MIRA INFORM REPORT

 

 

Report No. :

333942

Report Date :

01.08.2015

 

IDENTIFICATION DETAILS

 

Name :

VEGA WORLD OOO

 

 

Registered Office :

Tumanyan Street 4/1, Kentron District, Yerevan 0001

 

 

Country :

Armenia

 

 

Date of Incorporation :

22.02.2008

 

 

Com. Reg. No.:

286.110.06791

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject is engaged in trading as importers, wholesalers and retailers of household appliances and electrical equipment

 

 

No. of Employee :

136 (Subject)

500 (Group)

 

 

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 :

DRAM 60,000,000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Slow but correct

 

 

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 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Armenia

B2

B2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

ARMENIA - ECONOMIC OVERVIEW

 

Under the old Soviet central planning system, Armenia developed a modern industrial sector, supplying machine tools, textiles, and other manufactured goods to sister republics, in exchange for raw materials and energy. Armenia has since switched to small-scale agriculture and away from the large agroindustrial complexes of the Soviet era. Armenia has only two open trade borders - Iran and Georgia - because its borders with Azerbaijan and Turkey have been closed since 1991 and 1993, respectively, as a result of Armenia's ongoing conflict with Azerbaijan over the separatist Nagorno-Karabakh region. Armenia's geographic isolation, a narrow export base, and pervasive monopolies in important business sectors have made it particularly vulnerable to the sharp deterioration in the global economy and the economic downturn in Russia. Armenia is particularly dependent on Russian commercial and governmental support and most key Armenian infrastructure is Russian-owned and/or managed, especially in the energy sector, including electricity and natural gas. Remittances from expatriates working in Russia are equivalent to about 20% of GDP and partly offset the country's severe trade imbalance. Armenia joined Russia in the Eurasian Economic Union upon the bloc’s launch in January 2015, even though the ruble’s sharp depreciation in December 2014 led to currency instability, inflation, and significant decrease of export from Armenia to Russia. Armenia joined the WTO in January 2003. The government has made some improvements in tax and customs administration in recent years, but anti-corruption measures have been ineffective. Armenia will need to pursue additional economic reforms and to strengthen the rule of law in order to regain economic growth and improve economic competitiveness and employment opportunities, especially given its economic isolation from two of its nearest neighbors, Turkey and Azerbaijan.

 

Source : CIA

Company NAME

 

VEGA WORLD OOO

 

 

ADDRESS

 

Street               : Tumanyan Street 4/1

Area                 : Kentron District

Town                : Yerevan 0001

Country             : Armenia

 

Telephone         : (374 10) 562 763 / 565 929 (Sales Department)

Fax                   : (374 10) 562 763

E-Mail               : vega.acc@mail.ru

Website            : www.vega.am   

 

Extended Name : Vega World Obshchestvo s Ogranichennoy
Otvetstvennostyu

 

English Translation : Vega World LLC

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                                  Position

 

1. Marina Pogosyan Norayri                   Managing Director

 

2. Goar Manukyan                                 Chief Accountant

 

Total Employees :                                 136 (subject)

                                                            500 (group)

 

 

PAYMENTS

 

No complaints have been heard regarding payments from local suppliers

or banks.

 

Subject is a member of Vega Group of Companies, which started its operation in 2003 and counts 16 specialized stores with over 500 employees.

 

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 Armenian importers.

 

Opinion on maximum credit : DRAM 60,000,000

 

Trade risk assessment : Normal

 

 

PRINCIPAL BANKERS

 

NAME               : HSBC BANK ARMENIA CJSC

 

Branch              : Teryan Street 66

Town                : Yerevan 0009

 

Telephone         : (374 10) 515 000 / 515 005

Fax                   : (374 10) 515 001     

 

The company also has an account with the following banks:

 

1. Ameriabank CJSC

   Lusavorich Street

   Yerevan 0015

   Telephone      : (374 10) 561 111

   Fax                : (374 10) 513 133 

 

2. ProCredit Bank

   Teryan Street 105/1 Citadel Business Center, 7th floor,

   District No.11

   Yerevan 0009

   Telephone      : (374 11) 202 020

   Fax                : (374 11) 202 021

 

3. Converse Bank CJSC

   Vazgen Sargsyan Street 26/1

   Yerevan 0010

   Telephone      : (374 10) 511 200 / 511 211

   Fax                : (374 10) 511 212

 

4. ACBA-Credit Agricole Bank CJSC

   Byron Street 1

   Yerevan

   Telephone      : (374 10) 318 888

   Fax                : (374 10) 543 485

 

5. InecoBank CJSC

   Tumanyan Street 17

   Yerevan

   Telephone      : (374 10) 510 510

   Fax                : (374 10) 510 573

 

6. BTA Bbank

   Nabaldyan Street 48/1

   Yerevan

   Telephone      :(374 10) 547 645

   Fax                :(374 10) 547 649

 

7. VTB Bank

   Nabaldyan Street 46

   Yerevan

   Telephone      : (374 8000) 8787

   Fax                : (374 10) 565 578

 

Subject previously had an account with:

 

Bank Turanalem

Toumanian Street 1

Yerevan 0002

Telephone         : (374 10) 547 453 / 547 452 / 520 598

Fax                   : (374 10) 519 698

 

 

FINANCIAL INFORMATION

 

Income Statement as at 31 December 2014 showed:

 

                                                                        31/12/2013                                31/12/2014

                                         

Net revenue                                           2,840,128,878                2,958,434,734

Cost of goods sold                               (2,381,268,356)              (2,454,549,175)

Gross profit                                          458,860,522                  503,885,559

Other operating income                         4,915,584                      11,865,074

Administrative and other expenses         (354,108,090)                (317,500,000)

Financial expenses                                            -                       (461,000,000)

Income (loss) before taxation                 109,668,016                  198,250,633

Income tax                                            (39,396,220)                  (35,650,127)

Net profit (loss)                                     70,271,796                    (298,399,494)

 

Financial year ends 31 December.

 

Sales Turnover              : DRAM 2,840,128,878 - 2013 - exact

                                                : DRAM 2,958,434,734 - 2014 - exact

                                                : DRAM 1,300,000,000 - 2015 – exact *

 

Net Profit                      : DRAM    70,271,796 - 2013 - exact

                                                : DRAM (298,399,494) - 2014 - exact

 

* 6 months result (January - June)

 

Financial year ends 31 December.

 

The following financial information applies to subject's

predecessor company, Vega on Germe OOO :

 

Sales Turnover              : US DLRS   25,824,785 - 2006 - exact

                                    : US DLRS   17,123,911 - 2007 - exact *

 

Net Profit                                  : US DLRS    1,418,673 - 2006 - exact

                                    : US DLRS    1,058,389 - 2007 - exact *

 

* 9 months results (Janury - September).

 

Financial year ends 31 December.

The following information applies to Vega Gulf FZE, subject’s affiliated company (latest available) :

 

Sales turnover               : US DLRS 10,000,000 - 2012 - exact                                           
                                    : US DLRS 12,000,000 – 2013 – exact                           

 

Net profit                      : not given

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started     : 22 February 2008

 

History              : The subject company was established in Armenia on 22 February 2008 to take over operations of its affiliated company, Vega On Germe OOO, which was trading since July 2003.

 

C.R. No.           : 286.110.06791 (issued on 22 February 2008)

 

Tax No.             : 02704414

 

Authorised Capital : DRAM 50,000

 

Paid-Up Capital : DRAM 50,000

 

Obshchestvo s Ogranichennoy Otvetstvennostyu (Limited Liability

Company) with the following sole shareholder:

 

Marina Pogosyan Norayri                  100%

 

Affiliated companies of the subject company :

 

Associates

 

Subject is a member of the Vega Group of Companies, which includes the following companies:

1. Vega Digital World

   Chavchavadze Street 37

   Tbilisi

   Georgia

   Telephone: (995 32) 265 678

   E-mail: georgia@vega.ae

 

2. Vega Gulf FZE

   Sheikh Zayed Road

   P.O. Box 93198

   Jebel Ali Free Zone

   UAE

   Telephone: (971 4) 227 5752

   Fax      : (971 4) 228 2761

 

3. Vega Pearls Electronics LLC

   P. 114 Building, 3rd Floor, Office No. 310

   Al Maktoum Road

   P.O Box 93198

   Dubai

   UAE

   Telephoen: (971 4) 227 5752 / 228 2760

   Fax      : (971 4) 228 2761

   E-mail: viga@emirates.net.ae

 

4. Vega Intinkom SPO

   Prague

   Czech Republic

   

Former associates:

 

1. Pretty Way OOO

   (formly known as Vega Group Co.)

   Admiral Isakov Avenue 48/1

   Yerevan

   Tel: (374 10) 733 135 / 747 309

   Fax: (374 10) 747 304

   E-mail: elecfair@vega.ae

   Established: 5 March 2001

   (sold)

 

2. Vega On Germe OOO

   Nalbandyan Street 1

   Yerevan 

   Telephone:  (374 10) 583 400 / 562 763 / 565 929

   Fax      :  (374 10) 562 763

   E-Mail   :  marketing@vega.ae / edgar@vega.ae

   Est: 30 July 2003

   C.R. No.: 03A061295

   (ceased trading in 2008)

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Trading as importers, wholesalers and retailers of household appliances and electrical equipment.

 

NACE Code: 4719

 

Imports from UAE, Singapore, China, Italy, France, Slovenia, Russia, Czech Republic, Ukraine and Poland.

 

Exports to Georgia and Russia.

 

 

FACILITIES

 

The Company has the following facilities :

 

Rented administrative offices located at the heading address as well as 16 retail outlets, 1 photo salon and 1 cafe located elsewhere in Armenia (see Branch Offices section).

 

Subject previously used the following mobile number:

 

Mobile: (374 93) 003 708

 

Subject was formerly located at:

 

Nalbandyana Street 9

Armenia 0010

Tel: (374 10) 544 237

Fax: (374 10) 548 892

E-mail: vesta@vega.ae

 

 

BRANCH OFFICES

 

1. Tumanyan Street 2/4

   Yerevan

   Telephone: (374 10) 56-59-29

 

2. Sayat-Nova Street 33

   Yerevan

   Telephone: (374 10) 581 633

 

3. Sebastya Street 141/5

   Yerevan

   Telephone: (374 60) 688 888

 

4. Sebastya(Service-Centre) Street 141/3

   Yerevan

   Telephone: (374 10) 533 647

 

5. Rubinyants Street 15/5

   Yerevan

   Telephone: (374 10) 299 371

 

6. Tigran Petrosyan Street 25/5

   Yerevan, Armenia

   Telephone: (374 10) 371 967

 

7. Amiryan Street 27/5

   Yerevan

   Telephone: (374 10) 534 341

 

8. Sayat-Nova Street 9/9A

   Gyumri, Armenia

   Telephone: (374 31) 255 630

 

9. Proshyan Street 77

   Gyumri

   Telephone: (374 77) 390 390

 

10.Zagaryan Street 

   Sanadzor 

   Telephone: (374 32) 242 111

 

11.S. Avetisyan Street 9A

   Spitak

   Telephone: (374 25) 521 088

 

12.174 Yerevanyan

   Tashir

   Telephone:(374 25) 422 723

 

13.Andranik Avenue 66

   Hrazdan

   Telephone: (374 98) 000 271

 

14.Artashatyan Street 18/1

   Ararat Marz

   Telephone: (374 77) 929 929

 

15.Shahumyan Street 32/6

   Kapan

   Telephone: (374 285) 20111

 

16.H. Avetisyan Street 1A/69

   Kapan

   Telephone: (374 285) 20111

 

17.Sisakan Street 33

   Sisian

   Telephone: (374 283) 26806

 

18.Z. Andranik Street 2/13

   Meghri

   Telephone: (374 94) 092 909

 

 

SPECIAL NOTE

 

The address given by you: TUMANYAN STREET 2/4 0010 EREWAN ARMENIA applies to subject's retail outlet address. Please note that subject's administrative office address is as per heading.

 

Interviewed : Goar Manukyan (Chief Accountant).

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.64.01

UK Pound

1

Rs.99.84

Euro

1

Rs.70.16

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

ASH

 

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.