MIRA INFORM REPORT

 

 

Report Date :

27.05.2014

 

IDENTIFICATION DETAILS

           

Name :

SOFITEKS TEKSTIL SANAYI VE TICARET A.S.

 

 

Registered Office :

Organize Sanayi Bolgesi Kirmizi Cad. No:17 Nilufer Bursa

 

 

Country :

Turkey

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

26.07.1994

 

 

Com. Reg. No.:

35877

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacturer and trader of carpet and yarn

 

 

No of Employees :

255

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Turkey

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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 around 9% in 2010-11, as exports returned to normal levels following the recession. Growth dropped to roughly 3% in 2012-13. Turkey's public sector debt to GDP ratio has fallen below 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 reached nearly $195 billion at year-end 2013, reflecting Turkey's good growth even in the face of 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

:

SOFITEKS TEKSTIL SANAYI VE TICARET A.S.

HEAD OFFICE ADDRESS

:

Organize Sanayi Bolgesi Kirmizi Cad. No:17 Nilufer Bursa / Turkey

PHONE NUMBER

:

90-224-241 00 20

 

FAX NUMBER

:

90-224-241 00 24

 

WEB-ADDRESS

:

www.sofiteks.com

E-MAIL

:

sofiteks@sofiteks.com

 

 

LEGAL STATUS AND HISTORY

 

TAX OFFICE

:

Ertugrulgazi

TAX NO

:

7720024761

REGISTRATION NUMBER

:

35877

REGISTERED OFFICE

:

Bursa Chamber of Commerce and Industry

DATE ESTABLISHED

:

26.07.1994

ESTABLISHMENT GAZETTE DATE/NO

:

29.07.1994/3584

LEGAL FORM

:

Joint Stock Company

TYPE OF COMPANY

:

Private

REGISTERED CAPITAL

:

TL   17.500.000

PAID-IN CAPITAL

:

TL   17.500.000

HISTORY

:

Previous Registered Capital

:

TL 13.500.000

Changed On

:

03.05.2006 (Commercial Gazette Date /Number 22.05.2006/ 6560)

Previous Registered Capital

:

TL 14.500.000

Changed On

:

12.12.2006 (Commercial Gazette Date /Number 19.12.2006/ 6707)

Previous Address

:

Inonu Cad. Sonmez Is Sarayi No:236 Bursa

Changed On

:

18.10.2000 (Commercial Gazette Date /Number 28.11.2000/ 5184)

Previous Address

:

Kayapa Sanayi Bolgesi Sofiteks Tesisleri Bursa

Changed On

:

23.01.2006 (Commercial Gazette Date /Number 07.02.2006/ 6487)

Merger

:

The subject company took over and merged with Soficon Tekstil Sanayi Ve Ticaret AS under the name of Sofiteks Tekstil Sanayi ve Ticaret A.S.

Changed On

:

17.11.1999 (Commercial Gazette Date /Number 19.11.1999/ 4923)

 

 

OWNERSHIP / MANAGEMENT

 

SHAREHOLDERS

:

Mc Three Holdings NV

99,98 %

Ficovan International BV

0,02 %

 

 

SUBSIDIARIES

:

Declared to be: None

 

BOARD OF DIRECTORS

:

Stefaan Joost Arthur Duchi

Chairman

Sophia Isabelle Vanwynsberghe

Vice-Chairman

 

 

OPERATIONS

 

BUSINESS ACTIVITIES

:

Manufacture and trade of carpet and yarn. The subject company has been manufacturing yarn for its own use since 2008.

 

NACE CODE

:

DB.17.60

 

SECTOR

:

Textile

TRADEMARKS OWNED

:

Sofi

Sofiteks

 

NUMBER OF EMPLOYEES

:

255

 

NET SALES

:

13.372.477 TL

(2004) 

17.103.336 TL

(2005) 

16.300.654 TL

(2006) 

23.648.488 TL

(2007) 

27.725.291 TL

(2008) 

30.764.384 TL

(2009) 

32.012.357 TL

(2010) 

34.881.136 TL

(2011) 

35.141 TL Thousand

(2012) 

40.703 TL Thousand

(2013) 

 

 

REMARKS ON NET SALES

:

The net sales figure of 2011 is declared by the subject. There is no certification for this figure.

 

CAPACITY

:

Carpet  ( Sqm/yr)

Yarn  ( kgs/yr)

 

 

1.767.936

435.200

 

(2010)

1.767.936

435.200

 

(2011)

 

 

 

 

IMPORT VALUE

:

6.500.000 USD

(2007)

6.250.000 USD

(2008)

6.191.322 USD

(2009)

7.682.750 USD

(2010)

7.000.000 USD

(2011)

1.700.000 USD

(01.01-31.03.2012)

 

 

IMPORT COUNTRIES

:

Belgium

Italy

Greece

India

China

 

MERCHANDISE IMPORTED

:

Granule

Jute yarn

Machinery

Polypropylene yarn

 

EXPORT VALUE

:

21.497.504 TL

(2007)

25.802.759 TL

(2008)

29.535.991 TL

(2009)

29.185.977 TL

(2010)

29.840.815 TL

(2011)

32.867 TL Thousand

(2012)

37.819 TL Thousand

(2013)

 

 

EXPORT COUNTRIES

:

Serbia

Albania

Middle East Countries

Bosnia and Herzegovina

Azerbaijan

Germany

South Africa

Guyana

Mauritius

Macedonia Republic

Bulgaria

Belgium

Greece

Philippines

Malaysia

Nepal

India

Yemen

 

MERCHANDISE  EXPORTED

:

Carpet

 

HEAD OFFICE ADDRESS

:

Organize Sanayi Bolgesi Kirmizi Cad. No:17 Nilufer Bursa / Turkey ( owned )

 

BRANCHES

:

Head Office/Factory  :  Organize Sanayi Bolgesi Kirmizi Cad. No:17 Nilufer Bursa/Turkey (owned) (14.174 sqm)

 

INVESTMENTS

:

None

 

 

TREND OF BUSINESS

:

There was an upwards trend in  2013.

SIZE OF BUSINESS

:

Large

  

 

FINANCE

 

MAIN DEALING BANKS

:

Akbank Fomara Branch

Denizbank Bursa Branch

Finansbank Bursa Branch

ING Bank Demirtas Branch

T. Garanti Bankasi Organize Sanayi Bolgesi Branch

T. Is Bankasi Bursa Ticari Branch

Yapi ve Kredi Bankasi Organize Sanayi 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

(2013) TL Thousand

 

 

 

Net Sales

35.141

40.703

 

 

 

Profit (Loss) Before Tax

2.639

387

 

 

 

Stockholders' Equity

17.971

18.358

 

 

 

Total Assets

42.443

47.099

 

 

 

Current Assets

37.055

38.337

 

 

 

Non-Current Assets

5.388

8.762

 

 

 

Current Liabilities

19.587

24.765

 

 

 

Long-Term Liabilities

4.885

3.976

 

 

 

Gross Profit (loss)

4.638

4.400

 

 

 

Operating Profit (loss)

1.804

159

 

 

 

Net Profit (loss)

2.408

387

 

 

 

 

 

 

 

 

COMMENT ON FINANCIAL POSITION

 

Capitalization

Satisfactory As of 31.12.2013

Remarks on Capitalization

A part of liabilities consist of loans from shareholders.

Liquidity

Insufficient As of 31.12.2013

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

In Order Operating Profitability  in 2012

High Net Profitability  in 2012

Low Operating Profitability  in 2013

Low Net Profitability  in 2013

 

Gap between average collection and payable periods

Unfavorable in 2013

General Financial Position

Passable

 

 

Incr. in producers’ price index

 

Average USD/TL

Average EUR/TL

Average GBP/ TL

 ( 2004 )

13,84 %

1,4266

1,7666

2,6001

 ( 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

 ( 01.01-31.03.2012)

0,65 %

1,7995

2,3799

2,8402

 ( 2012 )

2,45 %

1,7995

2,3265

2,8593

 ( 2013 )

6,97 %

1,9179

2,5530

3,0178

 ( 01.01-30.04.2014)

5,61 %

2,1807

2,9954

3,6333

 

 

BALANCE SHEETS

 

 

 ( 31.12.2012 )  TL Thousand

 

 ( 31.12.2013 )  TL Thousand

 

CURRENT ASSETS

37.055

0,87

38.337

0,81

Not Detailed Current Assets

0

0,00

0

0,00

Cash and Banks

2.883

0,07

986

0,02

Marketable Securities

0

0,00

0

0,00

Account Receivable

11.451

0,27

12.955

0,28

Other Receivable

521

0,01

815

0,02

Inventories

20.861

0,49

22.083

0,47

Advances Given

366

0,01

84

0,00

Accumulated Construction Expense

0

0,00

0

0,00

Other Current Assets

973

0,02

1.414

0,03

NON-CURRENT ASSETS

5.388

0,13

8.762

0,19

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)

2.692

0,06

4.263

0,09

Intangible Assets

2.693

0,06

4.172

0,09

Deferred Tax Assets

0

0,00

0

0,00

Other Non-Current Assets

3

0,00

327

0,01

TOTAL ASSETS

42.443

1,00

47.099

1,00

CURRENT LIABILITIES

19.587

0,46

24.765

0,53

Not Detailed Current Liabilities

0

0,00

0

0,00

Financial Loans

5.519

0,13

12.904

0,27

Accounts Payable

10.599

0,25

9.330

0,20

Loans from Shareholders

0

0,00

1.454

0,03

Other Short-term Payable

235

0,01

306

0,01

Advances from Customers

2.152

0,05

160

0,00

Accumulated Construction Income

0

0,00

0

0,00

Taxes Payable

256

0,01

198

0,00

Provisions

826

0,02

413

0,01

Other Current Liabilities

0

0,00

0

0,00

LONG-TERM LIABILITIES

4.885

0,12

3.976

0,08

Not Detailed Long-term Liabilities

0

0,00

0

0,00

Financial Loans

4.885

0,12

3.976

0,08

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

17.971

0,42

18.358

0,39

Not Detailed Stockholders' Equity

17.971

0,42

0

0,00

Paid-in Capital

0

0,00

17.500

0,37

Cross Shareholding Adjustment of Capital

0

0,00

0

0,00

Inflation Adjustment of Capital

0

0,00

754

0,02

Equity of Consolidated Firms

0

0,00

0

0,00

Reserves

0

0,00

6.659

0,14

Revaluation Fund

0

0,00

0

0,00

Accumulated Losses(-)

0

0,00

-6.942

-0,15

Net Profit (loss)

0

0,00

387

0,01

TOTAL LIABILITIES AND EQUITY

42.443

1,00

47.099

1,00

 

 

REMARKS ON FINANCIAL STATEMENT

:

The financial statements of 2013 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 thousand 5.586 of the other income is due to "Profit from Foreign Currency Exchange". 

 

At the last income statement, TL thousand  2.387 of the other income is due to "Other Extraordinary Income" . 

 

At the last income statement TL thousand 7.105 of the other expenses is due to "Loss from Foreign Currency Exchange" .

 

 

INCOME STATEMENTS

 

 

(2012) TL Thousand

 

(2013) TL Thousand

 

Net Sales

35.141

1,00

40.703

1,00

Cost of Goods Sold

30.503

0,87

36.303

0,89

Gross Profit

4.638

0,13

4.400

0,11

Operating Expenses

2.834

0,08

4.241

0,10

Operating Profit

1.804

0,05

159

0,00

Other Income

4.325

0,12

8.053

0,20

Other Expenses

2.866

0,08

7.347

0,18

Financial Expenses

624

0,02

478

0,01

Minority Interests

0

0,00

0

0,00

Profit (loss) of consolidated firms

0

0,00

0

0,00

Profit (loss) Before Tax

2.639

0,08

387

0,01

Tax Payable

231

0,01

0

0,00

Postponed Tax Gain

0

0,00

0

0,00

Net Profit (loss)

2.408

0,07

387

0,01

 


 

FINANCIAL RATIOS

 

 

(2012)

(2013)

LIQUIDITY RATIOS

 

Current Ratio

1,89

1,55

Acid-Test Ratio

0,76

0,60

Cash Ratio

0,15

0,04

ASSET STRUCTURE RATIOS

 

Inventory/Total Assets

0,49

0,47

Short-term Receivable/Total Assets

0,28

0,29

Tangible Assets/Total Assets

0,06

0,09

TURNOVER RATIOS

 

Inventory Turnover

1,46

1,64

Stockholders' Equity Turnover

1,96

2,22

Asset Turnover

0,83

0,86

FINANCIAL STRUCTURE

 

Stockholders' Equity/Total Assets

0,42

0,39

Current Liabilities/Total Assets

0,46

0,53

Financial Leverage

0,58

0,61

Gearing Percentage

1,36

1,57

PROFITABILITY RATIOS

 

Net Profit/Stockholders' Eq.

0,13

0,02

Operating Profit Margin

0,05

0,00

Net Profit Margin

0,07

0,01

Interest Cover

5,23

1,81

COLLECTION-PAYMENT

 

Average Collection Period (days)

117,31

114,58

Average Payable Period (days)

125,09

92,52

WORKING CAPITAL

17468,00

13572,00

 

 

 


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.58.58

UK Pound

1

Rs.98.66

Euro

1

Rs.79.81

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

MNL

 

 

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.