MIRA INFORM REPORT

 

 

Report No. :

342751

Report Date :

03.10.2015

 

IDENTIFICATION DETAILS

 

Name :

NURSAN METALURJI ENDUSTRISI A.S.

 

 

Registered Office :

Karsi Mah. OSB Sehit Mustafa Avci Cad. No:5 Payas Hatay 

 

 

Country :

Turkey

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

03.06.2004

 

 

Com. Reg. No.:

3160

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Melting iron scrap and manufacturing construction iron and steel log.

 

 

No. of Employees :

487

 

 

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, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 has brought 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 Foreign Direct Investment 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.

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

 

COMPANY IDENTIFICATION

 

 

NAME

:

NURSAN METALURJI ENDUSTRISI A.S.

HEAD OFFICE ADDRESS

:

Karsi Mah. OSB Sehit Mustafa Avci Cad. No:5 Payas Hatay / Turkey

PHONE NUMBER

:

90-326-755 99 20

 

FAX NUMBER

:

90-326-755 99 31

 

WEB-ADDRESS

:

www.nursan.com

E-MAIL

:

metalurji@nursan.com

 

 

LEGAL STATUS AND HISTORY

 

 

TAX OFFICE

:

Dortyol

TAX NO

:

6320278760

REGISTRATION NUMBER

:

3160

REGISTERED OFFICE

:

Dortyol Chamber of Commerce and Industry

DATE ESTABLISHED

:

03.06.2004

ESTABLISHMENT GAZETTE DATE/NO

:

08.06.2004/6066

LEGAL FORM

:

Joint Stock Company

TYPE OF COMPANY

:

Private

 

REGISTERED CAPITAL

:

TL   222.000.000

PAID-IN CAPITAL

:

TL   222.000.000

HISTORY

:

Previous Registered Capital

:

TL 50.000.000

Changed On

:

09.06.2009 (Commercial Gazette Date /Number 12.06.2009/ 7331)

Previous Registered Capital

:

TL 70.000.000

Changed On

:

25.09.2009 (Commercial Gazette Date /Number 30.09.2009/ 7407)

Previous Registered Capital

:

TL 100.000.000

Changed On

:

23.03.2012 (Commercial Gazette Date /Number 30.03.2012/ 8038)

Previous Registered Capital

:

TL 188.000.000

Changed On

:

07.08.2012 (Commercial Gazette Date /Number 10.08.2012/ 8131)

Previous Address

:

Payas Organize Sanayi Bolgesi Sincan Yolu Uzeri Payas Dortyol / Hatay

Changed On

:

18.11.2014 (Commercial Gazette Date /Number 26.11.2014/ 8702)

Previous Address

:

O.S.B. Sehit Mustafa Avci Cad.No:45 Payas / Hatay

Changed On

:

10.04.2015 (Commercial Gazette Date /Number 16.04.2015/ 8802)

 

 

OWNERSHIP / MANAGEMENT

 

 

SHAREHOLDERS

:

Nursan Celik Sanayi ve Haddecilik A.S.

35,65 %

Ilyas Keles

21,49 %

Ramazan Keles

21,46 %

Sabri Keles

21,40 %

 

 

GROUP

:

NURSAN GROUP OF COMPANIES

 

SISTER COMPANIES

:

AKDENIZ SIFA SAGLIK HIZMETLERI A.S.

NURSAN CELIK SANAYI VE HADDECILIK A.S.

NURSAN DEMIR PAZARLAMA A.S.

NURSAN DENIZCILIK LIMAN VE GEMI ISLETMECILIGI A.S.

NURSAN ENERJI URETIM VE DAGITIM HIZMETLERI A.S.

NURSAN GIDA SANAYI VE DIS TICARET A.S.

 

SUBSIDIARIES

:

NURSAN DENIZCILIK LIMAN VE GEMI ISLETMECILIGI A.S.

 

BOARD OF DIRECTORS

:

Sabri Keles

Chairman

Ramazan Keles

Vice-Chairman

Ilyas Keles

Member

 

 

OPERATIONS

 

 

BUSINESS ACTIVITIES

:

Melting iron scrap and manufacturing construction iron and steel log.

 

NACE CODE

:

DJ.27.10

 

NUMBER OF EMPLOYEES

:

487

 

NET SALES

:

77.870.725 TL

(2005) 

377.863.980 TL

(2006) 

426.094.919 TL

(2007) 

633.307.573 TL

(2008) 

603.671.180 TL

(2009) 

836.440.831 TL

(2010) 

1.116.484 TL Thousand

(2011) 

1.428.522 TL Thousand

(2012) 

1.381.661 TL Thousand

(2013) 

1.512.721 TL Thousand

(2014) 

 

 

IMPORT VALUE

:

240.000.000 USD

(2006)

160.000.000 USD

(2007)

311.000.000 USD

(2008)

248.000.000 USD

(2009)

385.624.000 USD

(2010)

188.224.000 USD

(01.01-30.06.2011)

 

 

IMPORT COUNTRIES

:

U.S.A.

Russia

Israel

Lebanon

Algeria

Netherlands

Norway

France

 

MERCHANDISE IMPORTED

:

Consumables

Scrap

 

EXPORT VALUE

:

15.399.160 TL

(2005)

94.344.240 TL

(2006)

154.314.206 TL

(2007)

310.717.951 TL

(2008)

124.335.421 TL

(2009)

283.412.413 TL

(2010)

254.475.820 TL

(2011)

315.190 USD Thousand

(2012)

517.454 TL Thousand

(2013)

539.135 TL Thousand

(2014)

197.576 TL Thousand

(01.01-30.06.2015)

EXPORT COUNTRIES

:

India

Israel

Iraq

Spain

 

MERCHANDISE  EXPORTED

:

Carbon electrodes

 

HEAD OFFICE ADDRESS

:

Karsi Mah. OSB Sehit Mustafa Avci Cad. No:5 Payas  Hatay / Turkey

 

BRANCHES

:

Head Office/Processing Plant  :  Karsi Mah. OSB Sehit Mustafa Avci Cad. No:5 Payas Hatay/Turkey

 

 

TREND OF BUSINESS

:

There was an upwards trend in  2014.

SIZE OF BUSINESS

:

Giant

 

 

FINANCE

 

 

MAIN DEALING BANKS

:

Akbank Adana Branch

Akbank Iskenderun Branch

Finansbank Adana Branch

Finansbank Iskenderun Branch

Garanti Bankasi Iskenderun 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 Thousand

(2012) TL Thousand

(2013) TL Thousand

(2014) TL Thousand

 

Net Sales

1.116.484

1.428.522

1.381.661

1.512.721

 

Profit (Loss) Before Tax

9.387

9.464

7.975

20.680

 

Stockholders' Equity

124.358

233.169

235.964

244.033

 

Total Assets

916.719

862.366

1.190.138

1.226.083

 

Current Assets

708.550

653.729

977.909

1.030.631

 

Non-Current Assets

208.169

208.637

212.229

195.452

 

Current Liabilities

741.884

532.408

793.907

892.686

 

Long-Term Liabilities

50.477

96.789

160.267

89.364

 

Gross Profit (loss)

15.702

29.865

169.877

137.811

 

Operating Profit (loss)

7.778

15.770

156.593

122.871

 

Net Profit (loss)

6.356

6.763

5.796

16.135

 

 

 

COMMENT ON FINANCIAL POSITION

 

Capitalization

Insufficient As of 31.12.2014

Liquidity

Satisfactory As of 31.12.2014

Remarks On Liquidity

The favorable gap between average collection and average payable period has a positive effect on liquidity.

Profitability

Low Operating Profitability  in 2011

Low Net Profitability  in 2011

Low Operating Profitability  in 2012

Low Net Profitability  in 2012

High Operating Profitability  in 2013

Low Net Profitability  in 2013

Good Operating Profitability  in 2014

Low Net Profitability  in 2014

 

Gap between average collection and payable periods

Favorable in 2014

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

 ( 01.01-30.06.2011)

6,21 %

1,5771

2,2246

2,5422

 ( 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

 ( 01.01-30.06.2015)

5,49 %

2,5568

2,8727

3,9250

 ( 01.01-31.08.2015)

6,19 %

2,6233

2,9381

4,0377

 

 

BALANCE SHEETS

 

 

 ( 31.12.2011 )  TL Thousand

 

 ( 31.12.2012 )  TL Thousand

 

 ( 31.12.2013 )  TL Thousand

 

 ( 31.12.2014 )  TL Thousand

 

CURRENT ASSETS

708.550

0,77

653.729

0,76

977.909

0,82

1.030.631

0,84

Not Detailed Current Assets

0

0,00

0

0,00

0

0,00

0

0,00

Cash and Banks

69.036

0,08

90.654

0,11

276.074

0,23

293.676

0,24

Marketable Securities

0

0,00

0

0,00

0

0,00

0

0,00

Account Receivable

24.641

0,03

3.504

0,00

18.425

0,02

208.897

0,17

Other Receivable

160

0,00

260

0,00

294

0,00

1.691

0,00

Inventories

509.891

0,56

521.671

0,60

643.392

0,54

501.463

0,41

Advances Given

36.321

0,04

16.874

0,02

12.842

0,01

1.530

0,00

Accumulated Construction Expense

0

0,00

0

0,00

0

0,00

0

0,00

Other Current Assets

68.501

0,07

20.766

0,02

26.882

0,02

23.374

0,02

NON-CURRENT ASSETS

208.169

0,23

208.637

0,24

212.229

0,18

195.452

0,16

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

1.735

0,00

2.208

0,00

3.023

0,00

3.023

0,00

Tangible Fixed Assets (net)

201.922

0,22

203.398

0,24

141.592

0,12

129.238

0,11

Intangible Assets

3.624

0,00

-71

0,00

65.669

0,06

60.816

0,05

Deferred Tax Assets

0

0,00

0

0,00

0

0,00

0

0,00

Other Non-Current Assets

888

0,00

3.102

0,00

1.945

0,00

2.375

0,00

TOTAL ASSETS

916.719

1,00

862.366

1,00

1.190.138

1,00

1.226.083

1,00

CURRENT LIABILITIES

741.884

0,81

532.408

0,62

793.907

0,67

892.686

0,73

Not Detailed Current Liabilities

0

0,00

0

0,00

0

0,00

0

0,00

Financial Loans

291.222

0,32

191.944

0,22

427.088

0,36

516.906

0,42

Accounts Payable

139.572

0,15

249.982

0,29

287.538

0,24

338.574

0,28

Loans from Shareholders

398

0,00

1.902

0,00

219

0,00

2.654

0,00

Other Short-term Payable

40

0,00

19.879

0,02

20

0,00

11

0,00

Advances from Customers

233.603

0,25

40.781

0,05

41.947

0,04

3.079

0,00

Accumulated Construction Income

0

0,00

0

0,00

0

0,00

0

0,00

Taxes Payable

5.576

0,01

1.824

0,00

2.374

0,00

2.259

0,00

Provisions

684

0,00

219

0,00

7

0,00

1.043

0,00

Other Current Liabilities

70.789

0,08

25.877

0,03

34.714

0,03

28.160

0,02

LONG-TERM LIABILITIES

50.477

0,06

96.789

0,11

160.267

0,13

89.364

0,07

Not Detailed Long-term Liabilities

0

0,00

0

0,00

0

0,00

0

0,00

Financial Loans

36.060

0,04

84.371

0,10

147.992

0,12

76.681

0,06

Securities Issued

0

0,00

0

0,00

0

0,00

0

0,00

Long-term Payable

711

0,00

406

0,00

101

0,00

0

0,00

Loans from Shareholders

0

0,00

0

0,00

0

0,00

0

0,00

Other Long-term Liabilities

5.898

0,01

2.351

0,00

1.067

0,00

513

0,00

Provisions

7.808

0,01

9.661

0,01

11.107

0,01

12.170

0,01

STOCKHOLDERS' EQUITY

124.358

0,14

233.169

0,27

235.964

0,20

244.033

0,20

Not Detailed Stockholders' Equity

0

0,00

0

0,00

0

0,00

0

0,00

Paid-in Capital

100.000

0,11

222.000

0,26

222.000

0,19

222.000

0,18

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

18.002

0,02

4.406

0,01

8.168

0,01

5.898

0,00

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)

6.356

0,01

6.763

0,01

5.796

0,00

16.135

0,01

TOTAL LIABILITIES AND EQUITY

916.719

1,00

862.366

1,00

1.190.138

1,00

1.226.083

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:1.066, Due From Participations:0, Due From Affiliated Companies:0, Due From Personnel:26, Other Miscellaneous Receivables:599, Other Receivable Total:1.691    

 

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 57.145 of the other income is due to "Profit from Foreign Currency Exchange". 

 

At the last income statement TL thousand 151.072 of the other expenses is due to "Loss from Foreign Currency Exchange" .

 

 

INCOME STATEMENTS

 

 

(2011) TL Thousand

 

(2012) TL Thousand

 

(2013) TL Thousand

 

(2014) TL Thousand

 

Net Sales

1.116.484

1,00

1.428.522

1,00

1.381.661

1,00

1.512.721

1,00

Cost of Goods Sold

1.100.782

0,99

1.398.657

0,98

1.211.784

0,88

1.374.910

0,91

Gross Profit

15.702

0,01

29.865

0,02

169.877

0,12

137.811

0,09

Operating Expenses

7.924

0,01

14.095

0,01

13.284

0,01

14.940

0,01

Operating Profit

7.778

0,01

15.770

0,01

156.593

0,11

122.871

0,08

Other Income

46.229

0,04

69.893

0,05

126.337

0,09

221.127

0,15

Other Expenses

41.239

0,04

33.350

0,02

231.526

0,17

283.348

0,19

Financial Expenses

3.381

0,00

42.849

0,03

43.429

0,03

39.970

0,03

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

9.387

0,01

9.464

0,01

7.975

0,01

20.680

0,01

Tax Payable

3.031

0,00

2.701

0,00

2.179

0,00

4.545

0,00

Postponed Tax Gain

0

0,00

0

0,00

0

0,00

0

0,00

Net Profit (loss)

6.356

0,01

6.763

0,00

5.796

0,00

16.135

0,01

 

 

FINANCIAL RATIOS

 

 

(2011)

(2012)

(2013)

(2014)

LIQUIDITY RATIOS

 

Current Ratio

0,96

1,23

1,23

1,15

Acid-Test Ratio

0,13

0,18

0,37

0,56

Cash Ratio

0,09

0,17

0,35

0,33

ASSET STRUCTURE RATIOS

 

Inventory/Total Assets

0,56

0,60

0,54

0,41

Short-term Receivable/Total Assets

0,03

0,00

0,02

0,17

Tangible Assets/Total Assets

0,22

0,24

0,12

0,11

TURNOVER RATIOS

 

Inventory Turnover

2,16

2,68

1,88

2,74

Stockholders' Equity Turnover

8,98

6,13

5,86

6,20

Asset Turnover

1,22

1,66

1,16

1,23

FINANCIAL STRUCTURE

 

Stockholders' Equity/Total Assets

0,14

0,27

0,20

0,20

Current Liabilities/Total Assets

0,81

0,62

0,67

0,73

Financial Leverage

0,86

0,73

0,80

0,80

Gearing Percentage

6,37

2,70

4,04

4,02

PROFITABILITY RATIOS

 

Net Profit/Stockholders' Eq.

0,05

0,03

0,02

0,07

Operating Profit Margin

0,01

0,01

0,11

0,08

Net Profit Margin

0,01

0,00

0,00

0,01

Interest Cover

3,78

1,22

1,18

1,52

COLLECTION-PAYMENT

 

Average Collection Period (days)

7,95

0,88

4,80

49,71

Average Payable Period (days)

45,88

64,45

85,45

88,65

WORKING CAPITAL

-33334,00

121321,00

184002,00

137945,00

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.65.55

UK Pound

1

Rs.99.17

Euro

1

Rs.73.08

 

INFORMATION DETAILS

 

Analysis Done by :

TRI

 

 

Report Prepared by :

TRU

 

               

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.