MIRA INFORM REPORT

 

 

Report No. :

317788

Report Date :

27.04.2015

 

IDENTIFICATION DETAILS

 

Name :

EMBAWOOD MMC

 

 

Registered Office :

Basti Bagirova Street 15B, Yasamal District, Baku AZ1065

 

 

Country :

Azerbaijan

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

02.07.1999

 

 

Com. Reg. No.:

0502-A1-82

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Manufacturers and exporters of furniture such as wall units, living room furniture, office furniture, children's room furniture and kitchen furniture. Subject also manufactures melamine plates, accessories and complete sets of furniture.

 

 

No. of Employees :

1,300

 

 

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

 

Maximum Credit Limit :

New Manat 3,500,000

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Azerbaijan

 

 

 

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 has been attributable to large and growing oil and gas exports, but some non-export sectors also featured double-digit growth, including construction, banking, and real estate. Oil exports through the Baku-Tbilisi-Ceyhan Pipeline, the Baku-Novorossiysk, and the Baku-Supsa pipelines remain the main economic driver, but efforts to boost Azerbaijan's gas production are underway. The eventual completion of the geopolitically important Southern Gas Corridor between Azerbaijan and Europe will open up another, albeit, smaller source of revenue from gas exports. 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, Azerbaijan's ability to negotiate export routes for its growing gas production, and its ability to use its energy wealth to promote growth and spur employment in non-energy sectors of the economy.

 

 

Source : CIA

 

Company name

 

EMBAWOOD MMC

 

 

ADDRESS

 

Street   :                       Basti Bagirova Street 15B

 

Area     :                       Yasamal District 

 

Town     :                      Baku AZ1065

Country  :                      Azerbaijan

 

Telephone:                    (994 12) 436 7405 / 436 7407 / 436 9375 / 436 7940 / 436 9374 / 436 9376 / Mobile (994 55) 505 1140 (Tamerlan Kurtiev) / (994 50) 362 3241 / (994 55) 221 7790 / (994 50) 245 9715 / (994 70) 777 0070 / (994 50) 250 1046 (Eldar Mammadov) / (994 55) 222 6254 (Eldar Mammadov) / (994 55) 505 1199 (Vugar Akhundov)

Fax      :                        (994 12) 431 0081 / 431 5931

E-Mail   :                       office@embawood.com / meded.rustamov@embawood.com /

karim.mammedov@embawood.com / elder.mammadov@embawood.com / info@embawood.com / elshan.akperov@embawood.com / tamerlan.kurtiev@embawood.com

Website  :                     www.embawood.az

 

Trading Style :               Ideal Dizayn / Ideal Design / Dolce Noch / Madeyra   

 

English Translation :      Embawood Ltd

 

Also Known As :           Embawood Mekhdud Mesuliatli Camiyetti

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                                             Position

 

1. Elshad Inshalla Oglu Abbasov                        Managing Director

 

2. Tamerlan Kurtiev                                            Group Chief Financial Officer

 

3. Eldar Mammedov                                                      Financial Manager

 

4. Azad Hamudullazade                                     Executive Director   

 

5. Ilkham Urudzhev                                            Chief Accountant

 

6. Elshan Akperov                                             Procurement Manager

7. Rustam Hasanov                                           Accountant

 

8. Sehavet Mirzoev                                            Accountant

 

9. Aslan Valiyev                                                Senior Marketing Specialist

 

10.Asif Sadigov                                                Strategic Management Specialist 

 

Total Employees :                                             1,300 (subject)

                                                                         3,000 (group)

 

 

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.

 

Opinion on maximum credit :                             NEW MANAT 3,500,000 (higher amounts may be considered with assurances from the  shareholders)

 

Trade risk assessment :                                     Normal

 

 

PRINCIPAL BANKERS

 

NAME     :         INTERNATIONAL BANK OF AZERBAIJAN

 

Branch   :          Nizami Avenue 67

Town     :          Baku AZ1005

 

Telephone:        (994 12) 498 1053 / 493 1842

Fax      :            (994 12) 493 4091 / 498 1158

 

The company also has an account with the following banks:

 

1. Bank Technique OJSC

   M. K. Ataturk Avenue, 1107-Block, Narimanov District

   Baku AZ1069

   Telephone:     (994 12) 447 7744

   Fax      :         (994 12) 447 7744

 

2. Yapi Kredi Bank Azerbaijan QSC (Fmly Kocbank Azerbaijan Jsb)

   28 May Street 5

   Baku AZ1014

   Telephone:     (994 12) 497 7795

   Fax      :         (994 12) 497 0276

3. DemirBank ASC

   Garabagh Street 31

   Narimanov District

   Baku AZ1008

   Telephone:                 (994 12) 444 7130

   Fax      :                     (994 12) 496 0977

 

4. Unibank

   Rashid Behbudov Street 57

   Baku AZ1022

   Telephone:                 (994 12) 498 2244

   Fax      :                     (994 12) 447 9341

 

5. Bank of Baku

   Ataturk Avenue 42

   Baku AZ1000

   Telephone:                 (994 12) 447 0055

   Fax      :                     (994 12) 498 8278

 

6. VTB Bank (Azerbaijan) OJSC

   96 Nizami Street

   Baku AZ1010

   Telephone:                 (994 12) 436 8100

   Fax      :                     (994 12) 436 8101

 

7. Pasha Bank ASC

   Yusif Mammadaliyev Street 15

   Baku AZ1005

   Telephone:                 (994 12) 496 5000

   Fax      :                     (994 12) 496 5010

 

 

FINANCIAL INFORMATION

 

Private companies in Azerbaijan are not required to publish or

disclose balance sheets. However, the subject interviewed offered

the following information :

 

Sales Turnover      :                   US DLRS 165,000,000 - 2012 - exact

                    :                           US DLRS 195,000,000 - 2013 - exact

                    :                           US DLRS 190,000,000 – 2014 – exact

 

Net Profit          :                       US DLRS  26,000,000 - 2012 - exact

                    :                           US DLRS  32,500,000 - 2013 – exact

                    :                           US DLRS  30,000,000 – 2014 - exact    

  

Financial year ends 31 December.

 

The following financial information applies to the group :

 

Sales Turnover      :       US DLRS 189,000,000 - 2012 - exact

                    :               US DLRS 240,000,000 - 2013 – exact

                    :               US DLRS 250,000,000 – 2014 - exact

 

Net Profit          : not given but stated to be profitable

 

Financial year ends 31 December.

 

The following financial information applies to Embawood Georgia ShPS, Tbilisi :

Sales Turnover            : LARI 19,000,000 - 2008 - exact

                          :         LARI 30,000,000 - 2009 – exact 

                          :         LARI 33,000,000 – 2010 – exact

                          :         LARI 35,000,000 – 2011 – exact

                          :         LARI 36,340,000 – 2012 – exact

                          :         LARI 44,600,000 – 2013 – exact

 

Net profit                :     LARI  2,300,000 – 2008 – exact

                          :         LARI  4,000,000 – 2009 - exact

                          :         LARI  5,800,000 – 2010 – exact   

                          :         LARI  6,500,000 – 2011 – exact

                          :         LARI  3,000,000 – 2012 – exact

              

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started : 2 July 1999

 

History : The subject company was established in Azerbaijan on 2

July 1999 on the basis of Embe MMC which was operating since 1996.

Initially subject’s shareholding structure was as follows : Elshad Abbasov (50%) and Makhshur Mamedov (50%). On 1 March 2010, subject’s shareholding structure changed to the present. In March 2010 subject took over assets and operations of Ideal-Dizayn MMC in business since 22 November 2001.

 

C.R. No. :                                 0502-A1-82 (Ministry of Justice)

 

Tax No.:                        VOEN 6400009481

 

Authorised Capital :       NEW MANAT 3,750 (increased from NEW MANAT 2,000] on 1 March 2010)

 

Paid up Capital :           NEW MANAT 3,750 (increased from NEW MANAT 2,000] on 1 March 2010)

 

Mekhdud Mesuliatli Camiyetti (limited liability company) with the following shareholders :

 

                                                                                    Percentage

 

1. Elshad Inshalla Oglu Abbasov                                     36%

  (Azerbaijan national / Personal No.: 3857250)

 

2. Makhshur Mamedov                                                     32%

   (Azerbaijan national)

 

3. Bashir Israpil Oglu Sultanov                                         32%

  (Russian national / Personal No.: 703362294)     

 

Affiliated companies of Embawood MMC :

 

Associates

 

1. Embawood Ukraina OOO

   V. Chernovola Street 36

   Sambor 81400

   Lvovskaya oblast

   Ukraine

   Telephone: (38 3236) 60594

   Fax      : (38 3236) 60594

   Managing Director : Vugar Sadikzade

   Logistics Manager : Elchim Babashev 

 

2. Emba Stroy ShPS

   T. Erestavi Street 1

   Tbilisi.

 

3. Myatbyakh Mebel OAO

   Baku

   (12,500 sq. m. owned premises)

 

4. Embawood Georgia ShPS

   Marneuli Street 37

   Tbilisi 0165

   Georgia

   Telephone:                 (995 32) 240 2989 / 240 2988 ext. 124 (Lyubov Tzhkhamadze) / 240 2990 / 245 4572 / (995 595) 906 268 (Javid   Yolchev) / (994 50) 235 9481 (Karim Mammedov Financial Manager at  Embawood MMC)   

   Fax      :                     (995 32) 240 2988 / 240 2990

   E-Mail   :                    embawoodgeorgia@gmail.com / eka.comakhidze@embawood.com

                                    / accountant.georgia@embawood.com / office_georgia@embawood.com

   Managing Director :    Almaz Alimerdan Oglu Guliyev

   Employees :              467

   Est.:                          15 November 1999

   C.R. No. :                  06/4-203

   ID Code :                   204379975

   Capital :                     LARI 7,506,238

   Shareholders :

           - Elshad Inshalla Oglu Abbasov  - 36%

           - Bashir Israpil Oglu Sultanov  - 32%

           - Mashhur Shahbaz Oglu Mammadov - 32%

 

5. Embawood Kazakhstan TOO

   Kabanbay Batyr Street 140/140а

   Almalinskiy District

   Almaty 050012

   Telephone:                 (7 727) 234 7940 / Mobile (7 701) 206 2797

   Fax      :                     (7 727) 234 7940

   E-Mail   :                    zakir-designer@rambler.ru

   Tax No.  :                   RNN 600700584433

   Business Identification No.: BIN 070240009924

   Est.:                          6 February 2007

   The above company has registered branch office in Shymkent.

 

6. Bank Olmayan Kredit Tashkilati Embafinans MMC

   Basti Bagirova Street 15B

   Yasamal District 

   Baku AZ1065

   Telephone:                 (994 12) 436 9375 / 436 7940

   Fax      :                     (994 12) 436 9375

   Managing Director :    Ilgar Adil Oglu Tagiyev 

   Est.:                          25 June 2012

   Tax No.:                     VOEN 1302932691

   Capital :                     NEW MANAT 500,000

 

Subject’s former affiliated companies :

 

1. Ideal Dizayn MMC  

   Fatali Khan Khoisky kuch. 106

   Baku AZ1072

   Tel/Fax:                     (994 12) 442 0870

   Employs :                  300 (when in operations)

   Est.:                          22 November 2001

   Tax No.:                     VOEN 1500079171

   Sole Shareholder :

   (manufacture to order and retail of furniture; rented offices at   

   Fatali Khan Khoisky Street 106; owned 5-storey factory at

   Khirdalan gasabasi, Baku)

 

2. Embavvood Insaat MMC

   Basti Bagirova Street 6, Mahalla 577, Flat 13

   Yasamal District

   Baku AZ1022

   Managing Director :    Mashur Sahbaz Ogly Mammedov

   Est.:                          1 December 2005

   Tax No.:                     VOEN 1400718031

  (currently dormant)     

 


ACTIVITIES

 

The Company is involved in the following activities :

 

Manufacturers and exporters of furniture such as wall units,

living room furniture, office furniture, children's room furniture and kitchen furniture.

 

Subject also manufactures melamine plates, accessories and complete

sets of furniture.

 

NACE Codes: 3101 / 3102 / 3109

 

Imports from Turkey, Bulgaria, Poland, Germany, Italy, Latvia,

Lithuania, Ukraine, Russia, Romania, China and Spain.

 

Exports to Kazakhstan, Uzbekistan, Kyrgyzstan, Turkey, Iran, Russia, Turkmenistan, Ukraine, Tajikistan and Georgia.

           

Subject’s suppliers include: Kronospan, Kronostar, Egger, Pleiderer, Roma Plastik, Hafele, Samet, Kroening, Lignadecor, Pfleiderer Grajewo, Aydin Tekstil, Isbir Sunger, Boyteks, Kadifeteks, Nova Sunger, Henkel, Jowat, Ive and Dewilux.

 

 

FACILITIES

 

The Company has the following facilities :

Owned administrative offices located at the heading address as well as a branch office/factory located at Shahriara Street 2 (fmly G. Sultanov St), Masally AZ4400. Subject also has 2 manufacturing units located in Sumgait and Khirdalan.

 

Subject has 129 retail outlets located throughout Azerbaijan.

 

Subject also has around 100 delivery vans for distribution purposes.

 

Until May 2011 subject was located at :

 

Alatava Street 2

Baku AZ1102

Telephone:  (994 12) 431 9842-4 / 431 9843 / 442 0870

Fax      :  (994 12) 431 0081 / 431 5931

 

 

REGISTERED OFFICE

 

Dadash Bunyadzade Street 1A, Flat 21

Qaradag District

Lokbatan Village

Baku AZ1063

 

Until 27 May 2010 subject’s registered offices was located at:

 

Shahriara Street 2 (fmly G. Sultanov St)

Masally AZ4400

 

 

BRANCH OFFICES

 

1. Muhammed Hadi Street 63

   Xatai district

   Baku

   Telephone: (994 12) 570 3837 / 470 5945  

  

2. Q.Qarayev Avenue 39/47

   Nizami district

   Baku

   Telephone: (994 12) 423 7170

 

3. 12 Hasan Aliyev Street

   Nesimi district

   Baku

   Telephone: (994 12) 596 0074 / 596 0440 

 

4. Azadliq Avenue 187

   Nesimi district

   Baku

   Telephone: (994 12) 562 4334 / 562 4224

 

5. Abbas Sherifzade Street 198

   Yasamal district

   Baku    

   Telephone: (994 12) 432 6442

 

6. Ismayilbey Qutqashinli Street 9

   Qabala Trade Center

   Qabala

   Telephone: (994 50) 220 5521

 

7. Haydar Aliyev Avenue

   Shirvan

   Telephone: (994 197) 54740

 

8. Tibilisi highway

   Qazax

   Telephone: (994 50) 315 9854

 

9. 2-th microdistrict

   Sumqayit

   Telephone: (994 18) 642 4161 

 

10.Seybetin Street

   Masalli

   Telephone: (994 50) 648 6475 / 399 9585

 

11.Salman Mumtaz Street

   Sheki

   Telephone: (994 177) 46311

 

12.Atakishili village

   Kurdamir

   Telephone: (994 145) 66201

 

13.Qabala highway

   Agdash

   Telephone: (994 193) 55222

 

14.Haydar Aliyev Avenue

   Trade Center

   Zardab 

   Telephone: (994 135) 54224

 

15.Nizami Street

   Barda

   Telephone: (994 110) 55102

 

16.Dashburun  settlement

   village Shahseven 1-th.

   Beylaqan 

   Telephone: (994 152) 22355

 

17.Bazar territory

   Qusar

   Telephone: (994 50) 356 2030

 

18.Haydar Aliyev Avenue

   Agstafa

   Telephone: (994 244) 52858

 

19.Shahriara Street 2 (fmly G. Sultanov St)

   Masally AZ4400

   Telephone:  (994 151) 53802

   Fax      :  (994 151) 51902

 


SPECIAL NOTE

 

The address which you provided: Alatava Street 2, 1102 Baku applies to subject's former address. Please note that subject's current administrative office address is as per heading.

 

The telephone number which you provided: (994 12) 442 0870 applies to subject’s former telephone number. Subject’s current telephone number is as per heading.

  

Interviewed : Tamerlan Kurtiev (Group Chief Financial Officer).


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.40

UK Pound

1

Rs.95.42

Euro

1

Rs.68.49

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

VNT

 

               

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.