MIRA INFORM REPORT

 

 

Report Date :

31.05.2014

 

IDENTIFICATION DETAILS

 

Name :

ERUSLU TEKSTIL SANAYI VE TICARET A.S.

 

 

Registered Office :

2. Organize Sanayi Bolgesi Celal Dogan Bulvari No:39 Gaziantep

 

 

Country :

Turkey

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

28.09.1994

 

 

Com. Reg. No.:

16711

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

·         Manufacture and trade of polypropylene yarn to be used at carpet, polypropylene fiber glass and machine-made carpet

·         Manufacture and trade of fabric

 

 

No. of Employees

450

 

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 – 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 3-4% in 2012-13. Turkey's public sector debt to GDP ratio has fallen below 40%, and two rating agencies upgraded Turkey's debt to investment grade in 2012 and 2013. Turkey remains dependent on often volatile, short-term investment to finance its large current account deficit. The stock value of FDI reached nearly $195 billion at year-end 2013, reflecting Turkey's robust 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, domestic political uncertainty, and turmoil within Turkey's neighborhood leave the economy vulnerable to destabilizing shifts in investor confidence

 

Source : CIA

 

 

 

Company name and address

 

 

NAME

:

ERUSLU TEKSTIL SANAYI VE TICARET A.S.

HEAD OFFICE ADDRESS

:

2. Organize Sanayi Bolgesi Celal Dogan Bulvari No:39 Gaziantep / Turkey

PHONE NUMBER

:

90-342-337 96 30 (6 lines)

 

FAX NUMBER

:

90-342-337 92 68

 

WEB-ADDRESS

:

www.eruslutekstil.com

E-MAIL

:

eruslu@eruslutekstil.com

 

 

LEGAL STATUS AND HISTORY

 

 

TAX OFFICE

:

Gazikent

TAX NO

:

3760004677

REGISTRATION NUMBER

:

16711

REGISTERED OFFICE

:

Gaziantep Chamber of Commerce

DATE ESTABLISHED

:

28.09.1994

ESTABLISHMENT GAZETTE DATE/NO

:

04.10.1994/3630

LEGAL FORM

:

Joint Stock Company

TYPE OF COMPANY

:

Private

REGISTERED CAPITAL

:

TL   40.000.000

PAID-IN CAPITAL

:

TL   40.000.000

 

HISTORY

:

Previous Registered Capital

:

TL 14.000.000

Changed On

:

28.06.2007 (Commercial Gazette Date /Number 11.07.2007/ 6849)

Previous Registered Capital

:

TL 15.000.000

Changed On

:

27.10.2010 (Commercial Gazette Date /Number 09.11.2010/ 7686)

Previous Registered Capital

:

TL 20.000.000

Changed On

:

09.08.2011 (Commercial Gazette Date /Number 17.08.2011/ 7882)

Previous Registered Capital

:

TL 35.000.000

Changed On

:

27.06.2012 (Commercial Gazette Date /Number 04.07.2012/ 8104)

 

 

OWNERSHIP / MANAGEMENT

 

 

SHAREHOLDERS

:

Okkas Eruslu

58 %

Eyyup Eruslu

15 %

Mehmet Ali Eruslu

15 %

Gussum Eruslu

7 %

Nazire Eruslu

5 %

 

 

SISTER COMPANIES

:

ERUSLU IC VE DIS TICARET PAZARLAMA A.S.

 

SUBSIDIARIES

:

None

 

BOARD OF DIRECTORS

:

Okkas Eruslu

Chairman

Mehmet Ali Eruslu

Vice-Chairman

Eyyup Eruslu

Member

 

 

OPERATIONS

 

 

BUSINESS ACTIVITIES

:

The firm which is dealing with manufacture and trade of polypropylene yarn to be used at carpet, polypropylene fiber glass and machine-made carpet, has also started to deal with manufacture and trade of fabric in 2010.  

 

NACE CODE

:

DB.17.00

 

SECTOR

:

Textile

 

TRADEMARKS OWNED

:

Emirhan

Eruslu

 

 

NUMBER OF EMPLOYEES

:

450

 

NET SALES

:

251.108 TL

(1999) 

1.032.226 TL

(2000) 

3.979.824 TL

(2001) 

8.431.984 TL

(2002) 

14.594.520 TL

(2003) 

27.013.914 TL

(2004) 

32.503.156 TL

(2005) 

44.783.005 TL

(2006) 

48.941.658 TL

(2007) 

48.218.429 TL

(2008) 

53.736.350 TL

(2009) 

71.763.024 TL

(2010) 

128.648.691 TL

(2011) 

139.837 TL Thousand

(2012) 

154.073 TL Thousand

(2013) 

 

 

IMPORT VALUE

:

19.701.000 TL

(2009)

34.282.000 TL

(2010)

 

 

IMPORT COUNTRIES

:

Israel

U.S.A.

Netherlands

 

MERCHANDISE IMPORTED

:

Polypropylene

Yarn

 

EXPORT VALUE

:

8.495 TL

(2000)

364.485 TL

(2001)

52.135 TL

(2002)

1.068.734 TL

(2003)

8.142.472 TL

(2004)

5.400.000 USD

(2005)

12.978.345 TL

(2006)

26.050.342 TL

(2007)

28.745.355 TL

(2008)

34.781.655 TL

(2009)

40.446.929 TL

(2010)

57.881.409 TL

(2011)

62.234.280 TL

(2012)

55.367.133 TL

(2013)

 

 

EXPORT COUNTRIES

:

Romania

 

MERCHANDISE  EXPORTED

:

Carpet

 

 

HEAD OFFICE ADDRESS

:

2. Organize Sanayi Bolgesi Celal Dogan Bulvari No:39  Gaziantep / Turkey  (owned)

 

BRANCHES

:

Factory  :  4. Organize Sanayi Bolgesi 83414 Nolu Cad. No:28 Sehitkamil Gaziantep/Turkey (owned)

 

Head Office/Factory  :  2. Organize Sanayi Bolgesi Celal Dogan Bulvari No:39 Gaziantep/Turkey (owned)

INVESTMENTS

:

None

 

TREND OF BUSINESS

:

There was an upwards trend in  2013.

SIZE OF BUSINESS

:

Giant

 

FINANCE

 

 

MAIN DEALING BANKS

:

Finansbank Merkez Branch

Turk Ekonomi Bankasi Gaziantep Branch

Yapi ve Kredi Bankasi Merkez 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

:

 

(2010) TL

(2011) TL

(2012) TL Thousand

(2013) TL Thousand

 

Net Sales

71.763.024

128.648.691

139.837

154.073

 

Profit (Loss) Before Tax

2.108.195

5.046.192

6.328

7.119

 

Stockholders' Equity

32.360.879

39.349.341

49.727

55.938

 

Total Assets

64.656.329

75.115.385

104.146

116.973

 

Current Assets

31.563.313

41.309.724

39.904

50.405

 

Non-Current Assets

33.093.016

33.805.661

64.242

66.568

 

Current Liabilities

13.632.202

24.200.213

22.296

35.837

 

Long-Term Liabilities

18.663.248

11.565.831

32.123

25.198

 

Gross Profit (loss)

6.327.212

16.396.151

8.969

18.362

 

Operating Profit (loss)

5.533.334

14.436.202

6.691

15.318

 

Net Profit (loss)

2.108.195

4.263.994

5.377

6.212

 

 

 

COMMENT ON FINANCIAL POSITION

 

Capitalization

In Order As of 31.12.2013

Liquidity

Satisfactory 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

Good Operating Profitability  in 2010

Fair Net Profitability  in 2010

High Operating Profitability  in 2011

In Order Net Profitability  in 2011

In Order Operating Profitability  in 2012

Good Net Profitability  in 2012

High Operating Profitability  in 2013

Good Net Profitability  in 2013

 

Gap between average collection and payable periods

Unfavorable in 2013

General Financial Position

In Order

 

 

 

Incr. in producers’ price index

 

Average USD/TL

Average EUR/TL

Average GBP/ TL

 ( 1999 )

62,90 %

0,4278

0,4518

0,6843

 ( 2000 )

32,70 %

0,6251

0,5774

0,9480

 ( 2001 )

88,60 %

1,1991

1,0714

1,7300

 ( 2002 )

30,80 %

1,5168

1,3741

2,2001

 ( 2003 )

13,90 %

1,5302

1,7141

2,4982

 ( 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

 ( 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

 

 

 ( 31.12.2010 )  TL

 

 ( 31.12.2011 )  TL

 

 ( 31.12.2012 )  TL Thousand

 

 ( 31.12.2013 )  TL Thousand

 

CURRENT ASSETS

31.563.313

0,49

41.309.724

0,55

39.904

0,38

50.405

0,43

Not Detailed Current Assets

0

0,00

0

0,00

0

0,00

0

0,00

Cash and Banks

11.858.122

0,18

4.161.363

0,06

5.777

0,06

3.138

0,03

Marketable Securities

0

0,00

0

0,00

0

0,00

0

0,00

Account Receivable

15.871.027

0,25

32.844.182

0,44

28.587

0,27

39.228

0,34

Other Receivable

639.621

0,01

1.264.026

0,02

1.498

0,01

363

0,00

Inventories

3.194.543

0,05

2.662.951

0,04

3.604

0,03

6.283

0,05

Advances Given

0

0,00

205.256

0,00

0

0,00

1.393

0,01

Accumulated Construction Expense

0

0,00

0

0,00

0

0,00

0

0,00

Other Current Assets

0

0,00

171.946

0,00

438

0,00

0

0,00

NON-CURRENT ASSETS

33.093.016

0,51

33.805.661

0,45

64.242

0,62

66.568

0,57

Not Detailed Non-Current Assets

0

0,00

0

0,00

0

0,00

0

0,00

Long-term Receivable

25

0,00

0

0,00

0

0,00

10

0,00

Financial Assets

0

0,00

0

0,00

0

0,00

0

0,00

Tangible Fixed Assets (net)

33.092.991

0,51

33.805.661

0,45

64.242

0,62

66.429

0,57

Intangible Assets

0

0,00

0

0,00

0

0,00

0

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

0

0,00

129

0,00

TOTAL ASSETS

64.656.329

1,00

75.115.385

1,00

104.146

1,00

116.973

1,00

CURRENT LIABILITIES

13.632.202

0,21

24.200.213

0,32

22.296

0,21

35.837

0,31

Not Detailed Current Liabilities

0

0,00

0

0,00

0

0,00

0

0,00

Financial Loans

9.057.983

0,14

12.007.199

0,16

12.140

0,12

25.358

0,22

Accounts Payable

1.995.334

0,03

9.837.387

0,13

7.057

0,07

3.549

0,03

Loans from Shareholders

0

0,00

0

0,00

0

0,00

0

0,00

Other Short-term Payable

1.968.921

0,03

115.317

0,00

1.840

0,02

4.842

0,04

Advances from Customers

0

0,00

994.423

0,01

0

0,00

0

0,00

Accumulated Construction Income

0

0,00

0

0,00

0

0,00

0

0,00

Taxes Payable

113.092

0,00

607.868

0,01

562

0,01

1.082

0,01

Provisions

0

0,00

0

0,00

0

0,00

0

0,00

Other Current Liabilities

496.872

0,01

638.019

0,01

697

0,01

1.006

0,01

LONG-TERM LIABILITIES

18.663.248

0,29

11.565.831

0,15

32.123

0,31

25.198

0,22

Not Detailed Long-term Liabilities

0

0,00

0

0,00

0

0,00

0

0,00

Financial Loans

18.663.248

0,29

11.565.831

0,15

32.123

0,31

25.198

0,22

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

32.360.879

0,50

39.349.341

0,52

49.727

0,48

55.938

0,48

Not Detailed Stockholders' Equity

0

0,00

0

0,00

0

0,00

0

0,00

Paid-in Capital

17.500.000

0,27

35.000.000

0,47

40.000

0,38

40.000

0,34

Cross Shareholding Adjustment of Capital

0

0,00

0

0,00

0

0,00

0

0,00

Inflation Adjustment of Capital

14.458.461

0,22

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

13.600.454

0,21

15.391.578

0,20

4.350

0,04

9.726

0,08

Revaluation Fund

0

0,00

0

0,00

0

0,00

0

0,00

Accumulated Losses(-)

-15.306.231

-0,24

-15.306.231

-0,20

0

0,00

0

0,00

Net Profit (loss)

2.108.195

0,03

4.263.994

0,06

5.377

0,05

6.212

0,05

TOTAL LIABILITIES AND EQUITY

64.656.329

1,00

75.115.385

1,00

104.146

1,00

116.973

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. 

 

In the sub-items of "Account Receivable", TL thousand 0 is "Doubtful Trade Receivables" at the last balance sheet. 

 

The details of "Other Receivable" figure at the last balance sheet (TL Thousand): Due From Shareholders:0, Due From Participations:0, Due From Affiliated Companies:  0, Due From Personnel:0, Other Miscellaneous Receivables:363, Other Receivable Total:363             

 

TL thousand 0 of "Tax Payable" is due to "Overdue, Delayed or Deferred Tax by Installments and Other Liabilities" at the last balance sheet. 

 

At the last income statement TL thousand 8.138 of the other expenses is due to "Loss from Foreign Currency Exchange" .                                                                                                                                                                                             

 

 

INCOME STATEMENTS

 

 

(2010) TL

 

(2011) TL

 

(2012) TL Thousand

 

(2013) TL Thousand

 

Net Sales

71.763.024

1,00

128.648.691

1,00

139.837

1,00

154.073

1,00

Cost of Goods Sold

65.435.812

0,91

112.252.540

0,87

130.868

0,94

135.711

0,88

Gross Profit

6.327.212

0,09

16.396.151

0,13

8.969

0,06

18.362

0,12

Operating Expenses

793.878

0,01

1.959.949

0,02

2.278

0,02

3.044

0,02

Operating Profit

5.533.334

0,08

14.436.202

0,11

6.691

0,05

15.318

0,10

Other Income

661.921

0,01

345.072

0,00

1.529

0,01

1.676

0,01

Other Expenses

2.934.715

0,04

8.442.518

0,07

433

0,00

8.266

0,05

Financial Expenses

1.152.345

0,02

1.292.564

0,01

1.459

0,01

1.609

0,01

Minority Interests

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

Profit (loss) Before Tax

2.108.195

0,03

5.046.192

0,04

6.328

0,05

7.119

0,05

Tax Payable

0

0,00

782.198

0,01

951

0,01

907

0,01

Postponed Tax Gain

0

0,00

0

0,00

0

0,00

0

0,00

Net Profit (loss)

2.108.195

0,03

4.263.994

0,03

5.377

0,04

6.212

0,04

 

 

FINANCIAL RATIOS

 

 

(2010)

(2011)

(2012)

(2013)

LIQUIDITY RATIOS

 

Current Ratio

2,32

1,71

1,79

1,41

Acid-Test Ratio

2,08

1,58

1,61

1,19

Cash Ratio

0,87

0,17

0,26

0,09

ASSET STRUCTURE RATIOS

 

Inventory/Total Assets

0,05

0,04

0,03

0,05

Short-term Receivable/Total Assets

0,26

0,45

0,29

0,34

Tangible Assets/Total Assets

0,51

0,45

0,62

0,57

TURNOVER RATIOS

 

Inventory Turnover

20,48

42,15

36,31

21,60

Stockholders' Equity Turnover

2,22

3,27

2,81

2,75

Asset Turnover

1,11

1,71

1,34

1,32

FINANCIAL STRUCTURE

 

Stockholders' Equity/Total Assets

0,50

0,52

0,48

0,48

Current Liabilities/Total Assets

0,21

0,32

0,21

0,31

Financial Leverage

0,50

0,48

0,52

0,52

Gearing Percentage

1,00

0,91

1,09

1,09

PROFITABILITY RATIOS

 

Net Profit/Stockholders' Eq.

0,07

0,11

0,11

0,11

Operating Profit Margin

0,08

0,11

0,05

0,10

Net Profit Margin

0,03

0,03

0,04

0,04

Interest Cover

2,83

4,90

5,34

5,42

COLLECTION-PAYMENT

 

Average Collection Period (days)

79,62

91,91

73,60

91,68

Average Payable Period (days)

10,98

31,55

19,41

9,41

WORKING CAPITAL

17931111,00

17109511,00

17608,00

14568,00

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.59.03

UK Pound

1

Rs.98.91

Euro

1

Rs.80.34

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

NIS

 

               

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

 

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NB

New Business

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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.