MIRA INFORM REPORT
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Report Date : |
11.05.2013 |
IDENTIFICATION DETAILS
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Name : |
LAZAROS HADJIFORADOS & SONS LIMITED |
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Registered Office : |
38 Konstantinou Kalogera,
Larnaka |
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Country : |
Cyprus |
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Financials (as on) : |
December 2011 |
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Date of Incorporation : |
12.01.1979 |
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Com. Reg. No.: |
C11939 |
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Legal Form : |
Limited
Company |
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Line of Business : |
Wholesaler
of hardware, plumbing and heating equipment and supplies |
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No. of Employees : |
13 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
No Complaints |
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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 – March 31st 2013
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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Cyprus |
B2 |
B2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Cyprus ECONOMIC OVERVIEW
The area of the Republic of Cyprus under government control has a
market economy dominated by the service sector, which accounts for four-fifths
of GDP. Tourism, financial services, and real estate are the most important
sectors. Erratic growth rates over the past decade reflect the economy's
reliance on tourism, the profitability of which can fluctuate with political
instability in the region and economic conditions in Western Europe.
Nevertheless, the economy in the area under government control has grown at a
rate well above the EU average since 2000. Cyprus joined the European Exchange
Rate Mechanism (ERM2) in May 2005 and adopted the euro as its national currency
on 1 January 2008. An aggressive austerity program in the preceding years,
aimed at paving the way for the euro, helped turn a soaring fiscal deficit
(6.3% in 2003) into a surplus of 1.2% in 2008, and reduced inflation to 4.7%.
This prosperity came under pressure in 2009, as construction and tourism slowed
in the face of reduced foreign demand triggered by the ongoing global financial
crisis. Although Cyprus lagged behind its EU peers in showing signs of stress
from the global crisis, the economy tipped into recession in 2009, contracting
by 1.7%, and has been slow to bounce back since, posting anemic growth in
2010-11 before contracting again by 2.3% in 2012. Serious problems surfaced in
the Cypriot financial sector in early 2011 as the Greek fiscal crisis and euro
zone debt crisis deepened. Cyprus's borrowing costs have risen steadily because
of its exposure to Greek debt. Two of Cyprus's biggest banks are among the
largest holders of Greek bonds in Europe and have a substantial presence in
Greece through bank branches and subsidiaries. Cyprus experienced numerous
downgrades of its credit rating in 2012 and has been cut off from international
money markets. The Cypriot economy contracted in 2012 following the writedown
of Greek bonds. A liquidity squeeze is choking the financial sector and the
real economy as many global investors are uncertain the Cypriot economy can
weather the EU crisis. The budget deficit rose to 7.4% of GDP in 2011, a
violation of the EU's budget deficit criteria - no more than 3% of GDP. In response
to the country's deteriorating finances and serious risk of contagion from the
Greek debt crisis, Nicosia implemented measures to cut the cost of the state
payroll, curb tax evasion, and revamp social benefits, and trimmed the deficit
to 4.2% of GDP in 2012. In July, Nicosia became the fifth euro zone government
to request an economic bailout program from the European Commission, the
European Central Bank, and the International Monetary Fund - known collectively
as the "Troika". Negotiations over the final details of the plan are
ongoing.
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Source : CIA |
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Employees |
October 2012 |
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Company |
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Total Number |
13 |
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Financial Summary |
December
2011 |
December
2010 |
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EUR |
EUR |
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Revenue
Sales |
3,354,775.00 |
3,507,585.00 |
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Pre
Tax Profit |
397,148.00 |
500,689.00 |
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Working
Capital |
2,160,218.00 |
4,545,444.00 |
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Total
Equity |
2,255,207.00 |
2,473,927.00 |
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Long
Term Debts |
9,515,931.00 |
8,430,556.00 |
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Trend |
- |
- |
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Additional Info: |
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Legal Advisor: LAZAROS CHATZIFORADOS, Leivadia, Larnaka Correspondence: P. KALOPETRIDIS & CO, Po Box: 40369, 6303, Larnaka,
Tel.: 24653555 |
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Assessment: |
Low
Risk |
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Payment
Habits: |
NO
COMPLAINTS |
A
check against all available information sources revealed that no late payment
incidents against Subject Company exist. |
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Commercial
morality |
Good |
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Financial
strength |
Good |
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Date |
Event Name |
Old Value |
New Value |
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01/01/2008 |
Authorized
Capital Changed |
100000.00
CYP |
171000.00
EUR |
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01/01/2008 |
Paid
Up Capital Changed |
100000.00
CYP |
171000.00
EUR |
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01/01/2008 |
Nominal
Values of Shares Changed |
1.00
CYP |
1.71
EUR |
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28/12/1992 |
Authorized
Capital Increased |
10000.00
CYP |
100000.00
CYP |
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Activity Code |
Description |
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NACE
1.1 |
51.54 |
Wholesale
of hardware, plumbing and heating equipment and supplies |
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NACE
2.1 |
4674 |
Wholesale
of hardware, plumbing and heating equipment and supplies - This class
includes: - wholesale of hardware and locks - wholesale of fittings and
fixtures - wholesale of hot water heaters - wholesale of sanitary
installation equipment: > tubes, pipes, fittings, taps, T-pieces,
connections, rubber pipes etc. - wholesale of tools such as hammers, saws,
screwdrivers and other hand tools - - |
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Line of Business |
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The
company in question is involved in the plumping equipment, on both wholesale
and retail basis of plumbing equipment (i.e. pipes & fittings, etc),
building materials, central heating equipment, metal and iron products for
the iron mongers and other related products. |
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Export to |
Percentage |
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Comments |
The
subject does not engage in any export activities. |
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Import
from
China, Germany, Greece, Italy, United Kingdom
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Import Terms |
Percentage |
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Open
account |
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BANK OF CYPRUS PUBLIC COMPANY LIMITED |
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51
Stasinou, Agia Paraskevi, Strovolos, 2002, Nicosia, Cyprus |
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Comment: |
Reportedly
an overdraft of 500000 EUR facility is available and utilised. |
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ETHNIKI TRAPEZA TIS ELLADOS (KYPROU)
LIMITED |
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15
Archiepiskopou Makariou C' Avenue, Nicosia, 1065, Cyprus |
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Comment: |
Reportedly
an overdraft of 500000 EUR facility is available and utilised. |
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Total Number |
Total Amount (EUR) |
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Assignment
of Leasing Contract |
2 |
363,864.00 |
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Mortgage |
10 |
12,286,483.25 |
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Floating
Charge on all Company's Assets |
3 |
6,085,430.07 |
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TOTAL CHARGES |
15 |
18,735,777.32 |
No negatives data
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Financial Figures are Individual |
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MAIN SOURCES OF INFORMATION
i. Visited Official Companies’ Registry
ii. Interview with Company / Correspondence
iii. Desk Research
iv. Search through Internet Subscription Databases (Business Information)
v. Specialized Media Search Global & Local
vi. Search through internet Social Networks
vii. Infocredit Negative Record Database
viii. Relationship/Directorship Search through Infocredit Database
Our efforts to contact an official were unsuccessful. The information provided are from previous and from a previous interview where we talked with Mr Thomas Markou, company director, who confirmed general details about the subject and also provided us with the latest financials accounts.
A check against our records revealed that no negative payment incidents against Subject Company, such as unpaid invoices, dishonoured cheques and utility bills, bankruptcies exist etc.
COUNTRY DEVELOPMENTS:
On
13 June 2012, Moody’s Investor Service once again downgraded Cyprus’s
government bond ratings by two notches to Ba3 from Ba1 and research is now
being carried out for further possible downgrade.
The
Cypriot banks’ exposure to Greece totals 29 billion Euros, or 160% of GDP,
including both Greek government bonds and loans to Greek residents. As a
result, it is expected that an increase of support by the government may have
to be offered to the Cypriot banks due to their exposure to the Greek
government and economy and Moody’s will be reflecting these in the Cypriot
sovereign ratings.
On
25 June 2012 Financial Mirror published that, Cyprus has applied for the
European bailout fund due to its need of 1.8 billion Euros to recapitalize its
second largest lender, Cyprus Popular Bank. Stefanos Stefanou, a government
spokesman, said that negotiations are yet to be made to determine the precise
amount of money which will be lent to Cyprus. He also noted that despite the
aid request from the EU, the Cypriot government will continue seeking for a
loan from a country outside the EU, such as China and Russia, needed to help
cover its budget deficit (2011 deficit: 6.3% of GDP, one of the highest in the
Eurozone).
The country has already borrowed 2.5bn euros from Russia, whose business people are important customers of Cyprus's relatively large offshore financial sector which offers low tax rates. If Russia accepts to supply another loan with a low interest rate then Cyprus may be more willing to borrow the money to cover their refinancing needs from Russia instead of the EU.
On 25 June 2012 Fitch announced a downgrade of Cyprus’s rating by one notch from BBB- to BB+; a decision due to Cyprus’s heavy exposure to the Greek economy.
Cyprus is keen to protect its low 10% corporate taxation rate which makes it an attractive base for foreign companies. The government is reluctant to acquire loans from the EU due to fear of further austerity measures placed, which may obstruct corporations from situating themselves in Cyprus. (End of Country Developments)
Contact Information
Name: Mr. Thomas Markou
Quality: Company
Title: Director
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.54.54 |
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UK Pound |
1 |
Rs.84.19 |
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Euro |
1 |
Rs.71.11 |
INFORMATION DETAILS
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Report Prepared
by : |
MNL |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.