MIRA INFORM REPORT

 

 

Report No. :

335109

Report Date :

10.08.2015

 

IDENTIFICATION DETAILS

 

Name :

SOVRANO OOO

 

 

Formerly Known As :

SOVRANO OBSHCHESTVO S OGRANICHENNOY OTVETSTVENNOSTYU

 

SOVRANO LLC / SOVRANO LTD 

 

 

Registered Office :

Tumanyan Street 20/1 Yerevan 0001

 

 

Country :

Armenia

 

 

Date of Incorporation :

14.08.2001

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Trading as importers, wholesalers and distributors of confectionery products, coffee and tea products, as well as alcoholic beverages

 

 

No. of Employees :

50

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

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 – 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

 

NOTE

 

In absence of financials, no credit limit could be recommended.

 

 

Company NAME

 

Sovrano OOO (Correct)

SOVRANO LTD (Requested)

 

 

ADDRESS

 

Street                           : Artem Mikoyan Street 17/2

Area                             : Nor Nok 5th Micro-district

Town                            : Yerevan 0079

Country                         : Armenia

Telephone                      : (374 10) 672 405 / 672 404 / 672 403 / Mobile (374 60) 499 994

Fax                               : (374 10) 672 404

E-Mail                           : info@sovrano.am

 

Extended Name            : Sovrano Obshchestvo s Ogranichennoy Otvetstvennostyu

 

Also Known As             : Sovrano LLC / Sovrano Ltd 

 

 

SENIOR COMPANY PERSONNEL

 

   Name                              Position

 

1. Aram Alexanyan          Managing Director

 

2. Vagan Grigorian         Chief Accountant

 

Total Employees : 50

 

 

PAYMENTS

 

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

 

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

although it is normal accepted practice for international suppliers to deal on secured terms with Armenian importers.

 

Opinion on maximum credit : DRAM 5,000,000

 

Trade risk assessment: Normal

 

 

PRINCIPAL BANKERS

 

Subject declined to name its bankers.

 

 

FINANCIAL INFORMATION

 

Private companies in Armenia are not required to publish or disclose balance sheets. Balance sheets are not available from other sources, and the subject interviewed declined to give any financial information, which the company regards as strictly confidential.

 

 

LEGAL STATUS AND HISTORY

 

Date Started                 : 14 August 2001

History                          : Subject was established in Armenia on 14 August 2001.

C.R. No.                       : 286.110.04295

Tax No.                         : 02558239

Authorised Capital         : DRAM 7,000,000

Paid-Up Capital             : DRAM 7,000,000

 

Obshchestvo s Ogranichennoy Otvetstvennostyu (Limited Liability Company) with the following shareholders :

 

3 undisclosed Armenian individuals                   100%

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Trading as importers, wholesalers and distributors of confectionery products, coffee and tea products, as well as alcoholic beverages.

 

Subject’s main product brands include the following :

 

- AVK

- Amchok

- Arkor

- Balconi

- Gusparo

- Dilmah

- Illy

- Nemiroff

- Nutkao

- Pyat Ozer

- Sorini

- KhBF.

NACE Code : 4636 / 4637

 

Imports from USA, Ukraine, Poland and Russia.

 

Subject does not export, all sales are domestic.

 

 

FACILITIES

 

The Company has the following facilities :

 

Rented administrative offices and storage facilities located at the heading address.

 

 

REGISTERED OFFICE

 

Tumanyan Street 20/1

Yerevan 0001

Armenia

 

 

SPECIAL NOTE

 

You enquired on: SOVRANO LTD. Please note that subject's correct registered name is as per heading.

 

Interviewed: Vagan Grigorian (Chief Accountant).

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.81

UK Pound

1

Rs.98.93

Euro

1

Rs.69.66

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TRU

 

               

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%)

 

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