MIRA INFORM REPORT

 

 

Report No. :

317786

Report Date :

28.04.2015

 

IDENTIFICATION DETAILS

 

Name :

EMBAWOOD GEORGIA SHPS 

 

 

Formerly Known As :

EMBAVUD JORJIA SHPS

 

 

Registered Office :

Marneuli Street 37 Isani-Samgori District  Tbilisi 0165

 

 

Country :

Georgia

 

 

Date of Incorporation :

15.11.1999

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

  • Manufacturers of home furniture, including wall units, living room furniture, children's furniture and kitchen furniture as well as furniture components.
  • Trading as importers, wholesalers and retailers of furniture and furniture accessories under the trading style “Kare”.

 

 

No. of Employee :

467

 

 

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 :

LARI 800,000

 

 

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)

Georgia

C1

C1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

GEORGIA ECONOMIC OVERVIEW

 

Georgia's main economic activities include cultivation of agricultural products such as grapes, citrus fruits, and hazelnuts; mining of manganese, copper, and gold; and producing alcoholic and nonalcoholic beverages, metals, machinery, and chemicals in small-scale industries. The country imports nearly all of its needed supplies of natural gas and oil products. It has sizeable hydropower capacity that now provides most of its energy needs. Georgia has overcome the chronic energy shortages and gas supply interruptions of the past by renovating hydropower plants and by increasingly relying on natural gas imports from Azerbaijan instead of from Russia. Construction of the Baku-T'bilisi-Ceyhan oil pipeline, the South Caucasus gas pipeline, and the Kars-Akhalkalaki Railroad are part of a strategy to capitalize on Georgia's strategic location between Europe and Asia and develop its role as a transit point for gas, oil, and other goods. The expansion of the South Caucasus pipeline, as part of the Shah Deniz II Southern Gas Corridor project, will result in a $2 billion foreign investment in Georgia, the largest ever in the country. Gas from Shah Deniz II is expected to begin flowing in 2019. Georgia's economy sustained GDP growth of more than 10% in 2006-07, based on strong inflows of foreign investment and robust government spending. However, GDP growth slowed following the August 2008 conflict with Russia, and sunk to negative 4% in 2009 as foreign direct investment and workers' remittances declined in the wake of the global financial crisis. The economy rebounded in 2010-13, but FDI inflows, the engine of Georgian economic growth prior to the 2008 conflict, have not recovered fully. Unemployment has also remained high. Georgia has historically suffered from a chronic failure to collect tax revenues; however, since 2004 the government has simplified the tax code, improved tax administration, increased tax enforcement, and cracked down on petty corruption, leading to higher revenues. The country is pinning its hopes for renewed growth on a determined effort to continue to liberalize the economy by reducing regulation, taxes, and corruption in order to attract foreign investment, with a focus on hydropower, agriculture, tourism, and textiles production. The government has received high marks from the World Bank for its anti-corruption efforts. Since 2012, the Georgian Dream-led government has continued the previous administration's low-regulation, low-tax, free market policies, while modestly increasing social spending, strengthening anti-trust policy, and amending the labor code to comply with International Labor Standards. The government published its 2020 Economic Development Strategy in early 2014 and former Prime Minister Bidzina IVANISHVILI launched the Georgian Co-Investment Fund, a $6 billion private equity fund that will invest in tourism, agriculture, logistics, energy, infrastructure, and manufacturing. In mid-2014, Georgia signed an association agreement with the European Union, paving the way to free trade and visa-free travel.

 

Source : CIA

 

 

Company name

 

EMBAWOOD GEORGIA SHPS 

 

 

ADDRESS

 

Street   : Marneuli Street 37

Area     : Isani-Samgori District

Town     : Tbilisi 0165

Country  : Georgia

Telephone: (995 32) 240 2989 (Accounts Department) / 240 2988 ext. 124 (Lyubov Tzhkhamadze) / 240 2990 / 245 4572 / Mobile (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 / accountant.georgia@embawood.com / office_georgia@embawood.com / luba.djgamadze@embawood.com

Website  : www.embawood.ge / www.kare-tbilisi.ge

 

Trading Style  : Kare

 

Extended Name  : Embavud Jorjia Shazguduli Pasukhismbgeblobis Sazagadoeba

 

English Translation : Embawood Georgia Ltd

 

Also known as : Embavud Jorjia ShPS

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                                Position

 

1. Vugar Sadigzada                              Managing Director

 

2. Elvin Ismailov                                    Commercial Director

 

3. Georgiy Tapbrundashvili                    Commercial Director

 

4. Sanan Omarov                                              Financial Director

 

5. Lyubov Dzhgamadze                          Chief Accountant     

 

6. Ms. Ketevan Buachidze                      Accountant

 

7. Nazim Ibragimov                                Logistics Manager 

8. Eka Gadzhieva                                  Human Resources Manager

 

 

Total Employees

 

467 (subject)

3,000 (group)

 

 

PAYMENTS

 

No complaints have been heard regarding payments from local suppliers or banks.

 

Subject is an affiliate of Embawood MMC (Azerbaijan) engaged in furniture manufacturing since 1999.

 

Associations inspire confidence and we consider it is acceptable to

deal with subject for MEDIUM amounts, although it is normal accepted

practice for international suppliers to deal on secured terms with

Georgian importers.

 

Opinion on maximum credit : LARI 800,000

 

Trade risk assessment : Normal

 

 

PRINCIPAL BANKERS

 

NAME     : TBC-BANK (TBILISI BUSINESS CENTRE BANK)

 

Branch   : 7 Marjanishvili Street 

Town     : Tbilisi 0102

 

Telephone: (995 32) 227 2727  

Fax      : (995 32) 277 2774

 

The company also has an account with the following banks:

 

1. Bank Respublika

   Grigol Abashidze Street 2

   Tbilisi

   Telephone: (995 32) 229 2336

   Fax      : (995 32) 229 2335

 

2. International Bank of Azerbaijan - Georgia ZS

   Leonidze Street 1

   Tbilisi 0105

   Telephone: (995 32) 299 8545 / 299 8547

   Fax      : (995 32) 299 8546

 

3. HSBC Bank Georgia JSC

   Tbilisi

   Rustaveli Avenue 15

   Tbilisi 0108

   Telephone: (995 32) 217 7777

   Fax      : (995 32) 217 7777

 

4. Privat Bank JSC

   Tsereteli Avenue 114

   Tbilisi 0164

   Telephone: (995 32) 235 0500

   Fax      : (995 32) 235 5080

 

5. Bank of Georgia

   Pushkin Steet 3

   Tbilisi 0107

   Telephone: (995 32) 299 7726 / 298 5304

   Fax      : (995 32) 299 7726 

 

6. Ziraat Bank JSC

   Agmashenebeli Avenue 148

   Tbilisi

   Telephone: (995 32) 294 3714

   Fax      : (995 32) 294 3078

 

 

FINANCIAL INFORMATION

 

Private companies in Georgia are not required to publish or disclose balance sheets. However, the subject interviewed offered the following information :

 

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

                          : LARI 39,500,000 – 2014 – 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

                          : not given       - 2013

                          : LARI  2,780,000 – 2014 – exact  

              

Financial year ends 31 December.

 

The following information applies to Embawood MMC in Azerbaijan:

 

Sales Turnover     : NEW MANAT  9,000,000 - 2006 - exact

                    : NEW MANAT 12,000,000 - 2007 - exact

                    : NEW MANAT 14,000,000 - 2008 - exact

                    : NEW MANAT 21,000,000 - 2009 – exact

                    : NEW MANAT 27,000,000 – 2010 – exact

                    : NEW MANAT 25,000,000 - 2011 - exact

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

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

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

 

Net Profit      : NEW MANAT    700,000 - 2006 - exact

                    : NEW MANAT    800,000 - 2007 - exact

                    : NEW MANAT    950,000 - 2008 - exact

                    : NEW MANAT  1,200,000 - 2009 – exact

                    : NEW MANAT  1,733,000 – 2010 – exact    

                    : NEW MANAT    820,000 - 2011 - exact  

                    : 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          : NEW MANAT 28,000,000 - 2012 - exact  

                    : not given            - 2013/2014 

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started : 15 November 1999

 

History : The subject company was established in Georgia on 15 November 1999 under the name Gantishveli ShPS. In July 2006, the subject company was acquired by Elshad Inshalla Oglu Abbasov. In May 2007, subject commenced production under new management. In May 2010, subject changed shareholding structure to the following : Elshad Inshalla Oglu Abbasov (68%) and Bashir Israpil Oglu Sultanov (32%). In February 2013, subject’s shareholding structure changed to the present. 

 

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

 

ID Code : 204379975

 

Authorized Capital : LARI 14,167,377 (increased from LARI 7,506,238 in 2014)

 

Paid up Capital : LARI 14,167,377 (increased from LARI 7,506,238 in 2014)

 

Shazguduli Pasukhismbgeblobis Sazagadoeba (limited liability

company) with the following director and shareholders :

 

Director

 

Vugar Sadigzada                  

(Azerbaijan national / Personal No.: P4320248, 01891000329)

     

    

   Shareholders                                                            Percentage

 

1. Elshad Inshalla Oglu Abbasov                                    36%

  (Azerbaijan national / Personal No.: P5057234)

 

2. Bashir Israpil Oglu Sultanov                                       32%

  (Russian national / Personal No.: 703362294)     

 

3. Mashhur Shahbaz Oglu Mammadov                            32%

  (Azerbaijan national / Personal No.: P5032789)

 

Affiliated companies of Embawood Georgia ShPS :

 

Associates

 

1. Embawood MMC                               

   Basti Bagirova Street 15B

   Yasamal District 

   Baku AZ1065

   Azerbaijan

   Telephone: (994 12) 436 7405 / 436 7407 / 436 9375 / 436 7940 /

   436 9374 / 436 9376 / Mobile (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 /

   vugar.akhundov@embawood.com

   Employees : 1,400

   Est.: 2 July 1999

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

   Tax No.: VOEN 6400009481

   Capital : NEW MANAT 3,750

   Shareholders :

           - Elshad Inshalla Oglu Abbasov  - 36%

           - Mashhur Shahbaz Oglu Mammadov - 32%

           - Bashir Israpil Oglu Sultanov  - 32%

 

2. 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 

 

3. Emba Story ShPS

   T. Erestavi Street 1

   Tbilisi

 

4. Myatbyakh Mebel OAO

   Baku

   (12,500 sq. m. owned premises)

 

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 of home furniture, including wall units, living room furniture, children's furniture and kitchen furniture as well as furniture components.

 

Trading as importers, wholesalers and retailers of furniture and furniture accessories under the trading style “Kare”.

 

NACE Codes: 3102 / 3109

 

Imports from Poland, Ukraine, Turkey, Azerbaijan, Iran, Germany, Bulgaria, Italy and Romania.

 

Exports to Turkmenistan, Tajikistan and Ukraine.

 

Exported previously to Kazakhstan.

 

 

FACILITIES

 

The Company has the following facilities :

 

41,000 sq. m. owned premises comprising administrative offices, a manufacturing plant and warehousing facilities located at the heading address as well as one retail outlet styled “Kare” located in Agmashenebeli Street 38, Tbilisi.

 

Subject’s further manufacturing unit which manufacturers furniture components located at Kardabani Street 20, Village Butanik.

 

Subject has 27 retail franchises located throughout Azerbaijan (see 'Branch Offices' below).

 

In 2009, subject also opened 5 showrooms, 1,000 sq. m. each in Tbilisi and sold them under the franchise trademark (see Branch Offices section).

 

 

REGISTERED OFFICE

 

Marneuli Street 37

Isani-Samgori District

Tbilisi 0165

 

 

BRANCH OFFICES

 

1. T. Eristavi Street 5

   Didube-Chugureti

   Tbilisi 0192

   Telephone: (995 32) 269 1787

 

2. A. Gobronidze Street

   Gldani-Nadzaladevi

   Tbilisi 0172

   Telephone: (995 32) 265 1878

 

3. Vazha-Pshavela Avenue 71

   Vake-Saburtalo

   Tbilisi 0186

   Telephone: (995 32) 220 7347

 

4. D. Aghmashenebeli Alley, 2a

   Vake-Saburtalo District

   Tbilisi 0131

   Telephone: (995 32) 230 8202

 

5. Kakheti Highway, 44

   Tbilsi 0190

 

6. Kakheti Highway 112

   Tbilisi 0151

 

7. Vazisubani settlement

   Tbilisi 0152

 

8. Tsabadze Street 8

   Tbilisi

 

9. Lermontov Street 57

   Batumi 6000

 

10.Nikea Street 4

   Kutaisi

 

11.I. Chavchavadze Ave., 50b/g

   Kutaisi 4600

 

12.Rustaveli Street 129

   Zugdidi 2100

 

13.26 May Street 21

   Kvemo Kartli Region 

   Marneuli 3000

 

14.Shartava Avenue 4

   Rustavi

 

15.Leonidze Street 16

   Rustavi 3700

 

16.Abastumani Highway

   Akhaltsikhe

 

17.Imereti Street 38

   Khashuri 5700

 

18.Tskinvali Highway 4

   Gori 1400

 

19.Cholokashvili Street 1

   Lagodekhi 2701

 

20.Telavi Highway

   Kvareli 4800

 

21.Tavisupleba Street 15

   Gurjaani 3800

 

22.A.Jorjadze Street 4/6

   Senaki 4100

 

23.Megobroba Street

   Dedoplistskaro 1600

 

24.D. Aghmashenebeli Street 59A

   Zestaponi 2000

 

25.Ninoshvili Street 18

   Chiatura 5500

 

26.D.Aghmashenebeli Street 38

   Sighnaghi 4216

 

27.Eristavi Street 8

   Ozurgeti 3500

 

28.Market area

   Poti 4400

 

 

SPECIAL NOTE

 

Interviewed: Lyubov Dzhgamadze (Chief Accountant).     

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.61

UK Pound

1

Rs.96.56

Euro

1

Rs.69.18

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

ANK

 


 

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.