MIRA INFORM REPORT

 

 

Report Date :

22.02.2013

 

IDENTIFICATION DETAILS

 

Name :

BANK TECHNIQUE ASC

 

 

Formerly Known As :

TEXNIKABANK ASC

 

 

Registered Office :

Ataturk Avenue, 1107th Block Narimanov District Baku AZ1069

 

 

Country :

Azerbaijan

 

 

Financials (as on) :

31.12.2010   

 

 

Date of Incorporation :

24.02.1994

 

 

Legal Form :

Open Joint Stock Company

 

 

Line of Business :

Providers of all aspects of banking services including personal and business banking.

 

 

No. of Employees :

500

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Azerbaijan

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

AZERBAIJAN - ECONOMIC OVERVIEW

 

Azerbaijan's high economic growth during 2006-08 was attributable to large and growing oil exports, but some non-export sectors also featured double-digit growth, including construction, banking, and real estate, although most of this increase was tied to growth in the hydrocarbon sector. In 2011, economic growth slowed to 0.1%, largely because oil production reached a plateau. Real GDP growth improved in 2012, reaching about 40%, but the current global economic slowdown presents some challenges for the Azerbaijani economy as oil prices remain volatile, highlighting Azerbaijan's reliance on energy exports and lackluster attempts to diversify its economy. Oil exports through the Baku-Tbilisi-Ceyhan Pipeline remain the main economic driver while efforts to boost Azerbaijan's gas production are underway. Natural gas from fields under development in Azerbaijan by an international consortium is the only gas currently available for the geopolitically important Southern Corridor project, which aims to improve European energy security. However, Azerbaijan has made only limited progress on instituting market-based economic reforms. Pervasive public and private sector corruption and structural economic inefficiencies remain a drag on long-term growth, particularly in non-energy sectors. Several other obstacles impede Azerbaijan's economic progress, including the need for stepped up foreign investment in the non-energy sector and the continuing conflict with Armenia over the Nagorno-Karabakh region. Trade with Russia and the other former Soviet republics is declining in importance, while trade is building with Turkey and the nations of Europe. Long-term prospects depend on world oil prices, the location of new oil and gas pipelines in the region, Azerbaijan's ability to negotiate export routes for its growing gas production, and its ability to manage its energy wealth to promote growth and spur employment in non-energy sectors of the economy.

Source : CIA


company name

 

Bank Technique ASC (Correct)

OAO BANK TECHNIQUE (Requested)

 

 

ADDRESS

 

Street                           : Ataturk Avenue, 1107th Block

 

Area                             : Narimanov District

 

Town                : Baku AZ1069

Country             : Azerbaijan

 

Telephone         : (994 12) 447 7744 ext. 268 (Habil Dzhavadov) / 441 2206 / 440 2961

Fax                   : (994 12) 493 8711 / 440 2961

E-Mail               : habil.cavadov@banktechnique.az

 

Trading Style : Bank Technique

 

English Translation : Bank Technique OJSC

 

Also known as : Bank Technique Acik Sehmdar Cemiyyeti

 

Formerly known as : Texnikabank ASC / Texnikabank OJSC

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                                 Position

 

1. Ulvi Eldar Oglu Mansurov                    Chairman

 

2. Yashar Khasay Oglu Safarov               First Deputy Chairman

 

3. Ayaz Tofik Oglu Geray-zade                Deputy Chairman

 

4. Orkhan Ziyad Oglu Guseynov              Member of the Board / Finance

 

5. Dzhamin Mikail Oglu Gadzhiev            Member of the Board

 

6. Habil Dzhavadov                                 Legal advisor

 

7. Ms. Shagiya                                      Accountant

 

Total Employees :                                  500

 

 

PAYMENTS

 

No complaints have been heard regarding payments from local suppliers

or banks.

 

We consider it is acceptable to deal with subject for LARGE amounts,

although it is normal accepted practice for international suppliers

to deal on secured terms with Azerbaijani importers.

 

Trade risk assessment : Normal

 

 

PRINCIPAL BANKERS

 

NAME               : AZERBAYCAN RESPUBLIKASININ MERKEZI BANKI

 

Branch               : Rashid Behbudov Street 32, Nasimi District

Town                 : Baku AZ1014

 

Telephone         : (994 12) 493 1122

Fax                    : (994 12) 493 5541

 

 

FINANCIAL INFORMATION

 

Balance Sheets as at 31 December 2010 showed (latest available) :

 

                                         31/12/2010    31/12/2009

                                        (in thousands of NEW MANAT)

 

ASSETS

 

Cash and cash equivalents                    44,870        47,897

Mandatory cash balances with CBA              1,102           837

Due from other banks                          4,119         6,980

Loans and advances to customers             358,355       342,509

Investment securities available for sale     10,997           609

Other securities                             11,633         2,336

Investment properties                        16,278         1,181

Premises and equipment                       37,768        39,111

Intangible assets                             1,730         2,628

Other financial assets                        2,835         3,340

Other assets                                  6,057         2,778

TOTAL ASSETS                                495,744       450,206

 

LIABILITIES AND EQUITY       

 

LIABILITIES

 

Due to other banks                           21,896        28,826

Customer accounts                           269,513       189,812

Debt securities in issue                      3,337        10,906

Term borrowings from other banks

and financial institutions                  122,969       157,007

Current income tax liabilities                  229             -

Deferred income tax liabilities               1,316           971

Other financial liabilities                   3,230         1,916

Other liabilities                                 -         2,173

TOTAL LIABILITIES                           422,490       391,611

 

EQUITY

Share capital                                53,685        41,712

Share premium                                 3,464         3,464

Retained income                              12,939         3,143

Revaluation reserve for premises              3,049           149

Revaluation reserve for investment available

for sale                                        117        10,127

TOTAL EQUITY                                 73,254        58,595

TOTAL LIABILITIES AND EQUITY                495,744       450,206

 

PROFIT AND LOSS ACCOUNT

 

Interest income                              49,335        53,355

Interest expense                            (26,560)      (27,458)

 

Net interest income                          22,775        25,897

Provision for loan impairment                (7,139)       (9,354)                               

Net interest income after provision

for loan impairment                          15,553        16,543

 

Fee and commission income                    10,381        10,495

Fee and commission expense                   (2,446)       (2,070)

Dividend income                                 632           200

Gains less losses from trading in

foreign currencies                            1,830           856

Foreign exchange translation losses

less gains                                    1,625           626

Other operating income                           34            21

Operating income                             27,493        26,671

Administrative and other operating expenses  (3,861)       (3,261)

Staff costs paid                             (6,397)       (6,097)

Administrative and other operating expenses (15,106)      (13,959)

Profit before tax                            12,387        12,712

Income tax expense                             (344)            -

Profit for the year                          12,043        12,712

 

Financial year ends 31 December.

LEGAL STATUS AND HISTORY

 

Date Started : 24 February 1994

 

History : The subject company was established in Azerbaijan on 24 February 1994 under the name Rashadbank Commercial Bank Ltd. Upon the decision of the owners made on 10 February 1997, the Bank changed its name to "Texnikabank" and was registered as a limited liability company on 18 June 1998. Based on the requirements of the new law on banking adopted on 16 January 2004, upon the decision of the owners dated 27 August 2004, the Bank was re-registered as an Open Joint Stock Company on 26 November 2004. On 11 September 2012 subject changed its name to the present style.

 

Tax No.: VOEN 9900000681

 

Banking Licence No.: 198 (issued by the National Bank of Azerbaijan

                     on 29 February 1994)

SWIFT BIK: TECIAZ22 

 

Authorised Capital : NEW MANAT 41,712,000

 

Paid-Up Capital : NEW MANAT 41,712,000

Achyuk Sekhmdar Camiyeti (open joint stock company) with the

following shareholders :

 

   Shareholders                               Percentage

 

1. World Wines Ferdi Firmasi                         75%

  (World Wines Private Company)

   Yesenin Street 11, Office 4

   Azizbeyov District

   Baku

   Est.: 23 October 2000

  (owned by Adil Mammadov)

  (wine production, food processing and agriculture) 

 

2. Etibar Aliyev                                     15%

 

3. Kazimir Caspian Fund Limited                      10%

   Cayman Islands

  (domiciled in the Russian Federation)

  (the above company is an affiliated company to Kazimir Russia

   Master Fund Limited)

 

The ultimate controlling party of Bank Technique is the majority shareholder World Wines, and its controlling party Adil Mammadov.

 

Affiliated companies of Bank Technique ASC :

 

Subsidiaries

 

1. Technika Capital Management Limited LLC (TCML)          100%

   Est.: 16 May 2002

   Provides capital management services to Technikabank's customers. 

 

2. Texnikalizinq MMC                                       100%

   Hasan Aliyev Street 63/2

   Baku AZ1000

   Telephone: (994 12) 465 6831 / (994 55) 200 5258

   Fax      : (994 12) 465 6832

   Est.: 2 June 2004

   Tax No.: VOEN 1500028081

   Capital : NEW MANAT 200,000

  (ceased trading and became dormant in 2012)

  

3. Alfa Insurance LLC                                      100%

   Established on 28 August 1997 under the name of Murad Insurance

   Company and changed its name to Alfa Insurance on 3 June 2005.

   Alfa Insurance was acquired by Technikabank on 12 December 2006

   from Huseynov Yagub Valeh, who owned 100% of the shares of Alfa

   Insurance, for consideration of AZN 1.5 million.

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Providers of all aspects of banking services including personal and

business banking.

 

NACE Code : 6411

 

 

FACILITIES

 

The Company has the following facilities :

 

Administrative office and banking facilities located at the heading

address.

 

Bank Technique provides banking services through its network of 35 branches, 2 service outlets and 3 currency exchange points. In addition Bank Technique has alternative distribution channels including 46 ATMs, 327 point-of-sale (POS) terminals and an internet banking service.

 

Subject's head office premises formerly located at the following address :

 

Ataturk Avenue 41/47

Baku AZ1069

 

 

REGISTERED OFFICE

 

Ataturk Avenue, 1107th Block

Narimanov District

Baku AZ1069

 

 

SPECIAL NOTE

 

You enquired on : OAO BANK TECHNIQU is incorrect. Please note that subject’s correct registered name is as per heading.

 

Interviewed: Habil Dzhavadov (Legal advisor).

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.48

UK Pound

1

Rs.82.71

Euro

1

Rs.72.23

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

New Business

 

--

 

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 and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

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.