MIRA INFORM REPORT

 

 

Report No. :

496984

Report Date :

15.03.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

ERUSLU TEKSTIL SANAYI VE TICARET A.S.

 

 

Registered Office :

Baspinar (Organize) Osb Mah. O.S.B. 2. Bolge Celal Dogan Bulvari Gec Kimya Sitesi No:45 Sehitkamil 27500 Gaziantep

 

 

Country :

Turkey

 

 

Financials (as on) :

31.12.2016 

 

 

Date of Incorporation :

28.09.1994

 

 

Com. Reg. No.:

16711

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacture and trade of fabric and polypropylene yarn to be used at carpet, polypropylene fiber glass and machine-made carpet.

 

 

No. of Employees :

450

 

 

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 :

Good

 

 

Payment Behaviour :

Regular

 

 

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

(30.09.2017)

Current Rating

(31.12.2017)

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.

The growth of Turkish GDP since 2016 has revealed the 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

 

NOTE 

 

Address at your inquiry is the former address.                                                                                                                                                                         

 

 

COMPANY IDENTIFICATION

 

 

 

NAME

ERUSLU TEKSTIL SANAYI VE TICARET A.S.

HEAD OFFICE ADDRESS

Baspinar (Organize) Osb Mah. O.S.B. 2. Bolge Celal Dogan Bulvari Gec Kimya Sitesi No:45 Sehitkamil 27500 Gaziantep / Turkey

PHONE NUMBER

90-342-337 96 30 (6 lines)

 

FAX NUMBER

90-342-337 92 68

 

WEB-ADDRESS

www.eruslutekstil.com

E-MAIL

eruslu@eruslutekstil.com

 

 

LEGAL STATUS AND HISTORY

 

 

TAX OFFICE

Sehitkamil

TAX NO

3760004677

REGISTRATION NUMBER

16711

REGISTERED OFFICE

Gaziantep Chamber of Commerce

COMMERCIAL REGISTRY

Gaziantep Commercial Registry

DATE ESTABLISHED

28.09.1994

ESTABLISHMENT GAZETTE DATE/NO

04.10.1994/3630

LEGAL FORM

Joint Stock Company

TYPE OF COMPANY

Private

REGISTERED CAPITAL

TL   120.000.000

HISTORY

Previous Registered Capital   :  

TL 14.000.000    / Changed on : 28.06.2007/(Commercial Gazette Date /Number 11.07.2007 /6849)

Previous Registered Capital   :  

TL 15.000.000    / Changed on : 27.10.2010/(Commercial Gazette Date /Number 09.11.2010 /7686)

Previous Registered Capital   :  

TL 20.000.000    / Changed on : 09.08.2011/(Commercial Gazette Date /Number 17.08.2011 /7882)

Previous Registered Capital   :  

TL 35.000.000    / Changed on : 27.06.2012/(Commercial Gazette Date /Number 04.07.2012 /8104)

Previous Registered Capital   :  

TL 40.000.000    / Changed on : 20.08.2015/(Commercial Gazette Date /Number 01.09.2015 /8896)

Previous Registered Capital   :  

TL 72.000.000    / Changed on : 11.10.2017/(Commercial Gazette Date /Number 25.10.2017 /9437)

Previous Address   :  

Baspinar Mah. 2. Organize Sanayi Bolgesi Celal Dogan Bulvari No:39 Sehitkamil Gaziantep    / Changed on : 11.10.2017/(Commercial Gazette Date /Number 25.10.2017 /9437)

 

 

OWNERSHIP / MANAGEMENT

 

 

 

SHAREHOLDERS

Okkas Eruslu

90 %

Gussum Eruslu

7 %

Mehmet Ali Eruslu

1 %

Eyyup Eruslu

1 %

Nazire Erturhan Eruslu

1 %

 

 

SISTER COMPANIES

 

 

 

- ERUSLU IC VE DIS TICARET PAZARLAMA A.S. ( Origin: Turkey,  Tax Number: 1820024550,  Registration Number: 4895 )

 

 

BOARD OF DIRECTORS

 

Okkas Eruslu ( Chairman )

Mehmet Ali Eruslu ( Vice-Chairman )

Eyyup Eruslu ( Member )

 

 

 

OPERATIONS

 

 

BUSINESS ACTIVITIES

Manufacture and trade of fabric and polypropylene yarn to be used at carpet, polypropylene fiber glass and machine-made carpet.

 

NACE CODE

DB.17.00

 

SECTOR

Textile

 

TRADEMARKS OWNED

Emirhan

Eruslu

 

NUMBER OF EMPLOYEES

450

 

NET SALES

251.108 TL

(1999) 

1.032.226 TL

(2000) 

3.979.824 TL

(2001) 

8.431.984 TL

(2002) 

14.594.520 TL

(2003) 

27.013.914 TL

(2004) 

32.503.156 TL

(2005) 

44.783.005 TL

(2006) 

48.941.658 TL

(2007) 

48.218.429 TL

(2008) 

53.736.350 TL

(2009) 

71.763.024 TL

(2010) 

128.648.691 TL

(2011) 

139.837 TL Thousand

(2012) 

154.073 TL Thousand

(2013) 

204.212 TL Thousand

(2014) 

221.617 TL Thousand

(2015) 

263.036 TL Thousand

(2016) 

395.974 TL Thousand

(2017) 

 

IMPORT COUNTRIES

Israel

U.S.A.

Netherlands

 

MERCHANDISE IMPORTED

Polypropylene

Yarn

 

EXPORT VALUE

8.495 TL

(2000)

364.485 TL

(2001)

52.135 TL

(2002)

1.068.734 TL

(2003)

8.142.472 TL

(2004)

5.400.000 USD

(2005)

12.978.345 TL

(2006)

26.050.342 TL

(2007)

28.745.355 TL

(2008)

34.781.655 TL

(2009)

40.446.929 TL

(2010)

57.881.409 TL

(2011)

62.234.280 TL

(2012)

55.367.133 TL

(2013)

66.311 TL Thousand

(2014)

46.675 TL Thousand

(2015)

103.776 TL Thousand

(2016)

87.186 TL Thousand

(2017)

 

EXPORT COUNTRIES

Romania

Saudi Arabia

 

MERCHANDISE  EXPORTED

Carpet

 

HEAD OFFICE ADDRESS

Baspinar (Organize) Osb Mah. O.S.B. 2. Bolge Celal Dogan Bulvari Gec Kimya Sitesi No:45 Sehitkamil  Gaziantep / Turkey

 

BRANCHES

Factory  :  4. Organize Sanayi Bolgesi 83414 Nolu Cad. No:28 Sehitkamil Gaziantep/Turkey ( owned )  

 

Head Office/Factory  :  Baspinar (Organize) Osb Mah. O.S.B. 2. Bolge Celal Dogan Bulvari Gec Kimya Sitesi No:45 Sehitkamil Gaziantep/Turkey   

                                                                                

GENERAL INFORMATION ON OPERATIONS

The firm has a high market potential.

TREND OF BUSINESS

There was an upwards trend in 2014, 2015, 2016 and 2017.

SIZE OF BUSINESS

Giant

 

 

FINANCE

 

 

 

MAIN DEALING BANKS

Turk Ekonomi Bankasi Gaziantep Branch

Yapi ve Kredi Bankasi Gaziantep Branch

QNB Finansbank Gaziantep Ticari Branch

 

CREDIT FACILITIES

 

The subject company is making active use of credit facilities.

 

PAYMENT BEHAVIOUR

 

Regular

 

KEY FINANCIAL ELEMENTS

 

(2013)                                                                                TL Thousand

(2014)                                                                                TL Thousand

(2015)                                                                                TL Thousand

(2016)                                                                                TL Thousand

(2017)                                                                                TL Thousand

Net Sales

154.073

204.212

221.617

263.036

395.974

Profit (Loss) Before Tax

7.119

8.084

8.069

6.259

9.050

Stockholders' Equity

55.938

62.966

80.677

84.883

 

Total Assets

116.973

145.218

198.932

259.214

 

Current Assets

50.405

76.589

97.700

115.742

 

Non-Current Assets

66.568

68.629

101.232

143.472

 

Current Liabilities

35.837

67.082

94.686

160.816

 

Long-Term Liabilities

25.198

15.170

23.569

13.515

 

Gross Profit (loss)

18.362

13.248

11.589

17.582

22.629

Operating Profit (loss)

15.318

9.378

7.536

12.380

14.415

Net Profit (loss)

6.212

7.028

7.711

5.422

9.050

 

 

COMMENT ON FINANCIAL POSITION

 

THE DETAILS OF THE CAPITAL INCREASE  AFTER LAST BALANCE SHEET

 

 

Cash Part

36.000.000 TL

Merger Part

12.000.000 TL

Payment Due Date

11.10.2019

 

Capitalization

Satisfactory

Remarks on Capitalization

There has been capital increase after the last balance sheet date.                                                                                                                                                  The capital increase is expected to have an improvement at equity total since the last balance sheet date.      

                                                                                                                                         

Liquidity

Insufficient

Remarks On Liquidity

 

The capital increase after the last balance sheet is expected to have a positive effect on liquidity since the last balance sheet date.                                                                                                                                                 

 

Profitability

Good Operating Profitability  in 2013

Good Net Profitability  in 2013

In Order Operating Profitability  in 2014

In Order Net Profitability  in 2014

Fair Operating Profitability  in 2015

In Order Net Profitability  in 2015

In Order Operating Profitability  in 2016

Fair Net Profitability  in 2016

Fair Operating Profitability  in 2017

Low Net Profitability  in 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

 ( 2004 )

13,84 %

1,4266

1,7666

2,6001

 ( 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

 ( 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

 ( 2017 )

15,47 %

3,6337

4,1120

4,7059

 ( 01.01-28.02.2018)

3,69 %

3,7820

4,6191

5,2464

 

 

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

50.405

0,43

76.589

0,53

97.700

0,49

115.742

0,45

Not Detailed Current Assets

0

0,00

0

0,00

0

0,00

0

0,00

Cash and Banks

3.138

0,03

14.569

0,10

21.325

0,11

26.276

0,10

Marketable Securities

0

0,00

0

0,00

0

0,00

0

0,00

Account Receivable

39.228

0,34

49.753

0,34

61.313

0,31

57.676

0,22

Other Receivable

363

0,00

1.379

0,01

0

0,00

2.001

0,01

Inventories

6.283

0,05

9.623

0,07

8.990

0,05

20.422

0,08

Advances Given

1.393

0,01

1.265

0,01

6.051

0,03

8.119

0,03

Accumulated Construction Expense

0

0,00

0

0,00

0

0,00

0

0,00

Other Current Assets

0

0,00

0

0,00

21

0,00

1.248

0,00

NON-CURRENT ASSETS

66.568

0,57

68.629

0,47

101.232

0,51

143.472

0,55

Not Detailed Non-Current Assets

0

0,00

0

0,00

0

0,00

0

0,00

Long-term Receivable

10

0,00

70

0,00

86

0,00

67

0,00

Financial Assets

0

0,00

0

0,00

0

0,00

0

0,00

Tangible Fixed Assets (net)

66.429

0,57

68.433

0,47

100.874

0,51

143.282

0,55

Intangible Assets

0

0,00

0

0,00

0

0,00

0

0,00

Deferred Tax Assets

0

0,00

0

0,00

0

0,00

0

0,00

Other Non-Current Assets

129

0,00

126

0,00

272

0,00

123

0,00

TOTAL ASSETS

116.973

1,00

145.218

1,00

198.932

1,00

259.214

1,00

CURRENT LIABILITIES

35.837

0,31

67.082

0,46

94.686

0,48

160.816

0,62

Not Detailed Current Liabilities

0

0,00

0

0,00

0

0,00

0

0,00

Financial Loans

25.358

0,22

48.165

0,33

60.955

0,31

100.610

0,39

Accounts Payable

3.549

0,03

16.299

0,11

28.185

0,14

57.563

0,22

Loans from Shareholders

0

0,00

0

0,00

0

0,00

0

0,00

Other Short-term Payable

4.842

0,04

845

0,01

206

0,00

234

0,00

Advances from Customers

0

0,00

0

0,00

3.500

0,02

97

0,00

Accumulated Construction Income

0

0,00

0

0,00

0

0,00

0

0,00

Taxes Payable

1.082

0,01

722

0,00

805

0,00

887

0,00

Provisions

0

0,00

0

0,00

0

0,00

0

0,00

Other Current Liabilities

1.006

0,01

1.051

0,01

1.035

0,01

1.425

0,01

LONG-TERM LIABILITIES

25.198

0,22

15.170

0,10

23.569

0,12

13.515

0,05

Not Detailed Long-term Liabilities

0

0,00

0

0,00

0

0,00

0

0,00

Financial Loans

25.198

0,22

15.170

0,10

23.569

0,12

13.515

0,05

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

55.938

0,48

62.966

0,43

80.677

0,41

84.883

0,33

Not Detailed Stockholders' Equity

0

0,00

0

0,00

0

0,00

0

0,00

Paid-in Capital

40.000

0,34

40.000

0,28

72.000

0,36

72.000

0,28

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

9.726

0,08

15.938

0,11

966

0,00

7.461

0,03

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)

6.212

0,05

7.028

0,05

7.711

0,04

5.422

0,02

TOTAL LIABILITIES AND EQUITY

116.973

1,00

145.218

1,00

198.932

1,00

259.214

1,00

 

 

INCOME STATEMENTS

 

 

(2013)  ( Full Year  )  TL Thousand

 

(2014)  ( Full Year  )  TL Thousand

 

(2015)  ( Full Year  )  TL Thousand

 

(2016)  ( Full Year  )  TL Thousand

 

(2017)  ( Full Year  )  TL Thousand

 

Net Sales

154.073

1,00

204.212

1,00

221.617

1,00

263.036

1,00

395.974

1,00

Cost of Goods Sold

135.711

0,88

190.964

0,94

210.028

0,95

245.454

0,93

373.345

0,94

Gross Profit

18.362

0,12

13.248

0,06

11.589

0,05

17.582

0,07

22.629

0,06

Operating Expenses

3.044

0,02

3.870

0,02

4.053

0,02

5.202

0,02

8.214

0,02

Operating Profit

15.318

0,10

9.378

0,05

7.536

0,03

12.380

0,05

14.415

0,04

Other Income

1.676

0,01

4.578

0,02

6.695

0,03

8.041

0,03

8.171

0,02

Other Expenses

8.266

0,05

4.574

0,02

5.283

0,02

13.195

0,05

12.924

0,03

Financial Expenses

1.609

0,01

1.298

0,01

879

0,00

967

0,00

612

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

7.119

0,05

8.084

0,04

8.069

0,04

6.259

0,02

9.050

0,02

Tax Payable

907

0,01

1.056

0,01

358

0,00

837

0,00

0

0,00

Postponed Tax Gain

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Net Profit (loss)

6.212

0,04

7.028

0,03

7.711

0,03

5.422

0,02

9.050

0,02

 

 

LAST FINANCIAL STATEMENT DETAILS

 

 

TL Thousand

Cash

14

Banks

26.262

Doubtful Trade Receivables

1.615

Provision for Doubtful Trade Receivables

-1.615

Other Miscellaneous Receivables (in Other Receivable)

2.001

Overdue, Delayed or Deferred Tax by Installments and Other Liabilities

0

 

 

FINANCIAL RATIOS

 

 

(2013)

(2014)

(2015)

(2016)

LIQUIDITY RATIOS

 

Current Ratio

1,41

1,14

1,03

0,72

Acid-Test Ratio

1,19

0,98

0,87

0,53

Cash Ratio

0,09

0,22

0,23

0,16

ASSET STRUCTURE RATIOS

 

Inventory/Total Assets

0,05

0,07

0,05

0,08

Short-term Receivable/Total Assets

0,34

0,35

0,31

0,23

Tangible Assets/Total Assets

0,57

0,47

0,51

0,55

TURNOVER RATIOS

 

Inventory Turnover

21,60

19,84

23,36

12,02

Stockholders' Equity Turnover

2,75

3,24

2,75

3,10

Asset Turnover

1,32

1,41

1,11

1,01

FINANCIAL STRUCTURE

 

Stockholders' Equity/Total Assets

0,48

0,43

0,41

0,33

Current Liabilities/Total Assets

0,31

0,46

0,48

0,62

Financial Leverage

0,52

0,57

0,59

0,67

Gearing Percentage

1,09

1,31

1,47

2,05

PROFITABILITY RATIOS

 

Net Profit/Stockholders' Eq.

0,11

0,11

0,10

0,06

Operating Profit Margin

0,10

0,05

0,03

0,05

Net Profit Margin

0,04

0,03

0,03

0,02

Interest Cover

5,42

7,23

10,18

7,47

COLLECTION-PAYMENT

 

Average Collection Period (days)

91,68

87,83

99,74

79,03

Average Payable Period (days)

9,41

30,73

48,31

84,43

WORKING CAPITAL

14568,00

9507,00

3014,00

-45074,00

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 64.99

UK Pound

1

INR 90.83

Euro

1

INR 80.58

TRY

1

INR 16.67

 

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

 

 

INFORMATION DETAILS

 

Analysis Done by :

PRA

 

 

Report Prepared by :

SYL

                                                


 

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.