MIRA INFORM REPORT

 

 

Report No. :

321353

Report Date :

13.05.2015

 

IDENTIFICATION DETAILS

 

Name :

BAYLAN OLCU ALETLERI SANAYI VE TICARET LTD. STI.

 

 

Registered Office :

Ataturk Organize Sanayi Bolgesi 10032 Sok. No:16 Cigli Izmir

 

 

Country :

Turkey

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

1991

 

 

Com. Reg. No.:

62260

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacture and Trade of Water Meter.

 

 

No. of Employees :

550

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Turkey

B1

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 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. Growth has dropped to roughly 2-4% in 2013-14. 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 2014, reflecting Turkey's robust growth even in the face of economic turmoil in Europe, the source of most of Turkey's foreign direct investment. 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 IDENTIFICATION

 

 

NAME

:

BAYLAN OLCU ALETLERI SANAYI VE TICARET LTD. STI.

HEAD OFFICE ADDRESS

:

Ataturk Organize Sanayi Bolgesi 10032 Sok. No:16 Cigli Izmir / Turkey

PHONE NUMBER

:

90-232-376 77 57

 

FAX NUMBER

:

90-232-376 77 59

 

WEB-ADDRESS

:

www.baylanwatermeters.com

E-MAIL

:

info@baylanwatermeters.com

 

LEGAL STATUS AND HISTORY

 

 

TAX OFFICE

:

Hasan Tahsin

TAX NO

:

1550009971

REGISTRATION NUMBER

:

62260

REGISTERED OFFICE

:

Izmir Chamber of Commerce

DATE ESTABLISHED

:

1991

LEGAL FORM

:

Limited Company

TYPE OF COMPANY

:

Private

REGISTERED CAPITAL

:

TL   30.000.000

 

HISTORY

:

Previous Registered Capital

:

TL 3.500.000

Changed On

:

29.04.2009 (Commercial Gazette Date /Number 11.05.2009/ 7308)

Previous Registered Capital

:

TL 10.000.000

Changed On

:

23.11.2009 (Commercial Gazette Date /Number 01.12.2009/ 7448)

Previous Registered Capital

:

TL 15.000.000

Changed On

:

17.10.2011 (Commercial Gazette Date /Number 21.10.2011/ 7926)

Previous Registered Capital

:

TL 20.000.000

Changed On

:

04.06.2014 (Commercial Gazette Date /Number 09.06.2014/ 8586)

Previous Address

:

Ataturk Organize Sanayi Bolgesi 10046 Sok. No:14 Cigli Izmir

Changed On

:

09.09.2014 (Commercial Gazette Date /Number 12.09.2014/ 8652)

 

 

OWNERSHIP / MANAGEMENT

 

 

SHAREHOLDERS

:

Mehmet Akif Baylan

50 %

Ibrahim Baylan

40 %

Erman Baylan

5 %

Osman Baylan

5 %

 

 

DIRECTORS

:

Erman Baylan                                                                                                                                                                                                                                                                                   

 

Osman Baylan                                                                                                                                                                                                                                                                                   

 

 

 

OPERATIONS

 

 

BUSINESS ACTIVITIES

:

Manufacture and trade of water meter.

 

NACE CODE

:

DL.33.20

 

TRADEMARKS OWNED

:

Baylan

 

NUMBER OF EMPLOYEES

:

550

 

 

NET SALES

:

16.876.696 TL

(2005) 

29.366.747 TL

(2006) 

34.057.143 TL

(2007) 

46.238.121 TL

(2008) 

50.832.436 TL

(2009) 

65.565.789 TL

(2010) 

72.909.874 TL

(2011) 

94.666 TL Thousand

(2012) 

91.690 TL Thousand

(2013) 

71.782 TL Thousand

(01.01-30.09.2014) 

 

 

IMPORT COUNTRIES

:

Israel

Italy

Germany

China

India

 

MERCHANDISE IMPORTED

:

Bell metal bullion

Mechanism of water meter

Raw materials

Spare parts

 

EXPORT VALUE

:

4.577.870 TL

(2005)

8.888.434 TL

(2006)

9.351.347 TL

(2007)

19.930.061 TL

(2008)

21.041.244 TL

(2009)

27.261.487 TL

(2010)

31.511.381 TL

(2011)

41.112.912 TL

(2012)

47.168.948 TL

(2013)

31.897 TL Thousand

(01.01-30.09.2014)

 

 

 

 

EXPORT COUNTRIES

:

U.K.

Egypt

Iran

France

Northern Cyprus Turkish Republic

Sri Lanka

Bangladesh

India

Saudi Arabia

Colombia

Jordan

Cameroon

Libya

Bosnia and Herzegovina

Georgia

Greece

Denmark

Russia

 

MERCHANDISE  EXPORTED

:

Water meters

 

HEAD OFFICE ADDRESS

:

Ataturk Organize Sanayi Bolgesi 10032 Sok. No:16 Cigli  Izmir / Turkey (owned)

 

BRANCHES

:

Workshop  :  Ata Mah. 2. Sok. No:7 Aydin/Turkey (owned by shareholder(s))

 

Head Office/Factory  :  10032 Sok. No:16 Ataturk Organize Sanayi Bolgesi Cigli Izmir/Turkey (owned)

                                                                                

 

 

TREND OF BUSINESS

:

There was a decline at business volume in nominal terms in 2013. There appears a slowdown at business volume in real terms in 1.1 - 30.9.2014.

SIZE OF BUSINESS

:

Giant

 

FINANCE

 

 

MAIN DEALING BANKS

:

Akbank Izmir Branch

Garanti Bankasi Izmir Ticari Branch

T. Halk Bankasi Ataturk Organize Sanayi Branch

T. Vakiflar Bankasi AOSB Branch

Yapi ve Kredi Bankasi Ataturk Organize Sanayi Branch

 

CREDIT FACILITIES

:

The subject company is making 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

(01.01-30.09.2014) TL Thousand

Net Sales

65.565.789

72.909.874

94.666

91.690

71.782

Profit (Loss) Before Tax

5.584.445

5.626.479

3.940

6.227

-138

Stockholders' Equity

27.711.944

37.065.894

40.286

45.945

 

Total Assets

41.825.699

65.211.460

73.228

74.400

 

Current Assets

25.000.265

40.406.731

46.781

40.276

 

Non-Current Assets

16.825.434

24.804.729

26.447

34.124

 

Current Liabilities

14.113.755

28.145.566

32.942

28.455

 

Long-Term Liabilities

0

0

0

0

 

Gross Profit (loss)

9.462.189

8.690.920

12.356

9.978

7.603

Operating Profit (loss)

5.725.471

3.903.019

4.980

3.701

3.068

Net Profit (loss)

4.456.831

4.485.372

3.088

5.661

-138

 

 

 

 

COMMENT ON FINANCIAL POSITION

 

THE DETAILS OF THE CAPITAL INCREASE  AFTER LAST BALANCE SHEET

 

:

Cash Part

:10.000.000 TL

Equity Part

:

Payment Due Date

:04.06.2014

 

Capitalization

High

Remarks on Capitalization

A part of total liabilities and equity consist of loans from shareholders rather than liabilities to third parties indicating low indebtedness to third parties.

 

There has been capital increase and net loss after the last balance sheet date. The capital increase is expected to have more effect then the loss at the equity total since the last balance sheet date.

 

Liquidity

Satisfactory As of 31.12.2013

Remarks On Liquidity

A part of current liabilities consist of short-term loans from shareholders rather than liabilities to third parties.

 

The unfavorable gap between average collection and average payable period has an adverse effect on liquidity.

 

Profitability

Good Operating Profitability  in 2010

High Net Profitability  in 2010

In Order Operating Profitability  in 2011

High Net Profitability  in 2011

In Order Operating Profitability  in 2012

In Order Net Profitability  in 2012

In Order Operating Profitability  in 2013

High Net Profitability  in 2013

In Order Operating Profitability (01.01-30.09.2014)

Net Loss (01.01-30.09.2014)

 

Gap between average collection and payable periods

Unfavorable in 2013

General Financial Position

Fair

 

 

 

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

 ( 2012 )

2,45 %

1,7995

2,3265

2,8593

 ( 2013 )

6,97 %

1,9179

2,5530

3,0178

 ( 01.01-30.09.2014)

7,24 %

2,1706

2,9323

3,6222

 ( 2014 )

6,36 %

2,1891

2,8989

3,6060

 ( 01.01-30.04.2015)

4,06 %

2,5088

2,8371

3,8329

 

 

BALANCE SHEETS

 

 

 ( 31.12.2010 )  TL

 

 ( 31.12.2011 )  TL

 

 ( 31.12.2012 )  TL Thousand

 

 ( 31.12.2013 )  TL Thousand

 

 

 

CURRENT ASSETS

25.000.265

0,60

40.406.731

0,62

46.781

0,64

40.276

0,54

 

 

Not Detailed Current Assets

0

0,00

0

0,00

0

0,00

0

0,00

 

 

Cash and Banks

4.010.920

0,10

1.511.292

0,02

1.418

0,02

2.891

0,04

 

 

Marketable Securities

50.690

0,00

47.350

0,00

51

0,00

0

0,00

 

 

Account Receivable

15.832.766

0,38

30.757.741

0,47

35.806

0,49

30.173

0,41

 

 

Other Receivable

0

0,00

0

0,00

0

0,00

0

0,00

 

 

Inventories

4.225.163

0,10

6.052.148

0,09

8.403

0,11

6.363

0,09

 

 

Advances Given

0

0,00

686.998

0,01

3

0,00

2

0,00

 

 

Accumulated Construction Expense

0

0,00

0

0,00

0

0,00

0

0,00

 

 

Other Current Assets

880.726

0,02

1.351.202

0,02

1.100

0,02

847

0,01

 

 

NON-CURRENT ASSETS

16.825.434

0,40

24.804.729

0,38

26.447

0,36

34.124

0,46

 

 

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)

16.642.993

0,40

24.592.946

0,38

26.105

0,36

33.686

0,45

 

 

Intangible Assets

84.035

0,00

90.730

0,00

199

0,00

249

0,00

 

 

Deferred Tax Assets

0

0,00

0

0,00

0

0,00

0

0,00

 

 

Other Non-Current Assets

98.406

0,00

121.053

0,00

143

0,00

189

0,00

 

 

TOTAL ASSETS

41.825.699

1,00

65.211.460

1,00

73.228

1,00

74.400

1,00

 

 

CURRENT LIABILITIES

14.113.755

0,34

28.145.566

0,43

32.942

0,45

28.455

0,38

 

 

Not Detailed Current Liabilities

0

0,00

0

0,00

257

0,00

0

0,00

 

 

Financial Loans

784.889

0,02

5.641.809

0,09

1.916

0,03

1.896

0,03

 

 

Accounts Payable

7.948.901

0,19

13.477.126

0,21

16.555

0,23

7.307

0,10

 

 

Loans from Shareholders

3.121.495

0,07

7.218.723

0,11

11.694

0,16

17.570

0,24

 

 

Other Short-term Payable

442.782

0,01

225.596

0,00

655

0,01

816

0,01

 

 

Advances from Customers

517.644

0,01

340.096

0,01

321

0,00

321

0,00

 

 

Accumulated Construction Income

0

0,00

0

0,00

0

0,00

0

0,00

 

 

Taxes Payable

271.897

0,01

650.784

0,01

692

0,01

472

0,01

 

 

Provisions

330.702

0,01

388.526

0,01

852

0,01

73

0,00

 

 

Other Current Liabilities

695.445

0,02

202.906

0,00

0

0,00

0

0,00

 

 

LONG-TERM LIABILITIES

0

0,00

0

0,00

0

0,00

0

0,00

 

 

Not Detailed Long-term Liabilities

0

0,00

0

0,00

0

0,00

0

0,00

 

 

Financial Loans

0

0,00

0

0,00

0

0,00

0

0,00

 

 

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

27.711.944

0,66

37.065.894

0,57

40.286

0,55

45.945

0,62

 

 

Not Detailed Stockholders' Equity

0

0,00

0

0,00

0

0,00

0

0,00

 

 

Paid-in Capital

15.000.000

0,36

19.868.577

0,30

20.000

0,27

20.000

0,27

 

 

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

8.255.113

0,20

12.711.945

0,19

17.198

0,23

20.284

0,27

 

 

Revaluation Fund

0

0,00

0

0,00

0

0,00

0

0,00

 

 

Accumulated Losses(-)

0

0,00

0

0,00

0

0,00

0

0,00

 

 

Net Profit (loss)

4.456.831

0,11

4.485.372

0,07

3.088

0,04

5.661

0,08

 

 

TOTAL LIABILITIES AND EQUITY

41.825.699

1,00

65.211.460

1,00

73.228

1,00

74.400

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 4.009 is "Doubtful Trade Receivables" and -TL thousand 713 is "Provision for Doubtful Trade Receivables" at the last balance sheet.

 

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 3.301 of the other expenses is due to "Provision Expenses".

 

 

INCOME STATEMENTS

 

 

(2010) TL

 

(2011) TL

 

(2012) TL Thousand

 

(2013) TL Thousand

 

(01.01-30.09.2014) TL Thousand

 

Net Sales

65.565.789

1,00

72.909.874

1,00

94.666

1,00

91.690

1,00

71.782

1,00

Cost of Goods Sold

56.103.600

0,86

64.218.954

0,88

82.310

0,87

81.712

0,89

64.179

0,89

Gross Profit

9.462.189

0,14

8.690.920

0,12

12.356

0,13

9.978

0,11

7.603

0,11

Operating Expenses

3.736.718

0,06

4.787.901

0,07

7.376

0,08

6.277

0,07

4.535

0,06

Operating Profit

5.725.471

0,09

3.903.019

0,05

4.980

0,05

3.701

0,04

3.068

0,04

Other Income

1.495.127

0,02

3.763.725

0,05

1.180

0,01

5.111

0,06

1.481

0,02

Other Expenses

1.410.821

0,02

1.703.498

0,02

1.774

0,02

2.395

0,03

4.580

0,06

Financial Expenses

225.332

0,00

336.767

0,00

446

0,00

190

0,00

107

0,00

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

5.584.445

0,09

5.626.479

0,08

3.940

0,04

6.227

0,07

-138

0,00

Tax Payable

1.127.614

0,02

1.141.107

0,02

852

0,01

566

0,01

0

0,00

Postponed Tax Gain

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Net Profit (loss)

4.456.831

0,07

4.485.372

0,06

3.088

0,03

5.661

0,06

-138

0,00

 

FINANCIAL RATIOS

 

 

(2010)

(2011)

(2012)

(2013)

 

LIQUIDITY RATIOS

 

 

Current Ratio

1,77

1,44

1,42

1,42

 

Acid-Test Ratio

1,41

1,15

1,13

1,16

 

Cash Ratio

0,29

0,06

0,04

0,10

 

ASSET STRUCTURE RATIOS

 

 

Inventory/Total Assets

0,10

0,09

0,11

0,09

 

Short-term Receivable/Total Assets

0,38

0,47

0,49

0,41

 

Tangible Assets/Total Assets

0,40

0,38

0,36

0,45

 

TURNOVER RATIOS

 

 

Inventory Turnover

13,28

10,61

9,80

12,84

 

Stockholders' Equity Turnover

2,37

1,97

2,35

2,00

 

Asset Turnover

1,57

1,12

1,29

1,23

 

FINANCIAL STRUCTURE

 

 

Stockholders' Equity/Total Assets

0,66

0,57

0,55

0,62

 

Current Liabilities/Total Assets

0,34

0,43

0,45

0,38

 

Financial Leverage

0,34

0,43

0,45

0,38

 

Gearing Percentage

0,51

0,76

0,82

0,62

 

PROFITABILITY RATIOS

 

 

Net Profit/Stockholders' Eq.

0,16

0,12

0,08

0,12

 

Operating Profit Margin

0,09

0,05

0,05

0,04

 

Net Profit Margin

0,07

0,06

0,03

0,06

 

Interest Cover

25,78

17,71

9,83

33,77

 

COLLECTION-PAYMENT

 

 

Average Collection Period (days)

86,93

151,87

136,16

118,47

 

Average Payable Period (days)

51,01

75,55

72,41

32,19

 

WORKING CAPITAL

10886510,00

12261165,00

13839,00

11821,00

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.64.20

UK Pound

1

Rs.100.03

Euro

1

Rs.71.91

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

TPT

 

               

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.