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3decades

 

MIRA INFORM REPORT

 

 

Report No. :

492076

Report Date :

15.02.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

VARZENE METAL SANAYI VE TICARET A.S.

 

 

Formerly Known As :

VARZENE METAL SANAYI VE TICARET LTD. STI.   

 

 

Registered Office :

Istanbul Tuzla Organize Sanayi Bolgesi 3. Cad. No:10 Tepeoren Tuzla 34959 Istanbul

 

 

Country :

Turkey

 

 

Financials (as on) :

31.12.2016  

 

 

Date of Incorporation :

13.11.2007

 

 

Com. Reg. No.:

645133

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Processing and wholesale trade of steel.

 

 

No. of Employees :

17

 

 

RATING & COMMENTS

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

 

MIRA’s Rating :

A

 

Credit Rating

Explanation

Rating Comments

A

Acceptable Risk

Business dealings permissible with moderate risk of default

 

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

 

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 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. Other troublesome trends include rising unemployment and inflation, which increased in 2017, given the Turkish lira’s continuing depreciation against the dollar. Although government debt remains low at about 30% 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

VARZENE METAL SANAYI VE TICARET A.S.

HEAD OFFICE ADDRESS

Istanbul Tuzla Organize Sanayi Bolgesi 3. Cad. No:10 Tepeoren Tuzla 34959 Istanbul / Turkey

PHONE NUMBER

90-216-593 90 66

 

FAX NUMBER

90-216-420 15 01

 

WEB-ADDRESS

www.varzene.com

E-MAIL

info@varzene.com

 

 

LEGAL STATUS AND HISTORY

 

 

 

 NOTES ON LEGAL STATUS AND HISTORY

Change at tax no.                                                                                                                                                                          

TAX OFFICE

Tuzla

TAX NO

9240484673

REGISTRATION NUMBER

645133

REGISTERED OFFICE

Istanbul Chamber of Commerce

COMMERCIAL REGISTRY

Istanbul Commercial Registry

DATE ESTABLISHED

13.11.2007

ESTABLISHMENT GAZETTE DATE/NO

19.11.2007/6939

LEGAL FORM

Joint Stock Company

TYPE OF COMPANY

Private

REGISTERED CAPITAL

TL   2.600.000

PAID-IN CAPITAL

TL   2.600.000

HISTORY

Previous Legal Type   :  

Limited Company    / Changed on : 23.08.2013/(Commercial Gazette Date /Number 29.08.2013 /8394)

Previous Name   :  

Varzene Metal Sanayi ve Ticaret Ltd. Sti.    / Changed on : 23.08.2013/(Commercial Gazette Date /Number 29.08.2013 /8394)

Previous Registered Capital   :  

TL 150.000    / Changed on : 08.05.2012/(Commercial Gazette Date /Number 14.05.2012 /8067)

Previous Registered Capital   :  

TL 750.000    / Changed on : 27.07.2015/(Commercial Gazette Date /Number 31.07.2015 /8874)

Previous Address   :   

Ikitelli Organize Sanayi Bolgesi Eskoop Sanayi Sitesi C-5 Blok No:219 Kucukcekmece Istanbul    / Changed on : 31.07.2009/(Commercial Gazette Date /Number 06.08.2009 /7370)

Previous Address   :  

Ikitelli Organize Sanayi Bolgesi Eskoop Sanayi Sitesi C-5 Blok No:237-239-241 Kucukcekmece Istanbul    / Changed on : 15.03.2011/(Commercial Gazette Date /Number 18.03.2011 /7775)

Previous Address   :  

Istanbul Tuzla Organize Sanayi Bolgesi 4. Cad. No:27 Tepeoren Tuzla Istanbul    / Changed on : 25.12.2014/(Commercial Gazette Date /Number 31.12.2014 /8727)

Previous Tax No   :  

9240440527    / Changed on : 23.08.2013/(Commercial Gazette Date /Number 29.08.2013 /8394)

 

 

OWNERSHIP / MANAGEMENT

 

 

 

SHAREHOLDERS

Ismail Demirkaya

100 %

 

SISTER COMPANIES

 

 

 

- BIRLESIK METAL VE ISIL ISLEM SANAYI VE TICARET LTD. STI. ( Origin: Turkey,  Tax Number: 1780457366,  Registration Number: 486767 )

- KUZEYPOYRAZ METAL SANAYI VE TICARET LTD. STI. ( Origin: Turkey,  Tax Number: 6010467944,  Registration Number: 780108 )

 

 

BOARD OF DIRECTORS

 

Ismail Demirkaya ( Chairman )

Gokay Demirkaya ( Vice-Chairman )

 

 

OPERATIONS

 

 

 

 BUSINESS ACTIVITIES

Processing and wholesale trade of steel.

 

NACE CODE

DJ.27.10

 

SECTOR

Metal

 

NUMBER OF EMPLOYEES

17

 

NET SALES

835.287 TL

(2008) 

3.656.497 TL

(2009) 

5.969.681 TL

(2010) 

12.023.122 TL

(2011) 

12.767 TL Thousand

(2012) 

16.400 TL Thousand

(2013) 

18.384 TL Thousand

(2014) 

23.008 TL Thousand

(2015) 

26.469 TL Thousand

(2016) 

23.293 TL Thousand

(01.01-30.09.2017) 

 

CAPACITY

None

 

PRODUCTION

None

 

IMPORT VALUE

8.976 TL Thousand

(2016)

 

IMPORT COUNTRIES

Far East Countries

Germany

France

Czech Republic

 

MERCHANDISE IMPORTED

Steel products

 

EXPORT VALUE

154 TL

(2008)

73.147 TL

(2009)

104.500 TL

(2010)

347.987 TL

(2011)

1.619.745 TL

(2012)

3.721 TL Thousand

(2013)

1.390 TL Thousand

(2014)

1.259 TL Thousand

(2015)

1.719 TL Thousand

(2016)

2.208 TL Thousand

(01.01-30.09.2017)

 

EXPORT COUNTRIES

Jordan

U.S.A.

Free Zone

 

MERCHANDISE  EXPORTED

Iron and steel bars

 

HEAD OFFICE ADDRESS

Istanbul Tuzla Organize Sanayi Bolgesi 3. Cad. No:10 Tepeoren Tuzla  Istanbul / Turkey

 

BRANCHES

Processing Plant  :  Gebze Kocaeli/Turkey  

 

Head Office/Processing Plant  :  Istanbul Tuzla Organize Sanayi Bolgesi 3. Cad. No:10 Tepeoren Tuzla Istanbul/Turkey  

           

NOTES ON INVESTMENTS

None                                                                                                                                                               

 

TREND OF BUSINESS

There was an upwards trend in 2015 and 2016. There appears an upwards trend in the first 9 months of 2017.

SIZE OF BUSINESS

Large

 

 

  FINANCE

 

 

 

MAIN DEALING BANKS

ING Bank Imsan Sanayi Sitesi Branch

T. Is Bankasi Ikitelli Sanayi Branch

Kuveyt Turk Katilim Bankasi Tuzla Sanayi Branch

Kuveyt Turk Katilim Bankasi Ikitelli Branch

T. Garanti Bankasi Tuzla Branch

T. Garanti Bankasi Ikitelli Organize Sanayi Branch

Yapi ve Kredi Bankasi Ikitelli Branch

 

CREDIT FACILITIES

 

The subject company is making use of credit facilities.

 

PAYMENT BEHAVIOUR

 

No complaints

 

KEY FINANCIAL ELEMENTS

 

(2013)                                                                                TL Thousand

(2014)                                                                                TL Thousand

(2015)                                                                                TL Thousand

(2016)                                                                                TL Thousand

(01.01-30.09.2017)                                                                                TL Thousand

Net Sales

16.400

18.384

23.008

26.469

23.293

Profit (Loss) Before Tax

691

1.154

1.105

1.230

1.018

Stockholders' Equity

2.455

3.370

4.200

5.152

 

Total Assets

11.466

16.853

21.324

29.360

 

Current Assets

10.270

11.329

15.320

23.415

 

Non-Current Assets

1.196

5.524

6.004

5.945

 

Current Liabilities

9.011

10.450

14.856

22.927

 

Long-Term Liabilities

 

3.033

2.268

1.281

 

Gross Profit (loss)

2.892

3.922

4.994

5.556

5.003

Operating Profit (loss)

1.412

2.158

2.774

3.309

2.822

Net Profit (loss)

547

915

830

953

1.018

 

 

COMMENT ON FINANCIAL POSITION

 

Capitalization

Insufficient As of 31.12.2016

Remarks on Capitalization

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

                                                                                                                               

Liquidity

Insufficient As of 31.12.2016

Remarks 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

Good Operating Profitability  in 2013

In Order Net Profitability  in 2013

High Operating Profitability  in 2014

Good Net Profitability  in 2014

High Operating Profitability  in 2015

In Order Net Profitability  in 2015

High Operating Profitability  in 2016

In Order Net Profitability  in 2016

High Operating Profitability (01.01-30.09.2017)

In Order Net Profitability (01.01-30.09.2017)

 

Gap between average collection and payable periods

Favorable in 2016

General Financial Position

Passable

 

 

CREDIT OPINION WITHOUT OBLIGATION

 

 

Incr. in producers’ price index

 

Average USD/TL

Average EUR/TL

Average GBP/ TL

 ( 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

 ( 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

 ( 01.01-30.09.2017)

9,78 %

3,5731

3,9855

4,5746

 ( 2017 )

15,47 %

3,6337

4,1120

4,7059

 

 

Financials

 

BALANCE SHEETS

 

 

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

10.270

0,90

11.329

0,67

15.320

0,72

23.415

0,80

Not Detailed Current Assets

0

0,00

0

0,00

0

0,00

0

0,00

Cash and Banks

606

0,05

27

0,00

125

0,01

217

0,01

Marketable Securities

0

0,00

0

0,00

4

0,00

0

0,00

Account Receivable

5.667

0,49

5.892

0,35

6.257

0,29

11.195

0,38

Other Receivable

176

0,02

195

0,01

149

0,01

132

0,00

Inventories

1.981

0,17

3.465

0,21

7.141

0,33

9.830

0,33

Advances Given

1.044

0,09

942

0,06

553

0,03

1.198

0,04

Accumulated Construction Expense

0

0,00

0

0,00

0

0,00

0

0,00

Other Current Assets

796

0,07

808

0,05

1.091

0,05

843

0,03

NON-CURRENT ASSETS

1.196

0,10

5.524

0,33

6.004

0,28

5.945

0,20

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

2

0,00

Financial Assets

0

0,00

0

0,00

0

0,00

0

0,00

Tangible Fixed Assets (net)

1.175

0,10

5.495

0,33

5.593

0,26

5.608

0,19

Intangible Assets

21

0,00

29

0,00

411

0,02

335

0,01

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

0

0,00

TOTAL ASSETS

11.466

1,00

16.853

1,00

21.324

1,00

29.360

1,00

CURRENT LIABILITIES

9.011

0,79

10.450

0,62

14.856

0,70

22.927

0,78

Not Detailed Current Liabilities

0

0,00

0

0,00

0

0,00

0

0,00

Financial Loans

4.251

0,37

5.691

0,34

7.467

0,35

8.924

0,30

Accounts Payable

2.924

0,26

2.856

0,17

5.562

0,26

11.289

0,38

Loans from Shareholders

2

0,00

0

0,00

10

0,00

0

0,00

Other Short-term Payable

600

0,05

258

0,02

209

0,01

280

0,01

Advances from Customers

1.021

0,09

982

0,06

1.045

0,05

1.748

0,06

Accumulated Construction Income

0

0,00

0

0,00

0

0,00

0

0,00

Taxes Payable

164

0,01

375

0,02

287

0,01

539

0,02

Provisions

49

0,00

288

0,02

276

0,01

147

0,01

Other Current Liabilities

0

0,00

0

0,00

0

0,00

0

0,00

LONG-TERM LIABILITIES

0

0,00

3.033

0,18

2.268

0,11

1.281

0,04

Not Detailed Long-term Liabilities

0

0,00

0

0,00

0

0,00

0

0,00

Financial Loans

0

0,00

3.033

0,18

2.268

0,11

1.281

0,04

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

2.455

0,21

3.370

0,20

4.200

0,20

5.152

0,18

Not Detailed Stockholders' Equity

0

0,00

0

0,00

0

0,00

0

0,00

Paid-in Capital

750

0,07

750

0,04

2.600

0,12

2.600

0,09

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

900

0,08

1.447

0,09

512

0,02

1.341

0,05

Revaluation Fund

263

0,02

263

0,02

264

0,01

264

0,01

Accumulated Losses(-)

-5

0,00

-5

0,00

-6

0,00

-6

0,00

Net Profit (loss)

547

0,05

915

0,05

830

0,04

953

0,03

TOTAL LIABILITIES AND EQUITY

11.466

1,00

16.853

1,00

21.324

1,00

29.360

1,00

 

 

INCOME STATEMENTS

 

 

(2013)  ( Full Year  )  TL Thousand

 

(2014)  ( Full Year  )  TL Thousand

 

(2015)  ( Full Year  )  TL Thousand

 

(2016)  ( Full Year  )  TL Thousand

 

(01.01-30.09.2017)  ( Interim Period )  TL Thousand

 

Net Sales

16.400

1,00

18.384

1,00

23.008

1,00

26.469

1,00

23.293

1,00

Cost of Goods Sold

13.508

0,82

14.462

0,79

18.014

0,78

20.913

0,79

18.290

0,79

Gross Profit

2.892

0,18

3.922

0,21

4.994

0,22

5.556

0,21

5.003

0,21

Operating Expenses

1.480

0,09

1.764

0,10

2.220

0,10

2.247

0,08

2.181

0,09

Operating Profit

1.412

0,09

2.158

0,12

2.774

0,12

3.309

0,13

2.822

0,12

Other Income

470

0,03

480

0,03

397

0,02

250

0,01

366

0,02

Other Expenses

708

0,04

517

0,03

906

0,04

905

0,03

853

0,04

Financial Expenses

483

0,03

967

0,05

1.160

0,05

1.424

0,05

1.317

0,06

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

691

0,04

1.154

0,06

1.105

0,05

1.230

0,05

1.018

0,04

Tax Payable

144

0,01

239

0,01

275

0,01

277

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)

547

0,03

915

0,05

830

0,04

953

0,04

1.018

0,04

 

 

LAST FINANCIAL STATEMENT DETAILS

 

 

TL Thousand

Cash

5

Banks

212

Doubtful Trade Receivables

0

Receivables From Shareholders  (in Other Receivable)

53

Other Miscellaneous Receivables (in Other Receivable)

79

Overdue, Delayed or Deferred Tax by Installments and Other Liabilities

0

 

 

FINANCIAL RATIOS

 

 

(2013)

(2014)

(2015)

(2016)

LIQUIDITY RATIOS

Current Ratio

1,14

1,08

1,03

1,02

Acid-Test Ratio

0,72

0,59

0,44

0,50

Cash Ratio

0,07

0,00

0,01

0,01

ASSET STRUCTURE RATIOS

Inventory/Total Assets

0,17

0,21

0,33

0,33

Short-term Receivable/Total Assets

0,51

0,36

0,30

0,39

Tangible Assets/Total Assets

0,10

0,33

0,26

0,19

TURNOVER RATIOS

Inventory Turnover

6,82

4,17

2,52

2,13

Stockholders' Equity Turnover

6,68

5,46

5,48

5,14

Asset Turnover

1,43

1,09

1,08

0,90

FINANCIAL STRUCTURE

Stockholders' Equity/Total Assets

0,21

0,20

0,20

0,18

Current Liabilities/Total Assets

0,79

0,62

0,70

0,78

Financial Leverage

0,79

0,80

0,80

0,82

Gearing Percentage

3,67

4,00

4,08

4,70

PROFITABILITY RATIOS

Net Profit/Stockholders' Eq.

0,22

0,27

0,20

0,18

Operating Profit Margin

0,09

0,12

0,12

0,13

Net Profit Margin

0,03

0,05

0,04

0,04

Interest Cover

2,43

2,19

1,95

1,86

COLLECTION-PAYMENT

Average Collection Period (days)

124,40

115,38

97,90

152,29

Average Payable Period (days)

77,93

71,09

111,15

194,33

WORKING CAPITAL

1259,00

879,00

464,00

488,00

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 64.13

UK Pound

1

INR 89.17

Euro

1

INR 79.39

TRY

1

INR 16.92

 

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

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

                                                


 

 

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.