MIRA INFORM REPORT

 

 

Report Date :

11.02.2014

 

IDENTIFICATION DETAILS

 

Name :

ERKUNT TRAKTOR SANAYII A.S.

 

 

Formerly Known As :

ERKUNT TARIM MAKINALARI SANAYI A.S.

 

 

Registered Office :

Organize Sanayi Bolgesi Bati Hun Caddesi No:2-4 Sincan Ankara

 

 

Country :

Turkey

 

 

Financials (as on) :

30.06.2012

 

 

Date of Incorporation :

12.09.2003

 

 

Com. Reg. No.:

182625

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacturer and trader of tractor.  

 

 

No of Employees :

250

 

 

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

:

ERKUNT TRAKTOR SANAYII A.S.

HEAD OFFICE ADDRESS

:

Organize Sanayi Bolgesi Bati Hun Caddesi No:2-4 Sincan Ankara / Turkey

PHONE NUMBER

:

90-312-267 44 88

 

FAX NUMBER

:

90-312-267 44 91

 

WEB-ADDRESS

:

www.erkunttraktor.com.tr

E-MAIL

:

info@erkunttraktor.com.tr

 

 

LEGAL STATUS AND HISTORY

 

 

TAX OFFICE

:

Sincan

TAX NO

:

3630178028

REGISTRATION NUMBER

:

182625

REGISTERED OFFICE

:

Ankara Chamber of Commerce

DATE ESTABLISHED

:

12.09.2003

ESTABLISHMENT GAZETTE DATE/NO

:

17.09.2003/5887

LEGAL FORM

:

Joint Stock Company

TYPE OF COMPANY

:

Private

REGISTERED CAPITAL

:

TL   19.000.000

PAID-IN CAPITAL

:

TL   19.000.000

HISTORY

:

Previous Name

:

Erkunt Tarim Makinalari Sanayi A.S.

Changed On

:

01.04.2008 (Commercial Gazette Date /Number 04.04.2008/ 7035)

Previous Registered Capital

:

TL 13.000.000

Changed On

:

06.04.2012 (Commercial Gazette Date /Number 10.04.2012/ 8045)

 

 

OWNERSHIP / MANAGEMENT

 

 

SHAREHOLDERS

:

Tuna Armagan

 

Zeynep Armagan

 

Haluk Armagan

 

Ayse Bolukbasi

 

Nevin Erkunt

 

Asli Gul Armagan

 

Murat Armagan

 

 

 

SISTER COMPANIES

:

ERKUNT SANAYI A.S.

 

SUBSIDIARIES

:

ERKUNT SANAYI A.S.  ( 35 % )

 

BOARD OF DIRECTORS

:

Tuna Armagan

Chairman

Zeynep Armagan

Vice-Chairman

DIRECTORS

:

Zeynep Armagan                                                                                                                                                                                                                                                                                   

General Manager

 

 

OPERATIONS

 

 

BUSINESS ACTIVITIES

:

Manufacture and trade of tractor.  

 

The subject which was dealing with trade of tractor parts started manufacturing activity in 2004.  

 

The subject has declared that it has 95  agencies in Turkey.  

 

NACE CODE

:

DK.29.31

 

TRADEMARKS OWNED

:

Armatrak

Erkunt

 

NUMBER OF EMPLOYEES

:

250

 

NET SALES

:

54.036.106 TL

(2005) 

62.591.236 TL

(2006) 

36.047.188 TL

(2007) 

57.065.499 TL

(2008) 

37.900.190 TL

(2009) 

135.381.934 TL

(2010) 

281.199.068 TL

(2011) 

254.098.113 TL

(2012) 

 

 

IMPORT VALUE

:

1.000.000 USD

(2006)

2.062.280 USD

(2007)

6.800.000 EUR

(2008)

4.109.486 EUR + 23.700 USD

(2009)

15.404.437 EUR + 289.654 USD

(2010)

9.800.289 EUR + 126.192 USD

(01.01-10.04.2011)

 

 

IMPORT COUNTRIES

:

Austria

Germany

Italy

India

China

U.K.

 

MERCHANDISE IMPORTED

:

Electrical components

Engine

Panel

Shaft

 

EXPORT VALUE

:

5.571.000 USD

(2005)

9.746.967 TL

(2006)

5.699.256 TL

(2007)

11.946.491 TL

(2008)

11.558.169 TL

(2009)

24.787.648 TL

(2010)

39.763.617 TL

(2011)

42.113.066 TL

(2012)

 

 

EXPORT COUNTRIES

:

Bulgaria

Northern Cyprus Turkish Republic

Iraq

Romania

Morocco

Algeria

Hungary

India

Sudan

 

MERCHANDISE  EXPORTED

:

Parts of tractor

Tractors

 

HEAD OFFICE ADDRESS

:

Organize Sanayi Bolgesi Bati Hun Caddesi No:2-4 Sincan  Ankara / Turkey

( owned )

 

BRANCHES

:

Head Office/Factory  :  Organize Sanayi Bolgesi Bati Hun Caddesi No:2-4 Sincan Ankara/Turkey (owned)

 

 

TREND OF BUSINESS

:

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

SIZE OF BUSINESS

:

Giant

 

 

 

 

FINANCE

 

 

MAIN DEALING BANKS

:

Akbank Baskent Kurumsal Branch

T.Garanti Bankasi Ankara Ticari Branch

T.Halk Bankasi Baskent Kurumsal Branch

T.Is Bankasi Baskent Kurumsal Branch

Vakiflar Bankasi Merkez Kurumsal 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

:

 

(2009) TL

(2010) TL

(2011) TL

 

 

Net Sales

37.900.190

135.381.934

281.199.068

 

 

Profit (Loss) Before Tax

-9.074.281

5.781.992

9.592.151

 

 

Stockholders' Equity

5.238.362

11.020.354

20.545.836

 

 

Total Assets

177.698.327

258.446.062

245.032.216

 

 

Current Assets

129.293.157

210.020.150

196.240.005

 

 

Non-Current Assets

48.405.170

48.425.912

48.792.211

 

 

Current Liabilities

171.992.912

247.113.633

203.486.380

 

 

Long-Term Liabilities

467.053

312.075

21.000.000

 

 

Gross Profit (loss)

5.070.504

20.088.876

33.701.725

 

 

Operating Profit (loss)

420.992

11.831.225

19.667.372

 

 

Net Profit (loss)

-9.074.281

5.781.992

9.592.151

 

 

REMARKS ON KEY FINANCIAL ELEMENTS

:

The stockholders' equity as of 31.12.2012 is TL 21.904.142 and total asset as of 31.12.2012 is TL 254.658.248.

 

 

COMMENT ON FINANCIAL POSITION

 

 

Capitalization

Low As of 31.12.2012

Liquidity

Fair As of 30.06.2012

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

Low Operating Profitability  in 2009

Net Loss  in 2009

Good Operating Profitability  in 2010

In Order Net Profitability  in 2010

Good Operating Profitability  in 2011

In Order Net Profitability  in 2011

In Order Operating Profitability  in 2012

Low Net Profitability  in 2012

 

Gap between average collection and payable periods

Unfavorable in 01.01.-30.06.2012

General Financial Position

Passable

 

 

 

Incr. in producers’ price index

 

Average USD/TL

Average EUR/TL

Average GBP/ TL

 ( 2005 )

2,66 %

1,3499

1,6882

2,4623

 ( 2006 )

11,58 %

1,4309

1,7987

2,6377

 ( 2007 )

5,94 %

1,3075

1,7901

2,6133

 ( 2008 )

8,11 %

1,2858

1,8876

2,3708

 ( 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

 ( 01.01-30.06.2012)

1,95 %

1,8028

2,3463

2,8462

 ( 2012 )

2,45 %

1,7995

2,3265

2,8593

 ( 01.01-31.01.2014)

3,32 %

2,2040

3,0090

3,6415

 

 

BALANCE SHEETS

 

 

 ( 31.12.2009 )  TL

 

 ( 31.12.2010 )  TL

 

 ( 31.12.2011 )  TL

 

 ( 30.06.2012 )  TL

 

CURRENT ASSETS

129.293.157

0,73

210.020.150

0,81

196.240.005

0,80

220.172.985

0,82

Not Detailed Current Assets

0

0,00

0

0,00

0

0,00

0

0,00

Cash and Banks

97.599.230

0,55

146.567.714

0,57

21.019.298

0,09

20.963.579

0,08

Marketable Securities

0

0,00

0

0,00

0

0,00

0

0,00

Account Receivable

17.323.758

0,10

35.236.069

0,14

107.894.510

0,44

111.516.084

0,41

Other Receivable

725.868

0,00

4.544.228

0,02

18.488.420

0,08

27.994.180

0,10

Inventories

11.234.082

0,06

14.218.970

0,06

25.043.929

0,10

32.086.973

0,12

Advances Given

131.066

0,00

3.907.524

0,02

9.840.961

0,04

11.754.399

0,04

Accumulated Construction Expense

0

0,00

0

0,00

0

0,00

0

0,00

Other Current Assets

2.279.153

0,01

5.545.645

0,02

13.952.887

0,06

15.857.770

0,06

NON-CURRENT ASSETS

48.405.170

0,27

48.425.912

0,19

48.792.211

0,20

48.847.956

0,18

Not Detailed Non-Current Assets

0

0,00

0

0,00

0

0,00

0

0,00

Long-term Receivable

0

0,00

0

0,00

0

0,00

17.879

0,00

Financial Assets

26.484.747

0,15

26.484.747

0,10

26.547.745

0,11

26.547.745

0,10

Tangible Fixed Assets (net)

21.484.739

0,12

20.547.992

0,08

21.074.329

0,09

21.230.735

0,08

Intangible Assets

435.684

0,00

1.393.173

0,01

1.095.887

0,00

1.051.597

0,00

Deferred Tax Assets

0

0,00

0

0,00

0

0,00

0

0,00

Other Non-Current Assets

0

0,00

0

0,00

74.25

0,00

0

0,00

TOTAL ASSETS

177.698.327

1,00

258.446.062

1,00

245.032.216

1,00

269.020.941

1,00

CURRENT LIABILITIES

171.992.912

0,97

247.113.633

0,96

203.486.380

0,83

225.193.617

0,84

Not Detailed Current Liabilities

0

0,00

0

0,00

0

0,00

0

0,00

Financial Loans

147.448.303

0,83

175.972.085

0,68

75.868.428

0,31

110.256.816

0,41

Accounts Payable

9.653.851

0,05

41.022.127

0,16

76.816.244

0,31

63.290.434

0,24

Loans from Shareholders

180.75

0,00

180.75

0,00

0

0,00

0

0,00

Other Short-term Payable

617.001

0,00

1.121.474

0,00

2.625.490

0,01

1.611.566

0,01

Advances from Customers

9.619.419

0,05

24.476.988

0,09

46.430.922

0,19

47.104.576

0,18

Accumulated Construction Income

0

0,00

0

0,00

0

0,00

0

0,00

Taxes Payable

267.389

0,00

400.155

0,00

0

0,00

0

0,00

Provisions

0

0,00

0

0,00

0

0,00

0

0,00

Other Current Liabilities

4.206.199

0,02

3.940.054

0,02

1.745.296

0,01

2.930.225

0,01

LONG-TERM LIABILITIES

467.053

0,00

312.075

0,00

21.000.000

0,09

24.000.003

0,09

Not Detailed Long-term Liabilities

0

0,00

0

0,00

0

0,00

0

0,00

Financial Loans

467.053

0,00

312.075

0,00

21.000.000

0,09

24.000.003

0,09

Securities Issued

0

0,00

0

0,00

0

0,00

0

0,00

Long-term Payable

0

0,00

0

0,00

0

0,00

0

0,00

Loans from Shareholders

0

0,00

0

0,00

0

0,00

0

0,00

Other Long-term Liabilities

0

0,00

0

0,00

0

0,00

0

0,00

Provisions

0

0,00

0

0,00

0

0,00

0

0,00

STOCKHOLDERS' EQUITY

5.238.362

0,03

11.020.354

0,04

20.545.836

0,08

19.827.321

0,07

Not Detailed Stockholders' Equity

0

0,00

0

0,00

0

0,00

0

0,00

Paid-in Capital

13.000.000

0,07

13.000.000

0,05

13.000.000

0,05

19.000.000

0,07

Cross Shareholding Adjustment of Capital

0

0,00

0

0,00

0

0,00

0

0,00

Inflation Adjustment of Capital

0

0,00

0

0,00

0

0,00

0

0,00

Equity of Consolidated Firms

0

0,00

0

0,00

0

0,00

0

0,00

Reserves

1.038.342

0,01

1.038.342

0,00

1.281.132

0,01

1.600.057

0,01

Revaluation Fund

274.301

0,00

274.301

0,00

0

0,00

0

0,00

Accumulated Losses(-)

0

0,00

-9.074.281

-0,04

-3.327.447

-0,01

59.574

0,00

Net Profit (loss)

-9.074.281

-0,05

5.781.992

0,02

9.592.151

0,04

-832.31

0,00

TOTAL LIABILITIES AND EQUITY

177.698.327

1,00

258.446.062

1,00

245.032.216

1,00

269.020.941

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

 

(01.01-30.06.2012) TL

 

(2012) TL

 

Net Sales

37.900.190

1,00

135.381.934

1,00

281.199.068

1,00

145.622.139

1,00

254.173.751

1,00

Cost of Goods Sold

32.829.686

0,87

115.293.058

0,85

247.497.343

0,88

132.203.728

0,91

227.736.738

0,90

Gross Profit

5.070.504

0,13

20.088.876

0,15

33.701.725

0,12

13.418.411

0,09

26.437.013

0,10

Operating Expenses

4.649.512

0,12

8.257.651

0,06

14.034.353

0,05

8.363.825

0,06

17.396.783

0,07

Operating Profit

420.992

0,01

11.831.225

0,09

19.667.372

0,07

5.054.586

0,03

9.040.230

0,04

Other Income

9.775.813

0,26

12.439.377

0,09

0

0,00

101.207

0,00

7.778.096

0,03

Other Expenses

3.251.551

0,09

2.354.047

0,02

51.811

0,00

0

0,00

5.699.141

0,02

Financial Expenses

16.019.535

0,42

16.134.563

0,12

10.023.410

0,04

5.988.103

0,04

9.552.972

0,04

Minority Interests

0

0,00

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

0

0,00

Profit (loss) Before Tax

-9.074.281

-0,24

5.781.992

0,04

9.592.151

0,03

-832.31

-0,01

1.566.213

0,01

Tax Payable

0

0,00

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

0

0,00

Net Profit (loss)

-9.074.281

-0,24

5.781.992

0,04

9.592.151

0,03

-832.31

-0,01

1.566.213

0,01

 

 

FINANCIAL RATIOS

 

 

-2009

-2010

-2011

(01.01-30.06.2012)

LIQUIDITY RATIOS

 

 

Current Ratio

0,75

0,85

0,96

0,98

Acid-Test Ratio

0,67

0,75

0,72

0,71

Cash Ratio

0,57

0,59

0,10

0,09

ASSET STRUCTURE RATIOS

 

 

Inventory/Total Assets

0,06

0,06

0,10

0,12

Short-term Receivable/Total Assets

0,10

0,15

0,52

0,52

Tangible Assets/Total Assets

0,12

0,08

0,09

0,08

TURNOVER RATIOS

 

 

Inventory Turnover

2,92

8,11

9,88

4,12

Stockholders' Equity Turnover

7,24

12,28

13,69

7,34

Asset Turnover

0,21

0,52

1,15

0,54

FINANCIAL STRUCTURE

 

 

Stockholders' Equity/Total Assets

0,03

0,04

0,08

0,07

Current Liabilities/Total Assets

0,97

0,96

0,83

0,84

Financial Leverage

0,97

0,96

0,92

0,93

Gearing Percentage

32,92

22,45

10,93

12,57

PROFITABILITY RATIOS

 

 

Net Profit/Stockholders' Eq.

-1,73

0,52

0,47

-0,04

Operating Profit Margin

0,01

0,09

0,07

0,03

Net Profit Margin

-0,24

0,04

0,03

-0,01

Interest Cover

0,43

1,36

1,96

0,86

COLLECTION-PAYMENT

 

 

Average Collection Period (days)

164,55

93,70

138,13

275,73

Average Payable Period (days)

105,86

128,09

111,73

172,34

WORKING CAPITAL

-42699755,00

-37093483,00

-7246375,00

-5020632,00

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs. 62.19

UK Pound

1

Rs. 102.13

Euro

1

Rs. 84.74

 

 

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.