3decades

MIRA INFORM REPORT

Report No. :	487923
Report Date :	29.01.2018

IDENTIFICATION DETAILS

Name :	INTERSWEET DIS TICARET A.S.

Formerly Known As :	INTERSWEET DIS TICARET LTD. STI. (30.04.2014) ELVAN PAZARLAMA DIS TICARET LTD. STI. (04.07.2013) ELVAN GIDA TURIZM TEKSTIL PAZARLAMA LTD. STI. (11.10.2011)

Registered Office :	Yenibosna Merkez Mah. Arifaga Sok. No:1 D:Z1 Bahcelievler 34197 Istanbul

Country :	Turkey

Financials (as on) :	31.12.2016

Date of Incorporation :	24.05.1990

Com. Reg. No.:	265575

Legal Form :	Joint Stock Company

Line of Business :	Wholesale Trade of Food.

No. of Employees :	42

RATING & COMMENTS

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

MIRA’s Rating :

Credit Rating

Explanation

Rating Comments

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

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	INTERSWEET DIS TICARET A.S.
HEAD OFFICE ADDRESS	Yenibosna Merkez Mah. Arifaga Sok. No:1 D:Z1 Bahcelievler 34197 Istanbul / Turkey
PHONE NUMBER	90-212-592 32 00
E-MAIL	intersweet@intersweet.com

LEGAL STATUS AND HISTORY

TAX OFFICE	Marmara Kurumlar
TAX NO	4650420887
REGISTRATION NUMBER	265575
REGISTERED OFFICE	Istanbul Chamber of Commerce
COMMERCIAL REGISTRY	Istanbul Commercial Registry
DATE ESTABLISHED	24.05.1990
ESTABLISHMENT GAZETTE DATE/NO	07.06.1990/2543

LEGAL FORM

Joint Stock Company

TYPE OF COMPANY

Private

REGISTERED CAPITAL

TL 15.000.000

PAID-IN CAPITAL

TL 15.000.000

HISTORY

Previous Legal Type :	Limited Company / Changed on : 30.04.2014/(Commercial Gazette Date /Number 07.05.2014 /8564)
Previous Name :	Elvan Gida Turizm Tekstil Pazarlama Ltd. Sti. / Changed on : 11.10.2011/(Commercial Gazette Date /Number 17.10.2011 /7922)
Previous Name :	Elvan Pazarlama Dis Ticaret Ltd. Sti. / Changed on : 04.07.2013/(Commercial Gazette Date /Number 10.07.2013 /8360)
Previous Name :	Intersweet Dis Ticaret Ltd. Sti. / Changed on : 30.04.2014/(Commercial Gazette Date /Number 07.05.2014 /8564)
Previous Registered Capital :	TL 4.000.000 / Changed on : 06.10.2015/(Commercial Gazette Date /Number 12.10.2015 /8923)

OWNERSHIP / MANAGEMENT

SHAREHOLDERS

Mustafa Kadiroglu	50 %
Hidayet Kadiroglu	25 %
Osman Kadiroglu	25 %

GROUP

ELVAN GROUP OF COMPANIES

SISTER COMPANIES

- ANL GIDA SANAYI VE TICARET LTD. STI. ( Origin: Turkey, Tax Number: 0690367620, Registration Number: 554060 )

- CICI PAZARLAMA TICARET A.S. ( Origin: Turkey, Tax Number: 2090597991, Registration Number: 782817 )

- CICI SUT SANAYI VE TICARET A.S. ( Origin: Turkey, Tax Number: 2090563175, Registration Number: 841746 )

- ELVAN GIDA SANAYII VE TICARET A.S. ( Origin: Turkey, Tax Number: 3330110071, Registration Number: 363866 )

- GOLD GIDA PAZARLAMA TICARET LTD. STI. ( Origin: Turkey, Tax Number: 3960578909, Registration Number: 598738 )

- MARSAN URETIM GIDA SANAYI VE TICARET A.S. ( Origin: Turkey, Tax Number: 6090035322, Registration Number: 227598 )

- POWER BILISIM A.S. ( Origin: Turkey, Tax Number: 7320733556, Registration Number: 933009 )

BOARD OF DIRECTORS

Hidayet Kadiroglu ( Chairman )

Mustafa Kadiroglu ( Vice-Chairman )

Osman Kadiroglu ( Member )

OPERATIONS

BUSINESS ACTIVITIES

Wholesale Trade of Food.

NACE CODE

G .51.30

SECTOR

Commerce

NUMBER OF EMPLOYEES

NET SALES

371.534 TL Thousand	(2015)
368.837 TL Thousand	(2016)
296.662 TL Thousand	(01.01-30.09.2017)

CAPACITY

None

PRODUCTION

None

EXPORT VALUE

371.184 TL Thousand	(2015)
368.642 TL Thousand	(2016)
296.457 TL Thousand	(01.01-30.09.2017)

EXPORT COUNTRIES

European Countries

Middle East Countries

Far East Countries

MERCHANDISE EXPORTED

Food

HEAD OFFICE ADDRESS

Yenibosna Merkez Mah. Arifaga Sok. No:1 D:Z1 Bahcelievler Istanbul / Turkey

GENERAL INFORMATION ON OPERATIONS

The firm has a high market potential.

NOTES ON INVESTMENTS

None

TREND OF BUSINESS	There was a decline at business volume in nominal terms in 2016. There appears a slowdown at business volume in real terms in the first 9 months of 2017.
SIZE OF BUSINESS	Giant

FINANCE

MAIN DEALING BANKS

Akbank Ikitelli Ticari Branch

Denizbank Gunesli Ticari Branch

CREDIT FACILITIES

The subject rarely makes use of credit facilities.

PAYMENT BEHAVIOUR

No payment delays have come to our knowledge in the last years.

KEY FINANCIAL ELEMENTS

	(2015) TL Thousand	(2016) TL Thousand	(01.01-30.09.2017) TL Thousand
Net Sales	371.534	368.837	296.662
Profit (Loss) Before Tax	9.027	4.157	4.285
Stockholders' Equity	22.665	26.027
Total Assets	105.458	123.093
Current Assets	105.267	122.424
Non-Current Assets	191	669
Current Liabilities	82.793	96.587
Long-Term Liabilities		479
Gross Profit (loss)	37.841	30.982	29.002
Operating Profit (loss)	11.554	7.309	9.517
Net Profit (loss)	7.217	3.362	4.285

COMMENT ON FINANCIAL POSITION

Capitalization	Insufficient As of 31.12.2016
Liquidity	Satisfactory As of 31.12.2016
Profitability	Fair Operating Profitability in 2015 Low Net Profitability in 2015 Low Operating Profitability in 2016 Low Net Profitability in 2016 Fair Operating Profitability (01.01-30.09.2017) Low Net Profitability (01.01-30.09.2017)
Gap between average collection and payable periods	Unfavorable in 2016
General Financial Position	Passable

CREDIT OPINION WITHOUT OBLIGATION

	Incr. in producers’ price index	Average USD/TL	Average EUR/TL	Average GBP/ TL
( 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

BALANCE SHEETS

	31.12.2015 ( Full Year ) TL Thousand		31.12.2016 ( Full Year ) TL Thousand
CURRENT ASSETS	105.267	1,00	122.424	0,99
Not Detailed Current Assets	0	0,00	0	0,00
Cash and Banks	5.163	0,05	2.749	0,02
Marketable Securities	0	0,00	0	0,00
Account Receivable	88.749	0,84	111.379	0,90
Other Receivable	0	0,00	1	0,00
Inventories	7.089	0,07	6.990	0,06
Advances Given	2.095	0,02	377	0,00
Accumulated Construction Expense	0	0,00	0	0,00
Other Current Assets	2.171	0,02	928	0,01
NON-CURRENT ASSETS	191	0,00	669	0,01
Not Detailed Non-Current Assets	0	0,00	0	0,00
Long-term Receivable	0	0,00	0	0,00
Financial Assets	142	0,00	142	0,00
Tangible Fixed Assets (net)	47	0,00	47	0,00
Intangible Assets	0	0,00	0	0,00
Deferred Tax Assets	0	0,00	0	0,00
Other Non-Current Assets	2	0,00	480	0,00
TOTAL ASSETS	105.458	1,00	123.093	1,00
CURRENT LIABILITIES	82.793	0,79	96.587	0,78
Not Detailed Current Liabilities	0	0,00	0	0,00
Financial Loans	2	0,00	3	0,00
Accounts Payable	73.434	0,70	87.874	0,71
Loans from Shareholders	1.054	0,01	670	0,01
Other Short-term Payable	127	0,00	133	0,00
Advances from Customers	7.553	0,07	7.139	0,06
Accumulated Construction Income	0	0,00	0	0,00
Taxes Payable	101	0,00	110	0,00
Provisions	522	0,00	658	0,01
Other Current Liabilities	0	0,00	0	0,00
LONG-TERM LIABILITIES	0	0,00	479	0,00
Not Detailed Long-term Liabilities	0	0,00	0	0,00
Financial Loans	0	0,00	0	0,00
Securities Issued	0	0,00	0	0,00
Long-term Payable	0	0,00	442	0,00
Loans from Shareholders	0	0,00	0	0,00
Other Long-term Liabilities	0	0,00	37	0,00
Provisions	0	0,00	0	0,00
STOCKHOLDERS' EQUITY	22.665	0,21	26.027	0,21
Not Detailed Stockholders' Equity	0	0,00	0	0,00
Paid-in Capital	15.000	0,14	15.000	0,12
Cross Shareholding Adjustment of Capital	0	0,00	0	0,00
Inflation Adjustment of Capital	0	0,00	0	0,00
Equity of Consolidated Firms	0	0,00	0	0,00
Reserves	448	0,00	7.665	0,06
Revaluation Fund	0	0,00	0	0,00
Accumulated Losses(-)	0	0,00	0	0,00
Net Profit (loss)	7.217	0,07	3.362	0,03
TOTAL LIABILITIES AND EQUITY	105.458	1,00	123.093	1,00

INCOME STATEMENTS

	(2015) ( Full Year ) TL Thousand		(2016) ( Full Year ) TL Thousand		(01.01-30.09.2017) ( Interim Period ) TL Thousand
Net Sales	371.534	1,00	368.837	1,00	296.662	1,00
Cost of Goods Sold	333.693	0,90	337.855	0,92	267.660	0,90
Gross Profit	37.841	0,10	30.982	0,08	29.002	0,10
Operating Expenses	26.287	0,07	23.673	0,06	19.485	0,07
Operating Profit	11.554	0,03	7.309	0,02	9.517	0,03
Other Income	3.806	0,01	7.121	0,02	3.495	0,01
Other Expenses	6.256	0,02	10.153	0,03	8.489	0,03
Financial Expenses	77	0,00	120	0,00	238	0,00
Minority Interests	0	0,00	0	0,00	0	0,00
Profit (loss) of consolidated firms	0	0,00	0	0,00	0	0,00
Profit (loss) Before Tax	9.027	0,02	4.157	0,01	4.285	0,01
Tax Payable	1.810	0,00	795	0,00	0	0,00
Postponed Tax Gain	0	0,00	0	0,00	0	0,00
Net Profit (loss)	7.217	0,02	3.362	0,01	4.285	0,01

LAST FINANCIAL STATEMENT DETAILS

	TL Thousand
Cash	9
Banks	2.740
Doubtful Trade Receivables	4.717
Provision for Doubtful Trade Receivables	-4.559
Other Miscellaneous Receivables (in Other Receivable)	1
Overdue, Delayed or Deferred Tax by Installments and Other Liabilities	0

FINANCIAL RATIOS

	(2015)	(2016)
LIQUIDITY RATIOS
Current Ratio	1,27	1,27
Acid-Test Ratio	1,13	1,18
Cash Ratio	0,06	0,03
ASSET STRUCTURE RATIOS
Inventory/Total Assets	0,07	0,06
Short-term Receivable/Total Assets	0,84	0,90
Tangible Assets/Total Assets	0,00	0,00
TURNOVER RATIOS
Inventory Turnover	47,07	48,33
Stockholders' Equity Turnover	16,39	14,17
Asset Turnover	3,52	3,00
FINANCIAL STRUCTURE
Stockholders' Equity/Total Assets	0,21	0,21
Current Liabilities/Total Assets	0,79	0,78
Financial Leverage	0,79	0,79
Gearing Percentage	3,65	3,73
PROFITABILITY RATIOS
Net Profit/Stockholders' Eq.	0,32	0,13
Operating Profit Margin	0,03	0,02
Net Profit Margin	0,02	0,01
Interest Cover	118,23	35,64
COLLECTION-PAYMENT
Average Collection Period (days)	85,99	108,71
Average Payable Period (days)	79,22	94,10
WORKING CAPITAL	22474,00	25837,00

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.50
UK Pound	1	INR 90.92
Euro	1	INR 79.07
TL	1	INR 16.91

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

INFORMATION DETAILS

Analysis Done by :	PRA

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.

MIRA INFORM REPORT

COMPANY IDENTIFICATION

LEGAL STATUS AND HISTORY

OWNERSHIP / MANAGEMENT

OPERATIONS

FINANCE

COMMENT ON FINANCIAL POSITION

CREDIT OPINION WITHOUT OBLIGATION

BALANCE SHEETS

INCOME STATEMENTS

LAST FINANCIAL STATEMENT DETAILS

FINANCIAL RATIOS

Unit