MIRA INFORM REPORT

Report Date :

26.03.2013

IDENTIFICATION DETAILS

Name :	RUSEN SEVER-ARSLAN TEKSTIL MAKINE SANAYI

Registered Office :	Yeni Yalova Yolu Buttim Is Merkezi B Blok K: 4 No: 1111 Bursa

Country :	Turkey

Financials (as on) :	31.12.2012

Date of Incorporation :	22.04.2011

Com. Reg. No.:	75052

Legal Form :	Sole-Proprietorship

Line of Business :	Wholesale trade of textile machinery.

No. of Employees :	1

RATING & COMMENTS

MIRA’s Rating :

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 :	Unknown
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

REPORT ON

RUSEN SEVER-ARSLAN TEKSTIL MAKINE SANAYI

REMARKS

Full name of the firm was missing at your inquiry. The registered full name of the firm at your inquiry is "RUSEN SEVER-ARSLAN TEKSTIL MAKINE SANAYI" as a sole-proprietorship. The address stated at your inquiry as Vatan Mah. Kenar Sok. No:24 A Yildirim Bursa is the former address of RUSEN SEVER-ARSLAN TEKSTIL MAKINE SANAYI.

NOTES

Full name of the firm was missing at your inquiry.

Address at your inquiry is the former address.

COMPANY IDENTIFICATION


NAME	:	RUSEN SEVER-ARSLAN TEKSTIL MAKINE SANAYI
HEAD OFFICE ADDRESS	:	Yeni Yalova Yolu Buttim Is Merkezi B Blok K: 4 No: 1111 Bursa / Turkey
PHONE NUMBER	:	90-507-333 73 27

LEGAL STATUS AND HISTORY


NOTES ON LEGAL STATUS AND HISTORY	:	Liability of the subject is not limited to the capital.
TAX OFFICE	:	Uludag
TAX NO	:	16112242368
REGISTRATION NUMBER	:	75052
REGISTERED OFFICE	:	Bursa Chamber of Commerce and Industry

DATE ESTABLISHED	:	22.04.2011
ESTABLISHMENT GAZETTE DATE/NO	:	03.05.2011/7807
LEGAL FORM	:	Sole-Proprietorship
TYPE OF COMPANY	:	Private

OWNERSHIP / MANAGEMENT

SHAREHOLDERS

Rusen Sever	100 %

PROPERTIES OWNED BY THE OWNER/PARTNERS

Property Type

The head office of the subject

DIRECTORS

Rusen Sever

OPERATIONS

BUSINESS ACTIVITIES

Wholesale trade of textile machinery.

NACE CODE

G .51.83

SECTOR

Commerce

NUMBER OF EMPLOYEES

NET SALES

144.461 TL	(22.04-31.12.2011)
49.191 TL	(2012)

CAPACITY

None

PRODUCTION

None

IMPORT COUNTRIES

European Countries

Far East Countries

MERCHANDISE IMPORTED

Textile machinery

EXPORT VALUE

135.822 TL	(22.04-31.12.2011)
48.684 TL	(2012)

EXPORT COUNTRIES

India

Pakistan

Egypt

MERCHANDISE EXPORTED

Textile machinery

HEAD OFFICE ADDRESS

Yeni Yalova Yolu Buttim Is Merkezi B Blok K: 4 No: 1111 Bursa / Turkey

SIZE OF BUSINESS

Small

FINANCE

CREDIT FACILITIES

No credit facility has come to our knowledge.

KEY FINANCIAL ELEMENTS

	(22.04-31.12.2011) TL	(2012) TL
Net Sales	144.461	49.191
Profit (Loss) Before Tax	36.928	-6.070
Stockholders' Equity	38.524	44.953
Total Assets	190.701	99.733
Current Assets	169.000	16.789
Non-Current Assets	21.701	82.944
Current Liabilities	152.177	54.780
Long-Term Liabilities	0	0
Gross Profit (loss)	37.222	34.591
Operating Profit (loss)	16.678	-15.802
Net Profit (loss)	31.023	-6.070

COMMENT ON FINANCIAL POSITION

Capitalization	Good As of 31.12.2012
Remarks on Capitalization	The liability of the sole-proprietorships is not limited to the capital. The owners of the sole-proprietorships are responsible for the debts of the sole-proprietorships with all of their personal wealth. The owner possesses property.
Liquidity	Low As of 31.12.2012
Remarks On Liquidity	The favorable gap between average collection and average payable period has a positive effect on liquidity.
Profitability	High Operating Profitability (22.04-31.12.2011) High Net Profitability (22.04-31.12.2011) Operating Loss in 2012 Net Loss in 2012
Gap between average collection and payable periods	Favorable in 2012
General Financial Position	Unsatisfactory

	Incr. in producers’ price index	Average USD/TL	Average EUR/TL	Average GBP/ TL
( 2011 )	13,33 %	1,6797	2,3378	2,6863
( 2012 )	2,45 %	1,7995	2,3265	2,8593
( 01.01-28.02.2013)	-0,31 %	1,7828	2,3690	2,8041

BALANCE SHEETS

	( 31.12.2011 ) TL		( 31.12.2012 ) TL
CURRENT ASSETS	169.000	0,89	16.789	0,17
Not Detailed Current Assets	0	0,00	0	0,00
Cash and Banks	42.521	0,22	367	0,00
Marketable Securities	0	0,00	0	0,00
Account Receivable	116.037	0,61	2.648	0,03
Other Receivable	0	0,00	0	0,00
Inventories	0	0,00	0	0,00
Advances Given	0	0,00	0	0,00
Accumulated Construction Expense	0	0,00	0	0,00
Other Current Assets	10.442	0,05	13.774	0,14
NON-CURRENT ASSETS	21.701	0,11	82.944	0,83
Not Detailed Non-Current Assets	0	0,00	0	0,00
Long-term Receivable	0	0,00	0	0,00
Financial Assets	0	0,00	0	0,00
Tangible Fixed Assets (net)	21.558	0,11	77.569	0,78
Intangible Assets	0	0,00	5.375	0,05
Deferred Tax Assets	0	0,00	0	0,00
Other Non-Current Assets	143	0,00	0	0,00
TOTAL ASSETS	190.701	1,00	99.733	1,00
CURRENT LIABILITIES	152.177	0,80	54.780	0,55
Not Detailed Current Liabilities	0	0,00	0	0,00
Financial Loans	0	0,00	0	0,00
Accounts Payable	141.775	0,74	38.552	0,39
Loans from Shareholders	0	0,00	0	0,00
Other Short-term Payable	0	0,00	0	0,00
Advances from Customers	0	0,00	0	0,00
Accumulated Construction Income	0	0,00	0	0,00
Taxes Payable	4.497	0,02	16.228	0,16
Provisions	5.905	0,03	0	0,00
Other Current Liabilities	0	0,00	0	0,00
LONG-TERM LIABILITIES	0	0,00	0	0,00
Not Detailed Long-term Liabilities	0	0,00	0	0,00
Financial Loans	0	0,00	0	0,00
Securities Issued	0	0,00	0	0,00
Long-term Payable	0	0,00	0	0,00
Loans from Shareholders	0	0,00	0	0,00
Other Long-term Liabilities	0	0,00	0	0,00
Provisions	0	0,00	0	0,00
STOCKHOLDERS' EQUITY	38.524	0,20	44.953	0,45
Not Detailed Stockholders' Equity	38.524	0,20	44.953	0,45
Paid-in Capital	0	0,00	0	0,00
Cross Shareholding Adjustment of Capital	0	0,00	0	0,00
Inflation Adjustment of Capital	0	0,00	0	0,00
Equity of Consolidated Firms	0	0,00	0	0,00
Reserves	0	0,00	0	0,00
Revaluation Fund	0	0,00	0	0,00
Accumulated Losses(-)	0	0,00	0	0,00
Net Profit (loss)	0	0,00	0	0,00
TOTAL LIABILITIES AND EQUITY	190.701	1,00	99.733	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 11.390 of the other income is due to "Commission Income". At the last income statement TL 1.658 of the other expenses is due to "Other Extraordinary Expenses and Losses" .

INCOME STATEMENTS

	(22.04-31.12.2011) TL		(2012) TL
Net Sales	144.461	1,00	49.191	1,00
Cost of Goods Sold	107.239	0,74	14.600	0,30
Gross Profit	37.222	0,26	34.591	0,70
Operating Expenses	20.544	0,14	50.393	1,02
Operating Profit	16.678	0,12	-15.802	-0,32
Other Income	20.250	0,14	11.390	0,23
Other Expenses	0	0,00	1.658	0,03
Financial Expenses	0	0,00	0	0,00
Minority Interests	0	0,00	0	0,00
Profit (loss) of consolidated firms	0	0,00	0	0,00
Profit (loss) Before Tax	36.928	0,26	-6.070	-0,12
Tax Payable	5.905	0,04	0	0,00
Postponed Tax Gain	0	0,00	0	0,00
Net Profit (loss)	31.023	0,21	-6.070	-0,12

FINANCIAL RATIOS

	(22.04-31.12.2011)	(2012)
LIQUIDITY RATIOS
Current Ratio	1,11	0,31
Acid-Test Ratio	1,04	0,06
Cash Ratio	0,28	0,01
ASSET STRUCTURE RATIOS
Inventory/Total Assets	0,00	0,00
Short-term Receivable/Total Assets	0,61	0,03
Tangible Assets/Total Assets	0,11	0,78
TURNOVER RATIOS
Inventory Turnover
Stockholders' Equity Turnover	3,75	1,09
Asset Turnover	0,76	0,49
FINANCIAL STRUCTURE
Stockholders' Equity/Total Assets	0,20	0,45
Current Liabilities/Total Assets	0,80	0,55
Financial Leverage	0,80	0,55
Gearing Percentage	3,95	1,22
PROFITABILITY RATIOS
Net Profit/Stockholders' Eq.	0,81	-0,14
Operating Profit Margin	0,12	-0,32
Net Profit Margin	0,21	-0,12
Interest Cover
COLLECTION-PAYMENT
Average Collection Period (days)	289,17	19,38
Average Payable Period (days)	475,94	950,60
WORKING CAPITAL	16823,00	-37991,00

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.10
UK Pound	1	Rs.82.46
Euro	1	Rs.70.49

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.