liabilities	0	0,00	0	0,00	0	0,00
Financial Loans	5.682.146	0,14	3.111.265	0,05	11.832.090	0,12
Securities Issued	0	0,00	0	0,00	0	0,00
Long-term Payable	0	0,00	534.823	0,01	7.702.356	0,08
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	16.173.390	0,39	22.328.657	0,38	27.405.927	0,27
Not Detailed Stockholders' Equity	0	0,00	0	0,00	0	0,00
Paid-in Capital	13.472.706	0,32	19.376.096	0,33	19.634.996	0,20
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	1.149.525	0,03	887.808	0,02	2.699.180	0,03
Revaluation Fund	0	0,00	0	0,00	0	0,00
Accumulated Losses(-)	0	0,00	0	0,00	0	0,00
Net Profit (loss)	1.551.159	0,04	2.064.753	0,03	5.071.751	0,05
TOTAL LIABILITIES AND EQUITY	41.534.501	1,00	59.167.222	1,00	100.068.001	1,00

REMARKS ON FINANCIAL STATEMENT

The financial statements of 2012 have not become certain yet.

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 3.694.431 of the other income is due to "Profit from Foreign Currency Exchange".

At the last income statement TL 3.437.662 of the other expenses is due to "Loss from Foreign Currency Exchange".

INCOME STATEMENTS

	(2010) TL		(2011) TL		(2012) TL
Net Sales	36.764.668	1,00	49.999.541	1,00	68.907.878	1,00
Cost of Goods Sold	32.645.932	0,89	44.104.038	0,88	59.067.185	0,86
Gross Profit	4.118.736	0,11	5.895.503	0,12	9.840.693	0,14
Operating Expenses	1.404.512	0,04	1.718.992	0,03	1.928.157	0,03
Operating Profit	2.714.224	0,07	4.176.511	0,08	7.912.536	0,11
Other Income	4.114.973	0,11	6.223.721	0,12	4.156.738	0,06
Other Expenses	4.316.183	0,12	7.223.100	0,14	5.351.409	0,08
Financial Expenses	559.507	0,02	582.548	0,01	748.036	0,01
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	1.953.507	0,05	2.594.584	0,05	5.969.829	0,09
Tax Payable	402.348	0,01	529.831	0,01	898.078	0,01
Postponed Tax Gain	0	0,00	0	0,00	0	0,00
Net Profit (loss)	1.551.159	0,04	2.064.753	0,04	5.071.751	0,07

FINANCIAL RATIOS

	(2010)	(2011)	(2012)
LIQUIDITY RATIOS
Current Ratio	1,26	1,16	1,13
Acid-Test Ratio	1,08	1,05	0,94
Cash Ratio	0,04	0,09	0,02
ASSET STRUCTURE RATIOS
Inventory/Total Assets	0,07	0,06	0,08
Short-term Receivable/Total Assets	0,50	0,54	0,49
Tangible Assets/Total Assets	0,40	0,34	0,33
TURNOVER RATIOS
Inventory Turnover	11,63	12,63	7,86
Stockholders' Equity Turnover	2,27	2,24	2,51
Asset Turnover	0,89	0,85	0,69
FINANCIAL STRUCTURE
Stockholders' Equity/Total Assets	0,39	0,38	0,27
Current Liabilities/Total Assets	0,47	0,56	0,53
Financial Leverage	0,61	0,62	0,73
Gearing Percentage	1,57	1,65	2,65
PROFITABILITY RATIOS
Net Profit/Stockholders' Eq.	0,10	0,09	0,19
Operating Profit Margin	0,07	0,08	0,11
Net Profit Margin	0,04	0,04	0,07
Interest Cover	4,49	5,45	8,98
COLLECTION-PAYMENT
Average Collection Period (days)	195,42	227,68	246,98
Average Payable Period (days)	182,28	211,50	231,72
WORKING CAPITAL	5103980,00	5473118,00	6660394,00

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.65
UK Pound	1	Rs.82.66
Euro	1	Rs.71.21

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.