MIRA INFORM REPORT

Report Date :

04.02.2014

IDENTIFICATION DETAILS

Name :	ZOREL TEKSTIL IMALAT PAZARLAMA SANAYI VE TICARET LTD. STI.
Registered Office :	Barbaros Mah. Mehmet Emin Durul Cad. No:38 Merkez Denizli
Country :	Turkey
Financials (as on) :	31.12.2012
Date of Incorporation :	28.03.1989
Com. Reg. No.:	9722
Legal Form :	Limited Company
Line of Business :	Manufacturer and Trader of towels and bathrobes.
No. of Employees :	109

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 – december 01, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
Turkey	B2	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 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	:	ZOREL TEKSTIL IMALAT PAZARLAMA SANAYI VE TICARET LTD. STI.
HEAD OFFICE ADDRESS	:	Barbaros Mah. Mehmet Emin Durul Cad. No:38 Merkez Denizli / Turkey
PHONE NUMBER	:	90-258-385 72 07
FAX NUMBER	:	90-258-385 70 26
WEB-ADDRESS	:	www.zoreltekstil.com.tr

LEGAL STATUS AND HISTORY

TAX OFFICE

:

Pamukkale

TAX NO

:

9990013269

REGISTRATION NUMBER

:

9722

REGISTERED OFFICE

:

Denizli Chamber of Commerce

DATE ESTABLISHED

:

28.03.1989

LEGAL FORM

:

Limited Company

TYPE OF COMPANY

:

Private

REGISTERED CAPITAL

:

TL 4.000.000

PAID-IN CAPITAL

:

TL 4.000.000

HISTORY

:

Previous Address	:	Goveclik Koyu No:38-Denizli
Changed On	:	19.10.2011 (Commercial Gazette Date /Number 26.10.2011/ 7929)

OWNERSHIP / MANAGEMENT

SHAREHOLDERS

:

Fehmi Zora	30 %
Ahmet Zora	29 %
Rafet Zora	21 %
Mustafa Celikel	20 %

SISTER COMPANIES

:

AFZ TEKSTIL TARIM URUNLERI HAYVANCILIK MADENCILIK SANAYI VE TICARET A.S.

AZORA TARIM URUNLERI, HAYVANCILIK, INSAAT, ENERJI, GIDA, TURIZM VE MADENCILIK SANAYI VE TICARET LTD. STI.

ZORA TEKSTIL SANAYI VE TICARET LTD. STI.

SUBSIDIARIES

:

None

DIRECTORS

:

Mustafa Celikel

Rafet Zora

Ahmet Zora

Fehmi Zora

OPERATIONS

BUSINESS ACTIVITIES

:

Manufacture and trade of towels and bathrobes.

NACE CODE

:

DB.17.40

SECTOR

:

Textile

NUMBER OF EMPLOYEES

:

109

NET SALES

:

28.612 TL Thousand	(2011)
26.707 TL Thousand	(2012)
28.417 TL Thousand	(01.01-30.09.2013)

IMPORT COUNTRIES

:

Uzbekistan

Pakistan

Turkmenistan

MERCHANDISE IMPORTED

:

Yarn

EXPORT VALUE

:

27.316.001 TL	(2011)
21.253.641 TL	(2012)
19.342.882 TL	(01.01-30.09.2013)

EXPORT COUNTRIES	:	U.K. European Countries
MERCHANDISE EXPORTED	:	Bathrobe Towel
HEAD OFFICE ADDRESS	:	Barbaros Mah. Mehmet Emin Durul Cad. No:38 Merkez Denizli / Turkey
BRANCHES	:	Head Office/Factory : Barbaros Mah. Mehmet Emin Durul Cad. No:38 Merkez Denizli/Turkey Branch Office : Merkez Denizli/Turkey
INVESTMENTS	:	None

TREND OF BUSINESS	:	There was a decline at business volume in nominal terms in 2012. There appears an upwards trend in 1.1 - 30.9.2013.
SIZE OF BUSINESS	:	Large

FINANCE

MAIN DEALING BANKS	:	Finansbank Denizli Branch T. Garanti Bankasi Denizli Branch T. Halk Bankasi Denizli Ticari Branch Yapi ve Kredi Bankasi Denizli 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

:

	(2012) TL Thousand	(01.01-30.09.2013) TL Thousand
Net Sales	26.707	28.417
Profit (Loss) Before Tax	571	435
Stockholders' Equity	5.922
Total Assets	29.400
Current Assets	25.805
Non-Current Assets	3.595
Current Liabilities	14.679
Long-Term Liabilities	8.799
Gross Profit (loss)	3.834	6.047
Operating Profit (loss)	859	3.805
Net Profit (loss)	462	435

COMMENT ON FINANCIAL POSITION

Capitalization	Insufficient As of 31.12.2012
Liquidity	Satisfactory As of 31.12.2012
Remarks On Liquidity	The unfavorable gap between average collection and average payable period has an adverse 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	Fair Operating Profitability in 2012 Fair Net Profitability in 2012 High Operating Profitability (01.01-30.09.2013) Low Net Profitability (01.01-30.09.2013)
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
( 2011 )	13,33 %	1,6797	2,3378	2,6863
( 2012 )	2,45 %	1,7995	2,3265	2,8593
( 01.01-30.09.2013)	4,43 %	1,8785	2,4774	2,9189
( 01.01-31.10.2013)	5,15 %	1,8889	2,4999	2,9446

BALANCE SHEETS
	( 31.12.2012 ) TL Thousand
CURRENT ASSETS	25.805	0,88
Not Detailed Current Assets	0	0,00
Cash and Banks	1.274	0,04
Marketable Securities	0	0,00
Account Receivable	18.228	0,62
Other Receivable	74	0,00
Inventories	4.891	0,17
Advances Given	1.168	0,04
Accumulated Construction Expense	0	0,00
Other Current Assets	170	0,01
NON-CURRENT ASSETS	3.595	0,12
Not Detailed Non-Current Assets	0	0,00
Long-term Receivable	0	0,00
Financial Assets	0	0,00
Tangible Fixed Assets (net)	3.443	0,12
Intangible Assets	56	0,00
Deferred Tax Assets	0	0,00
Other Non-Current Assets	96	0,00
TOTAL ASSETS	29.400	1,00
CURRENT LIABILITIES	14.679	0,50
Not Detailed Current Liabilities	0	0,00
Financial Loans	8.043	0,27
Accounts Payable	5.165	0,18
Loans from Shareholders	814	0,03
Other Short-term Payable	0	0,00
Advances from Customers	34	0,00
Accumulated Construction Income	0	0,00
Taxes Payable	72	0,00
Provisions	109	0,00
Other Current Liabilities	442	0,02
LONG-TERM LIABILITIES	8.799	0,30
Not Detailed Long-term Liabilities	0	0,00
Financial Loans	8.015	0,27
Securities Issued	0	0,00
Long-term Payable	784	0,03
Loans from Shareholders	0	0,00
Other Long-term Liabilities	0	0,00
Provisions	0	0,00
STOCKHOLDERS' EQUITY	5.922	0,20
Not Detailed Stockholders' Equity	0	0,00
Paid-in Capital	4.000	0,14
Cross Shareholding Adjustment of Capital	0	0,00
Inflation Adjustment of Capital	2.266	0,08
Equity of Consolidated Firms	0	0,00
Reserves	1.250	0,04
Revaluation Fund	0	0,00
Accumulated Losses(-)	-2.056	-0,07
Net Profit (loss)	462	0,02
TOTAL LIABILITIES AND EQUITY	29.400	1,00

INCOME STATEMENTS
	(2012) TL Thousand		(01.01-30.09.2013) TL Thousand
Net Sales	26.707	1,00	28.417	1,00
Cost of Goods Sold	22.873	0,86	22.370	0,79
Gross Profit	3.834	0,14	6.047	0,21
Operating Expenses	2.975	0,11	2.242	0,08
Operating Profit	859	0,03	3.805	0,13
Other Income	1.200	0,04	1.073	0,04
Other Expenses	728	0,03	3.849	0,14
Financial Expenses	760	0,03	594	0,02
Minority Interests	0	0,00	0	0,00
Profit (loss) of consolidated firms	0	0,00	0	0,00
Profit (loss) Before Tax	571	0,02	435	0,02
Tax Payable	109	0,00	0	0,00
Postponed Tax Gain	0	0,00	0	0,00
Net Profit (loss)	462	0,02	435	0,02

FINANCIAL RATIOS
	(2012)
LIQUIDITY RATIOS
Current Ratio	1,76
Acid-Test Ratio	1,33
Cash Ratio	0,09
ASSET STRUCTURE RATIOS
Inventory/Total Assets	0,17
Short-term Receivable/Total Assets	0,62
Tangible Assets/Total Assets	0,12
TURNOVER RATIOS
Inventory Turnover	4,68
Stockholders' Equity Turnover	4,51
Asset Turnover	0,91
FINANCIAL STRUCTURE
Stockholders' Equity/Total Assets	0,20
Current Liabilities/Total Assets	0,50
Financial Leverage	0,80
Gearing Percentage	3,96
PROFITABILITY RATIOS
Net Profit/Stockholders' Eq.	0,08
Operating Profit Margin	0,03
Net Profit Margin	0,02
Interest Cover	1,75
COLLECTION-PAYMENT
Average Collection Period (days)	245,71
Average Payable Period (days)	93,63
WORKING CAPITAL	11126,00

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.68
UK Pound	1	Rs.102.96
Euro	1	Rs.84.57

INFORMATION DETAILS

Report Prepared by :

DPT

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.