MIRA INFORM REPORT

 

 

Report No. :

489802

Report Date :

02.02.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

DOGU IKLIMLENDIRME SANAYI VE TICARET A.S.

 

 

Registered Office :

ITOB Org. San. Bol. 10010 Sok. No:4 Tekeli Menderes 35473 Izmir

 

 

Country :

Turkey

 

 

Financials (as on) :

31.12.2016

 

 

Date of Incorporation :

07.01.1999

 

 

Com. Reg. No.:

88860

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacture and trade of heating and cooling equipment.

 

 

No. of Employees :

200

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

B

 

Credit Rating

Explanation

Rating Comments

B

Medium Risk

Business dealings permissible on a regular monitoring basis

 

Status :

Moderate

 

 

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

 

Country Name

Previous Rating

(30.06.2017)

Current Rating

(30.09.2017)

Turkey

B2

B2

 

Risk Category

ECGC

Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

TURKEY - ECONOMIC OVERVIEW

 

Turkey's largely free-market economy is driven by its industry and, increasingly, service sectors, although its traditional agriculture sector still accounts for about 25% of employment. The automotive, petrochemical, and electronics industries have risen in importance and surpassed the traditional textiles and clothing sectors within Turkey's export mix. However, the recent period of political stability and economic dynamism has given way to domestic uncertainty and security concerns, which are generating financial market volatility and weighing on Turkey’s economic outlook.

Current government policies emphasize populist spending measures and credit breaks, while implementation of structural economic reforms has slowed. The government is playing a more active role in some strategic sectors and has used economic institutions and regulators to target political opponents, undermining private sector confidence in the judicial system. Between July 2016 and March 2017, three credit ratings agencies downgraded Turkey’s sovereign credit ratings, citing concerns about the rule of law and the pace of economic reforms.

Turkey remains highly dependent on imported oil and gas but is pursuing energy relationships with a broader set of international partners and taking steps to increase use of domestic energy sources including renewables, nuclear, and coal. The joint Turkish-Azerbaijani Trans-Anatolian Natural Gas Pipeline is moving forward to increase transport of Caspian gas to Turkey and Europe, and when completed will help diversify Turkey's sources of imported gas.

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. An aggressive privatization program also reduced state involvement in basic industry, banking, transport, power generation, and communication. 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 growth rebounded to around 9% in 2010 and 2011, as exports and investment recovered following the crisis.

Since 2014, productivity and growth has slowed to reveal persistent underlying imbalances in the Turkish economy. In particular, Turkey’s low domestic savings and large current account deficit means it must rely on external investment inflows to finance growth, leaving the economy vulnerable to destabilizing shifts in investor confidence. The economy contracted in the third quarter of 2016 for the first time since 2009, in part due to a sharp decline in the tourism sector, and growth is likely to remain below potential in 2017. Other troublesome trends include rising unemployment and elevated inflation, which is likely to increase in 2017 given the Turkish lira’s recent depreciation against the dollar. Although government debt remains low at about 32% of GDP, bank and corporate borrowing has almost tripled as a percent of GDP during the past decade, outpacing its emerging-market peers and prompting investor concerns about its long-term sustainability.

 

Source : CIA

 

COMPANY IDENTIFICATION

 

NAME

DOGU IKLIMLENDIRME SANAYI VE TICARET A.S.

HEAD OFFICE ADDRESS

Itob Org. San. Bol. 10010 Sok. No:4 Tekeli Menderes 35473 Izmir / Turkey

PHONE NUMBER

90-232-799 02 40

FAX NUMBER

90-232-799 02 44

WEB-ADDRESS

www.doguiklimlendirme.com

E-MAIL

info@doguiklimlendirme.com

 

 

LEGAL STATUS AND HISTORY

 

 

NOTES ON LEGAL STATUS AND HISTORY

Change at tax no.                                                                                                                                                                         

 

TAX OFFICE

Menderes

TAX NO

3090351700

REGISTRATION NUMBER

88860

REGISTERED OFFICE

Izmir Chamber of Commerce

COMMERCIAL REGISTRY

Izmir Commercial Registry

DATE ESTABLISHED

07.01.1999

ESTABLISHMENT GAZETTE DATE/NO

15.01.1999/4713

LEGAL FORM

Joint Stock Company

TYPE OF COMPANY

Private

REGISTERED CAPITAL

TL   2.250.000

PAID-IN CAPITAL

TL   2.250.000

HISTORY

Previous Legal Type   :  

Limited Company    / Changed on : 06.12.2013/(Commercial Gazette Date /Number 12.12.2013 /8463)

Previous Name   :  

Dogu Isitma Sogutma Sistemleri Sanayi ve Ticaret Ltd. Sti.    / Changed on : 06.12.2013/(Commercial Gazette Date /Number 12.12.2013 /8463)

Previous Registered Capital   :  

TL 1.000.000    / Changed on : 26.12.2013/(Commercial Gazette Date /Number 03.01.2014 /8478)

Previous Registered Capital   :  

TL 1.250.000    / Changed on : 12.11.2014/(Commercial Gazette Date /Number 17.11.2014 /8695)

Previous Address   :  

ITOB O.S.B. 219 Ada 19 Parsel Yol 2 Tekeli Beldesi Menderes Izmir    / Changed on : 14.03.2011/(Commercial Gazette Date /Number 18.03.2011 /7775)

Merger   :  

The subject took over and merged with "Klimakar Klima Sanayi ve Ticaret A.S."    / Changed on : 27.12.2013/(Commercial Gazette Date /Number 03.01.2014 /8478)

Previous Tax No   :  

3090096766    / Changed on : 06.12.2013/(Commercial Gazette Date /Number 12.12.2013 /8463)

 

 

OWNERSHIP / MANAGEMENT

 

 

 

SHAREHOLDERS

Vehbi Akyar

99,91 %

Guzel Akyar

0,09 %

 

BOARD OF DIRECTORS

Vehbi Akyar ( Chairman )

 

 

OPERATIONS

 

 

BUSINESS ACTIVITIES

Manufacture and trade of heating and cooling equipment.

 

NACE CODE

DK.29.23

 

NUMBER OF EMPLOYEES

200

 

NET SALES

12.392 TL Thousand

(2011) 

14.543 TL Thousand

(2012) 

18.582 TL Thousand

(2013) 

36.526 TL Thousand

(2014) 

42.690 TL Thousand

(2015) 

50.232 TL Thousand

(2016) 

23.101 TL Thousand

(01.01-30.06.2017) 

 

REMARKS ON NET SALES

The sales figure of 01.01.-30.06.2017 is declared by the company. There is no certification for this figure.

 

IMPORT COUNTRIES

China

Germany

France

 

MERCHANDISE IMPORTED

Spare parts

 

EXPORT VALUE

818.825 TL

(2011)

1.991.474 TL

(2012)

1.901.918 TL

(2013)

2.730 TL Thousand

(2014)

1.833 TL Thousand

(2015)

3.090 TL Thousand

(2016)

 

 

EXPORT COUNTRIES

European Countries

Libya

Ukraine

Georgia

Iran

Turkish Republics

 

MERCHANDISE  EXPORTED

Heating and cooling equipment

 

HEAD OFFICE ADDRESS

Itob Org. San. Bol. 10010 Sok. No:4 Tekeli Menderes  Izmir / Turkey

 

BRANCHES

Head Office/Factory  :  Itob Org. San. Bol. 10010 Sok. No:4 35473 Tekeli Menderes Izmir/Turkey  

           

 

 

TREND OF BUSINESS

There was an upwards trend in 2015 and 2016. There appears a decline at business volume in nominal terms in the first 6 months of 2017. However, trend of business appears to be steady in the first 6 months of 2017 when compared to 2014.

SIZE OF BUSINESS

Large

 

 

FINANCE

 

 

 

MAIN DEALING BANKS

Turk Ekonomi Bankasi Torbali Branch

Sekerbank Pinarbasi Branch

Denizbank 5. Sanayi Sitesi Branch

 

CREDIT FACILITIES

 

The subject company is making active use of credit facilities.

 

PAYMENT BEHAVIOUR

 

Slow but Correct.

 

KEY FINANCIAL ELEMENTS

 

(2012)                                                                                TL Thousand

(2013)                                                                                TL Thousand

(2014)                                                                                TL Thousand

(2015)                                                                                TL Thousand

(2016)                                                                                TL Thousand

Net Sales

14.543

18.582

36.526

42.690

50.232

Profit (Loss) Before Tax

162

257

1.630

25

-2.665

Stockholders' Equity

729

1.596

3.663

3.613

893

Total Assets

14.549

24.438

25.029

34.733

33.616

Current Assets

8.684

16.574

17.168

25.732

25.678

Non-Current Assets

5.865

7.864

7.861

9.001

7.938

Current Liabilities

12.010

14.948

13.046

20.357

25.848

Long-Term Liabilities

1.810

7.894

8.320

10.763

6.875

Gross Profit (loss)

3.737

3.584

9.835

8.670

10.863

Operating Profit (loss)

1.523

1.189

4.894

1.703

3.085

Net Profit (loss)

108

164

1.066

-49

-2.720

 

 

COMMENT ON FINANCIAL POSITION

 

Capitalization

Negative Stockholders’ Equity As of 31.12.2016

Remarks on Capitalization

Receivables From Shareholders has been deducted from stockholders’ equity amount at our analysis.                                                                                                                                                 

Liquidity

Fair As of 31.12.2016

Remarks On Liquidity

 

The favorable gap between average collection and average payable period has a positive effect on liquidity.                                                                                                                                                   The liquid assets consist mainly of receivables the amount of cash and banks or marketable securities (which are more liquid) are low.                                                                                                                                                

 

Profitability

High Operating Profitability  in 2012

Low Net Profitability  in 2012

Good Operating Profitability  in 2013

Low Net Profitability  in 2013

High Operating Profitability  in 2014

Fair Net Profitability  in 2014

Fair Operating Profitability  in 2015

Net Loss  in 2015

Good Operating Profitability  in 2016

Net Loss  in 2016

 

Gap between average collection and payable periods

Favorable in 2016

General Financial Position

Poor

 

 

 

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

 ( 2015 )

5,71 %

2,7230

3,0254

4,1661

 ( 2016 )

9,94 %

3,0292

3,3349

4,1006

 ( 01.01-30.06.2017)

7,82 %

3,5995

3,9093

4,5517

 ( 01.01-30.11.2017)

13,91 %

3,6216

4,0777

4,6725

 

 

BALANCE SHEETS

 

 

31.12.2012  ( Full Year  )  TL Thousand

 

31.12.2013  ( Full Year  )  TL Thousand

 

31.12.2014  ( Full Year  )  TL Thousand

 

31.12.2015  ( Full Year  )  TL Thousand

 

31.12.2016  ( Full Year  )  TL Thousand

 

CURRENT ASSETS

8.684

0,60

16.574

0,68

17.168

0,69

25.732

0,74

25.678

0,76

Not Detailed Current Assets

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Cash and Banks

19

0,00

484

0,02

446

0,02

138

0,00

180

0,01

Marketable Securities

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Account Receivable

5.365

0,37

12.702

0,52

12.583

0,50

16.165

0,47

12.607

0,38

Other Receivable

91

0,01

1.193

0,05

1.192

0,05

1.078

0,03

1.161

0,03

Inventories

2.017

0,14

580

0,02

2.740

0,11

7.318

0,21

10.893

0,32

Advances Given

1.135

0,08

1.401

0,06

9

0,00

852

0,02

760

0,02

Accumulated Construction Expense

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Other Current Assets

57

0,00

214

0,01

198

0,01

181

0,01

77

0,00

NON-CURRENT ASSETS

5.865

0,40

7.864

0,32

7.861

0,31

9.001

0,26

7.938

0,24

Not Detailed Non-Current Assets

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Long-term Receivable

0

0,00

0

0,00

2

0,00

2

0,00

3

0,00

Financial Assets

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Tangible Fixed Assets (net)

4.848

0,33

5.103

0,21

5.731

0,23

5.963

0,17

6.329

0,19

Intangible Assets

519

0,04

483

0,02

472

0,02

506

0,01

439

0,01

Deferred Tax Assets

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Other Non-Current Assets

498

0,03

2.278

0,09

1.656

0,07

2.530

0,07

1.167

0,03

TOTAL ASSETS

14.549

1,00

24.438

1,00

25.029

1,00

34.733

1,00

33.616

1,00

CURRENT LIABILITIES

12.010

0,83

14.948

0,61

13.046

0,52

20.357

0,59

25.848

0,77

Not Detailed Current Liabilities

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Financial Loans

2.608

0,18

1.803

0,07

1.123

0,04

4.899

0,14

8.160

0,24

Accounts Payable

7.852

0,54

9.812

0,40

7.541

0,30

10.028

0,29

13.237

0,39

Loans from Shareholders

107

0,01

0

0,00

0

0,00

0

0,00

0

0,00

Other Short-term Payable

167

0,01

250

0,01

385

0,02

458

0,01

389

0,01

Advances from Customers

810

0,06

2.484

0,10

3.465

0,14

4.348

0,13

3.317

0,10

Accumulated Construction Income

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Taxes Payable

398

0,03

300

0,01

307

0,01

388

0,01

672

0,02

Provisions

35

0,00

106

0,00

75

0,00

50

0,00

3

0,00

Other Current Liabilities

33

0,00

193

0,01

150

0,01

186

0,01

70

0,00

LONG-TERM LIABILITIES

1.810

0,12

7.894

0,32

8.320

0,33

10.763

0,31

6.875

0,20

Not Detailed Long-term Liabilities

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Financial Loans

1.810

0,12

7.894

0,32

8.320

0,33

10.763

0,31

6.875

0,20

Securities Issued

0

0,00

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

0

0,00

Loans from Shareholders

0

0,00

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

0

0,00

Provisions

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

STOCKHOLDERS' EQUITY

729

0,05

1.596

0,07

3.663

0,15

3.613

0,10

893

0,03

Not Detailed Stockholders' Equity

0

0,00

1.596

0,07

0

0,00

0

0,00

0

0,00

Paid-in Capital

1.000

0,07

0

0,00

2.250

0,09

2.250

0,06

2.250

0,07

Cross Shareholding Adjustment of Capital

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Inflation Adjustment of Capital

4

0,00

0

0,00

4

0,00

4

0,00

4

0,00

Equity of Consolidated Firms

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Reserves

706

0,05

0

0,00

1.431

0,06

2.497

0,07

2.497

0,07

Revaluation Fund

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Accumulated Losses(-)

-1.089

-0,07

0

0,00

-1.088

-0,04

-1.089

-0,03

-1.138

-0,03

Net Profit (loss)

108

0,01

0

0,00

1.066

0,04

-49

0,00

-2.720

-0,08

TOTAL LIABILITIES AND EQUITY

14.549

1,00

24.438

1,00

25.029

1,00

34.733

1,00

33.616

1,00

 

 

INCOME STATEMENTS

 

 

(2012)  ( Full Year  )  TL Thousand

 

(2013)  ( Full Year  )  TL Thousand

 

(2014)  ( Full Year  )  TL Thousand

 

(2015)  ( Full Year  )  TL Thousand

 

(2016)  ( Full Year  )  TL Thousand

 

Net Sales

14.543

1,00

18.582

1,00

36.526

1,00

42.690

1,00

50.232

1,00

Cost of Goods Sold

10.806

0,74

14.998

0,81

26.691

0,73

34.020

0,80

39.369

0,78

Gross Profit

3.737

0,26

3.584

0,19

9.835

0,27

8.670

0,20

10.863

0,22

Operating Expenses

2.214

0,15

2.395

0,13

4.941

0,14

6.967

0,16

7.778

0,15

Operating Profit

1.523

0,10

1.189

0,06

4.894

0,13

1.703

0,04

3.085

0,06

Other Income

219

0,02

470

0,03

515

0,01

1.423

0,03

1.072

0,02

Other Expenses

321

0,02

455

0,02

2.489

0,07

1.566

0,04

4.594

0,09

Financial Expenses

1.259

0,09

947

0,05

1.290

0,04

1.535

0,04

2.228

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

162

0,01

257

0,01

1.630

0,04

25

0,00

-2.665

-0,05

Tax Payable

54

0,00

93

0,01

564

0,02

74

0,00

55

0,00

Postponed Tax Gain

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Net Profit (loss)

108

0,01

164

0,01

1.066

0,03

-49

0,00

-2.720

-0,05

 

 

LAST FINANCIAL STATEMENT DETAILS

 

 

TL Thousand

Cash

32

Banks

148

Doubtful Trade Receivables

4.297

Provision for Doubtful Trade Receivables

-4.297

Receivables From Shareholders  (in Other Receivable)

1.142

Receivables  From Personnel (in Other Receivable)

2

Other Miscellaneous Receivables (in Other Receivable)

17

Overdue, Delayed or Deferred Tax by Installments and Other Liabilities

0

Other Extraordinary Expenses and Losses

2.940

Provision Expenses

1.300

 

 

FINANCIAL RATIOS

 

 

(2012)

(2013)

(2014)

(2015)

(2016)

LIQUIDITY RATIOS

 

Current Ratio

0,72

1,11

1,32

1,26

0,99

Acid-Test Ratio

0,46

0,96

1,09

0,85

0,54

Cash Ratio

0,00

0,03

0,03

0,01

0,01

ASSET STRUCTURE RATIOS

 

Inventory/Total Assets

0,14

0,02

0,11

0,21

0,32

Short-term Receivable/Total Assets

0,38

0,57

0,55

0,50

0,41

Tangible Assets/Total Assets

0,33

0,21

0,23

0,17

0,19

TURNOVER RATIOS

 

Inventory Turnover

5,36

25,86

9,74

4,65

3,61

Stockholders' Equity Turnover

19,95

11,64

9,97

11,82

56,25

Asset Turnover

1,00

0,76

1,46

1,23

1,49

FINANCIAL STRUCTURE

 

Stockholders' Equity/Total Assets

0,05

0,07

0,15

0,10

0,03

Current Liabilities/Total Assets

0,83

0,61

0,52

0,59

0,77

Financial Leverage

0,95

0,93

0,85

0,90

0,97

Gearing Percentage

18,96

14,31

5,83

8,61

36,64

PROFITABILITY RATIOS

 

Net Profit/Stockholders' Eq.

0,15

0,10

0,29

-0,01

-3,05

Operating Profit Margin

0,10

0,06

0,13

0,04

0,06

Net Profit Margin

0,01

0,01

0,03

0,00

-0,05

Interest Cover

1,13

1,27

2,26

1,02

-0,20

COLLECTION-PAYMENT

 

Average Collection Period (days)

132,81

246,08

124,04

136,33

90,37

Average Payable Period (days)

261,59

235,52

101,71

106,12

121,04

WORKING CAPITAL

-3326,00

1626,00

4122,00

5375,00

-170,00

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 63.61

UK Pound

1

INR 90.18

Euro

1

INR 78.95

TRY

1

INR 17.07

 

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

PRY

 

 

Report Prepared by :

NIT

 

 

RATING EXPLANATIONS

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

NT

No Trace

No recommendation can be done as the business is not traceable

 

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

 

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 are as follows:

 

·         Financial condition covering various ratios

·         Company background and operations size

·         Promoters / Management background

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

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.