MIRA INFORM REPORT

Report No. :	333908
Report Date :	30.07.2015

IDENTIFICATION DETAILS

Name :	ISKEFE DERI SANAYI VE TICARET A.S.

Registered Office :	Aydinli Orhanli Mevki Istanbul Organize Deri Sanayi Bolgesi 3 Nolu Yol K-3 Parsel Tuzla Istanbuls

Country :	Turkey

Financials (as on) :	31.12.2014

Date of Incorporation :	17.04.2002

Com. Reg. No.:	474513

Legal Form :	Joint Stock Company

Line of Business :	Processing of leather.

No. of Employee :	140

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory

Payment Behaviour :	Slow but correct

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, 2015

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 region to market. Several gas pipeline projects also are moving forward to help transport Caspian gas to Europe through Turkey, which over the long term will help address Turkey's dependence on imported oil and gas, which currently meets 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. Two rating agencies upgraded Turkey's debt to investment grade in 2012 and 2013, and Turkey's public sector debt to GDP ratio fell to 33% in 2014. The stock value of FDI reached nearly $195 billion at year-end 2014. Despite these positive trends, GDP growth dropped to 4.4% in 2013 and 2.9% in 2014. Growth slowed considerably in the last quarter of 2014, largely due to lackluster consumer demand both domestically and in Europe, Turkey’s most important export market. High interest rates have also contributed to the slowdown in growth, as Turkey sharply increased interest rates in January 2014 in order to strengthen the country’s currency and reduce inflation. Turkey then cut rates in February 2015 in a bid to spur economic growth. It is clear from these developments that the Turkish economy retains significant weaknesses. Specifically, 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. Turkey also remains dependent on often volatile, short-term investment to finance its large current account deficit.

Source : CIA

NOTES

Full name of the firm was missing at your inquiry.

COMPANY IDENTIFICATION

NAME	:	ISKEFE DERI SANAYI VE TICARET A.S.
HEAD OFFICE ADDRESS	:	Aydinli Orhanli Mevki Istanbul Organize Deri Sanayi Bolgesi 3 Nolu Yol K-3 Parsel Tuzla Istanbul / Turkey
PHONE NUMBER	:	90-216-394 02 72
FAX NUMBER	:	90-216-394 02 70
WEB-ADDRESS	:	www.iskefe.com
E-MAIL	:	info@iskefederi.com

LEGAL STATUS AND HISTORY


TAX OFFICE	:	Anadolu Kurumlar
TAX NO	:	4800273864
REGISTRATION NUMBER	:	474513
REGISTERED OFFICE	:	Istanbul Chamber of Commerce
DATE ESTABLISHED	:	17.04.2002
ESTABLISHMENT GAZETTE DATE/NO	:	26.04.2002/5535
LEGAL FORM	:	Joint Stock Company
TYPE OF COMPANY	:	Private
REGISTERED CAPITAL	:	TL 11.000.000

HISTORY

Previous Registered Capital	:	TL 5.000.000
Changed On	:	22.11.2013 (Commercial Gazette Date /Number 28.11.2013/ 8453)

OWNERSHIP / MANAGEMENT

SHAREHOLDERS

Bilal Alkoc	100 %

BOARD OF DIRECTORS

Bilal Alkoc

Chairman

OPERATIONS

BUSINESS ACTIVITIES

Processing of leather.

NACE CODE

DC.19.10

NUMBER OF EMPLOYEES

140

NET SALES

33.708.851 TL	(2011)
37.748.574 TL	(2012)
74.277 TL Thousand	(2013)
88.864 TL Thousand	(2014)
19.057 TL Thousand	(01.01-31.03.2015)

IMPORT COUNTRIES

Italy

South Africa

Belgium

Germany

MERCHANDISE IMPORTED

Chemicals

Leather

HEAD OFFICE ADDRESS

Aydinli Orhanli Mevki Istanbul Organize Deri Sanayi Bolgesi 3 Nolu Yol K-3 Parsel Tuzla Istanbul / Turkey

BRANCHES

Processing Plant : Gerede Deri Organize Sanayi Bolgesi Bolu/Turkey

Processing Plant : Deri Organize Sanayi Bolgesi Bursa/Turkey

Head Office/Processing Plant : Aydinli Orhanli Mevki Istanbul Organize Deri Sanayi Bolgesi 3 Nolu Yol K-3 Parsel Tuzla Istanbul/Turkey

TREND OF BUSINESS	:	There was an upwards trend in 2014.
SIZE OF BUSINESS	:	Giant

FINANCE

MAIN DEALING BANKS

Albaraka Turk Katilim Bankasi Kaynarca Branch

Asya Katilim Bankasi Tuzla Branch

Denizbank Tuzla Branch

Kuveyt Turk Katilim Bankasi Tuzla Branch

T. Finans Katilim Bankasi Kavacik Branch

T. Garanti Bankasi Tuzla Branch

T. Is Bankasi Tuzla Deri 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

	(2011) TL	(2012) TL	(2013) TL Thousand	(2014) TL Thousand	(01.01-31.03.2015) TL Thousand
Net Sales	33.708.851	37.748.574	74.277	88.864	19.057
Profit (Loss) Before Tax	1.245.715	1.344.599	867	977	202
Stockholders' Equity	11.499.881	12.543.012	14.203	14.895
Total Assets	31.710.889	38.737.304	74.607	82.604
Current Assets	17.318.974	26.950.195	43.472	60.088
Non-Current Assets	14.391.915	11.787.109	31.135	22.516
Current Liabilities	12.917.127	23.820.883	26.361	24.804
Long-Term Liabilities	7.293.881	2.373.409	34.043	42.905
Gross Profit (loss)	3.617.757	2.938.523	10.086	10.879	1.356
Operating Profit (loss)	2.713.923	1.680.299	7.663	6.745	1.077
Net Profit (loss)	975.147	1.043.131	661	693	202

COMMENT ON FINANCIAL POSITION

Capitalization	Insufficient As of 31.12.2014
Liquidity	Satisfactory As of 31.12.2014
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 2011 In Order Net Profitability in 2011 In Order Operating Profitability in 2012 In Order Net Profitability in 2012 High Operating Profitability in 2013 Low Net Profitability in 2013 Good Operating Profitability in 2014 Low Net Profitability in 2014 Good Operating Profitability (01.01-31.03.2015) Low Net Profitability (01.01-31.03.2015)
Gap between average collection and payable periods	Unfavorable in 2014
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
( 2013 )	6,97 %	1,9179	2,5530	3,0178
( 2014 )	6,36 %	2,1891	2,8989	3,6060
( 01.01-31.03.2015)	2,60 %	2,4709	2,8023	3,7626
( 01.01-30.06.2015)	5,49 %	2,5568	2,8727	3,9250

BALANCE SHEETS

	( 31.12.2011 ) TL		( 31.12.2012 ) TL		( 31.12.2013 ) TL Thousand		( 31.12.2014 ) TL Thousand
CURRENT ASSETS	17.318.974	0,55	26.950.195	0,70	43.472	0,58	60.088	0,73
Not Detailed Current Assets	0	0,00	0	0,00	0	0,00	0	0,00
Cash and Banks	20.715	0,00	418.153	0,01	3.516	0,05	2.086	0,03
Marketable Securities	0	0,00	0	0,00	0	0,00	0	0,00
Account Receivable	12.228.682	0,39	21.650.641	0,56	30.676	0,41	48.200	0,58
Other Receivable	0	0,00	3.361.003	0,09	0	0,00	0	0,00
Inventories	4.277.428	0,13	150.183	0,00	2.667	0,04	1.890	0,02
Advances Given	0	0,00	0	0,00	267	0,00	1.167	0,01
Accumulated Construction Expense	0	0,00	0	0,00	0	0,00	0	0,00
Other Current Assets	792.149	0,02	1.370.215	0,04	6.346	0,09	6.745	0,08
NON-CURRENT ASSETS	14.391.915	0,45	11.787.109	0,30	31.135	0,42	22.516	0,27
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	0	0,00
Financial Assets	0	0,00	0	0,00	0	0,00	0	0,00
Tangible Fixed Assets (net)	13.125.138	0,41	9.513.384	0,25	19.276	0,26	8.330	0,10
Intangible Assets	823.483	0,03	1.561.964	0,04	10.285	0,14	11.762	0,14
Deferred Tax Assets	0	0,00	0	0,00	0	0,00	0	0,00
Other Non-Current Assets	443.294	0,01	711.761	0,02	1.574	0,02	2.424	0,03
TOTAL ASSETS	31.710.889	1,00	38.737.304	1,00	74.607	1,00	82.604	1,00
CURRENT LIABILITIES	12.917.127	0,41	23.820.883	0,61	26.361	0,35	24.804	0,30
Not Detailed Current Liabilities	0	0,00	0	0,00	0	0,00	0	0,00
Financial Loans	1.955.727	0,06	9.343.157	0,24	5	0,00	0	0,00
Accounts Payable	10.465.238	0,33	12.333.124	0,32	21.466	0,29	22.279	0,27
Loans from Shareholders	0	0,00	0	0,00	0	0,00	0	0,00
Other Short-term Payable	82.735	0,00	59.284	0,00	154	0,00	221	0,00
Advances from Customers	0	0,00	1.480.581	0,04	2.553	0,03	0	0,00
Accumulated Construction Income	0	0,00	0	0,00	0	0,00	0	0,00
Taxes Payable	142.859	0,00	303.269	0,01	2.183	0,03	2.020	0,02
Provisions	270.568	0,01	301.468	0,01	0	0,00	284	0,00
Other Current Liabilities	0	0,00	0	0,00	0	0,00	0	0,00
LONG-TERM LIABILITIES	7.293.881	0,23	2.373.409	0,06	34.043	0,46	42.905	0,52
Not Detailed Long-term Liabilities	0	0,00	0	0,00	0	0,00	0	0,00
Financial Loans	7.293.881	0,23	2.373.409	0,06	34.043	0,46	42.905	0,52
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	11.499.881	0,36	12.543.012	0,32	14.203	0,19	14.895	0,18
Not Detailed Stockholders' Equity	0	0,00	0	0,00	0	0,00	0	0,00
Paid-in Capital	5.000.000	0,16	5.000.000	0,13	8.824	0,12	8.824	0,11
Cross Shareholding Adjustment of Capital	0	0,00	0	0,00	0	0,00	0	0,00
Inflation Adjustment of Capital	236.962	0,01	236.962	0,01	236	0,00	236	0,00
Equity of Consolidated Firms	0	0,00	0	0,00	0	0,00	0	0,00
Reserves	2.804.835	0,09	3.779.982	0,10	4.822	0,06	5.482	0,07
Revaluation Fund	2.823.109	0,09	2.823.109	0,07	0	0,00	0	0,00
Accumulated Losses(-)	-340.172	-0,01	-340.172	-0,01	-340	0,00	-340	0,00
Net Profit (loss)	975.147	0,03	1.043.131	0,03	661	0,01	693	0,01
TOTAL LIABILITIES AND EQUITY	31.710.889	1,00	38.737.304	1,00	74.607	1,00	82.604	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.

TL thousand 637 of "Tax Payable" is due to "Overdue, Delayed or Deferred Tax by Installments and Other Liabilities" at the last balance sheet.

INCOME STATEMENTS

	(2011) TL		(2012) TL		(2013) TL Thousand		(2014) TL Thousand		(01.01-31.03.2015) TL Thousand
Net Sales	33.708.851	1,00	37.748.574	1,00	74.277	1,00	88.864	1,00	19.057	1,00
Cost of Goods Sold	30.091.094	0,89	34.810.051	0,92	64.191	0,86	77.985	0,88	17.701	0,93
Gross Profit	3.617.757	0,11	2.938.523	0,08	10.086	0,14	10.879	0,12	1.356	0,07
Operating Expenses	903.834	0,03	1.258.224	0,03	2.423	0,03	4.134	0,05	279	0,01
Operating Profit	2.713.923	0,08	1.680.299	0,04	7.663	0,10	6.745	0,08	1.077	0,06
Other Income	253.138	0,01	1.905.267	0,05	690	0,01	2.885	0,03	99	0,01
Other Expenses	1.428.161	0,04	1.168.311	0,03	5.749	0,08	5.966	0,07	233	0,01
Financial Expenses	293.185	0,01	1.072.656	0,03	1.737	0,02	2.687	0,03	741	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	1.245.715	0,04	1.344.599	0,04	867	0,01	977	0,01	202	0,01
Tax Payable	270.568	0,01	301.468	0,01	206	0,00	284	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)	975.147	0,03	1.043.131	0,03	661	0,01	693	0,01	202	0,01

FINANCIAL RATIOS

	(2011)	(2012)	(2013)	(2014)
LIQUIDITY RATIOS
Current Ratio	1,34	1,13	1,65	2,42
Acid-Test Ratio	0,95	1,07	1,30	2,03
Cash Ratio	0,00	0,02	0,13	0,08
ASSET STRUCTURE RATIOS
Inventory/Total Assets	0,13	0,00	0,04	0,02
Short-term Receivable/Total Assets	0,39	0,65	0,41	0,58
Tangible Assets/Total Assets	0,41	0,25	0,26	0,10
TURNOVER RATIOS
Inventory Turnover	7,03	231,78	24,07	41,26
Stockholders' Equity Turnover	2,93	3,01	5,23	5,97
Asset Turnover	1,06	0,97	1,00	1,08
FINANCIAL STRUCTURE
Stockholders' Equity/Total Assets	0,36	0,32	0,19	0,18
Current Liabilities/Total Assets	0,41	0,61	0,35	0,30
Financial Leverage	0,64	0,68	0,81	0,82
Gearing Percentage	1,76	2,09	4,25	4,55
PROFITABILITY RATIOS
Net Profit/Stockholders' Eq.	0,08	0,08	0,05	0,05
Operating Profit Margin	0,08	0,04	0,10	0,08
Net Profit Margin	0,03	0,03	0,01	0,01
Interest Cover	5,25	2,25	1,50	1,36
COLLECTION-PAYMENT
Average Collection Period (days)	130,60	206,48	148,68	195,26
Average Payable Period (days)	125,20	127,55	120,39	102,85
WORKING CAPITAL	4401847,00	3129312,00	17111,00	35284,00

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.89
UK Pound	1	Rs.99.71
Euro	1	Rs.70.63

INFORMATION DETAILS

Analysis Done by :	SAN

Report Prepared by :	ANK

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.