TO

:

ATTENTION

:

OUR REF.

:

23AMBA28/01/GS

TYPE

:

SAMPLE REPORT

TOTAL PAGES

:

8

DATE OF REPORT

:

30.11.2007

UPDATED ON

:

30.11.2007

:

YOUR REF

:

REPORT ON

:

AMBA BURO SANAYI VE TICARET AS.

COMMERCIAL CREDIT REPORT

COMPANY IDENTIFICATION

NAME

:

AMBA BURO SANAYI VE TICARET AS.

ADDRESS

:

Head Office & Factory: Demirtas Organize Sanayi Bolgesi Nilufer Sok. Bursa / Turkey

PHONE NUMBER

:

90-224-281 22 34

FAX NUMBER

:

90-224-281 22 39

LEGAL STATUS AND HISTORY

TAX OFFICE / NO

:

Ertugrulgazi / 19300305734

REGISTRATION NUMBER

:

24384

REGISTERED OFFICE

:

Bursa Chamber of Commerce and Industry

DATE ESTABLISHED

:

01.03.1985 (Commercial Registry Gazette Date/No: 05.03.1985 / 431)

LEGAL FORM

:

Joint Stock Company

TYPE OF COMPANY

:

Private

REGISTERED CAPITAL

:

YTL 2,000,000

PAID-IN CAPITAL

:

YTL 1,407,711

HISTORY

:

Previous Name

:Anter Buro Malz. Oturma Gruplari San. ve Tic.A.S.

Name Changed On

: 02.12.1993 (Commercial Registry Gazette Date/No: 05.12.1993/ 3542)

Previous Registered Capital

:YTL 40,000

Regist. Capital Changed on

: 01.11.1999 (Commercial Registry Gazette Date/No: 18.11.1999 / 4922)

Previous Registered Capital

:YTL 1,000,000

Regist. Capital Changed on

:14.01.2002 (Commercial Registry Gazette Date / No: 30.01.2002 / 5476)

Previous Registered Capital

:YTL 1,048,560

Regist. Capital Changed on

:30.11.2006 (Commercial Registry Gazette Date / No: 08.12.2006 / 6448)

The  increase is decided to be financed by cash. According to the capital increase decision ¼ of the increase has to be paid within 1 month following the date of capital increase and the rest has to be paid within 3 years

OWNERSHIP / MANAGEMENT

SHAREHOLDERS

:

Ahmet Aykan

Alper Aykan

Asli Aykan

Turker Aykan

Naciye Dogan

Turgay Irmak

80 %

  6 %

  6 %

  6 %

  1 %

  1 %

SISTER COMPANIES

:

-Lak Gida Sanayi ve Ticaret A.S.

-Lak Kalip Makina Metal Esya San. Ve Tic. Ltd Sti

-Laksan Esya Sanayi Ticaret A.S.

GROUP PARENT COMPANY

:

None

BOARD OF DIRECTORS

:

Ahmet Aykan

Naciye Dogan

Turgay Irmak

Chairman

Vice-Chairman

Member

DIRECTORS

:

Turgay Irmak

General Manager

OPERATIONS

BUSINESS ACTIVITIES

:

Manufacture and trade of office armchair

TRADEMARK(S)

:

“AMBA”; a well-known trademark in Turkey

NUMBER OF EMPLOYEES

:

175

NET SALES

(YTL)

15,274,370

22,585,665

23,256,336

18,526,465

(2004)

(2005)

(2006)

(1.1.-30.09.2007)

CAPACITY

:

(Units/Yr)

868,423

868,423

868,423

868,423

(2004)

(2005)

(2006)

(2007)

PRODUCTION

:

(Units)

238,937

302,134

304,627

214,231

(2004)

(2005)

(2006)

(1.1.-30.09.2007)

IMPORT VALUE

:

USD 428,274

USD 635,656

USD 639,388

USD 753,673

(2004)

(2005)

(2006)

(1.1.-30.09.2007)

IMPORT COUNTRIES

:

UK, Italy, Malaysia…

MERCHANDISE IMPORTED

:

Fabric, shock absorber and mechanism

EXPORT VALUE

:

USD 2,420,676

USD 2,489,354

USD 1,692,813

USD  2,556,731

(2004)

(2005)

(2006)

(1.1.-30.09.2007)

EXPORT COUNTRIES

:

Kenya, Algeria, Bulgaria, Egypt, France, Georgia, UK,  Greece, Iran, Lebanon, Macedonia, Northern Cyprus Turkish Republic…

MERCHANDISE EXPORTED

:

Office armchair

PREMISES

:

Head Office & Factory: Demirtas Organize Sanayi Bolgesi Nilufer Sok. Bursa (partly owned-partly rented) (12,513 sqm covered area over a land of 50,500 sqm)

Branch: Tepeoren Cad No:27 Kartal / Istanbul

FIXED CAPITAL INVESTMENTS

:

None

TREND OF BUSINESS

:

Steady

SIZE OF BUSINESS

:

Large

FINANCE

MAIN DEALING BANKERS

:

Yapi ve Kredi Bankasi Heykel branch in Bursa

Akbank Bursa Ticari branch in Bursa

Garanti Bankasi Bursa branch in Bursa

Denizbank Bursa branch in Bursa

Ziraat Bankasi Garajlar branch in Bursa

Citibank Bursa branch in Bursa

T. Is Bankasi Bursa branch in Bursa

Anadolubank Bursa branch in Bursa

CREDIT FACILITIES

:

The subject company is making use of short-term and long-term credit facilities.

PAYMENT BEHAVIOUR

:

No payment delays have come to our knowledge.

COMMENT ON FINANCIAL POSITION

FINANCIAL STRUCTURE (SUFFICENCY OF OWN RESOURCES)

Good

As of 30.09.2007

LIQUIDITY

Good

As of 30.09.2007

PROFITABILITY

Good

Between 1.1.- 30.09.2007

GAP BETWEEN COLLECTION-PAYMENT

PERIODS

Unfavorable

Between 1.1.- 30.09.2007

GENERAL FINANCIAL

POSITION

Good

CREDIT OPINION

PROPOSED CREDIT AMOUNT

:

OUR RISK OPINION

:

C

CREDIT OPINION WITHOUT OBLIGATION

:

We are of the opinion that, the subject is suitable for a max. credit of EUR 2.5 million.

GUIDE FOR risk OPINION index

A

B

C

D

E

F

G

Z

No Risk

Low Risk

Natural Risk

Tolerable Risk

Over Normal Risk

High Risk

Very Negative Position

No Assessment

Incr. in producers’ price index

Average YTL/$

Average YTL/EUR

Average YTL/GBP

(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

(1.1.-30.09.2007)

4.98 %

1.3447

1.8084

2.6720

(1.1.-31.10.2007)

4.84 %

1.3308

1.7999

2.6527

This report is furnished to you in strict confidence for your use. This report or the source of this report should not be passed on to third parties. Although every effort has been spent to provide you the most accurate information, we do not accept any liability for any inaccuracies contained in this report.

BALANCE SHEETS

YTL

YTL

YTL

31.12.05

31.12.06

30.9.07

CURRENT ASSETS

11.335.925

0,50

9.525.191

0,47

10.422.425

0,49

 Cash and Banks

1.014.575

0,04

177.624

0,01

417.624

0,02

 Marketable Securities

0

0,00

227.750

0,01

334.632

0,02

 Account Receivable

7.714.849

0,34

5.606.750

0,28

6.162.235

0,29

 Other Receivable

48.184

0,00

266

0,00

0

0,00

 Inventories

1.980.164

0,09

2.982.130

0,15

3.416.376

0,16

 Advances Given

158.272

0,01

131.585

0,01

56.323

0,00

 Other Current Assets

419.881

0,02

399.086

0,02

35.235

0,00

NON-CURRENT ASSETS

11.305.699

0,50

10.625.748

0,53

10.910.642

0,51

 Long-term Receivable

0

0,00

0

0,00

0

0,00

 Financial Assets

488.531

0,02

634.031

0,03

732.144

0,03

 Tangible Fixed Assets (net)

9.654.635

0,43

8.633.565

0,43

8.727.362

0,41

 Intangible Assets

1.152.081

0,05

1.349.231

0,07

1.451.136

0,07

 Other Non-Current Assets

10.452

0,00

8.921

0,00

0

0,00

TOTAL ASSETS

22.641.624

1,00

20.150.939

1,00

21.333.067

1,00

CURRENT LIABILITIES

10.431.415

0,46

8.024.717

0,40

6.718.254

0,31

 Financial Loans

3.085.031

0,14

4.522.290

0,22

4.031.587

0,19

 Accounts Payable

6.619.211

0,29

2.817.363

0,14

2.325.652

0,11

 Loans from Shareholders

123.515

0,01

0

0,00

0

0,00

 Other Short-term Payable

82.472

0,00

83.976

0,00

45.622

0,00

 Advances from Customers

324.888

0,01

394.232

0,02

262.662

0,01

 Taxes Payable

87.306

0,00

183.173

0,01

49.399

0,00

 Provisions

88.797

0,00

0

0,00

0

0,00

 Other Current Liabilities

20.195

0,00

23.683

0,00

3.332

0,00

LONG-TERM LIABILITIES

1.551.286

0,07

985.835

0,05

3.175.384

0,15

 Financial Loans

712.474

0,03

482.660

0,02

1.027.011

0,05

 Securities Issued

0

0,00

0

0,00

0

0,00

 Long-term Payable

838.812

0,04

503.175

0,02

2.148.373

0,10

 Loans from Shareholders

0

0,00

0

0,00

0

0,00

 Other Long-term Liabilities

0

0,00

0

0,00

0

0,00

 Provisions

0

0,00

0

0,00

0

0,00

STOCKHOLDERS' EQUITY

10.658.923

0,47

11.140.387

0,55

11.439.429

0,54

 Paid-in Capital

1.048.560

0,05

1.407.711

0,07

1.407.711

0,07

 Reserves

9.040.227

0,40

9.377.027

0,47

9.134.592

0,43

 Revaluation Fund

0

0,00

0

0,00

0

0,00

 Accumulated Losses(-)

0

0,00

0

0,00

0

0,00

 Net Profit (loss)

570.136

0,03

355.649

0,02

897.126

0,04

TOTAL LIABILITIES AND EQUITY

22.641.624

1,00

20.150.939

1,00

21.333.067

1,00

INCOME STATEMENTS

YTL

YTL

YTL

2005

2006

1.1.-30.9.07

Net Sales

22.585.665

1,00

23.256.336

1,00

18.526.465

1,00

 Cost of Goods Sold

20.302.647

0,90

20.555.221

0,88

16.372.840

0,88

Gross Profit

2.283.018

0,10

2.701.115

0,12

2.153.625

0,12

 Operating Expenses

2.054.612

0,09

2.357.562

0,10

1.995.966

0,11

Operating Profit

228.406

0,01

343.553

0,01

157.659

0,01

 Other Income

1.091.061

0,05

739.499

0,03

1.272.345

0,07

 Other Expenses

328.978

0,01

239.449

0,01

70.533

0,00

 Financial Expenses

330.798

0,01

487.954

0,02

462.345

0,02

Profit (loss) Before Tax

659.691

0,03

355.649

0,02

897.126

0,05

 Tax Payable

89.555

0,00

0

0,00

0

0,00

Net Profit (loss)

570.136

0,03

355.649

0,02

897.126

0,05

FINANCIAL RATIOS

2005

2006

1.1.-30.09.07

LIQUIDITY RATIOS

Current Ratio

1,09

1,19

1,55

Acid-Test Ratio

0,84

0,75

1,03

ASSET STRUCTURE RATIOS

Inventory/Total Assets

0,09

0,15

0,16

Short-term Receivable/Total Assets

0,34

0,28

0,29

Tangible Assets/Total Assets

0,43

0,43

0,41

TURNOVER RATIOS

Inventory Turnover

10,25

6,89

4,79

Stockholders' Equity Turnover

2,12

2,09

1,62

Asset Turnover

1,00

1,15

0,87

FINANCIAL STRUCTURE

Stockholders' Equity/Total Assets

0,47

0,55

0,54

Current Liabilities/Total Assets

0,46

0,40

0,31

Financial Leverage

0,53

0,45

0,46

PROFITABILITY RATIOS

Net Profit/Stockholders' Eq.

0,05

0,03

0,08

Operating Profit Margin

0,01

0,01

0,01

Net Profit Margin

0,03

0,02

0,05

COLLECTION-PAYMENT

Average Collection Period (days)

122,97

86,79

119,74

Average Payable Period (days)

132,24

58,16

98,37