MIRA INFORM REPORT

 

 

Report No. :

338207

Report Date :

28.08.2015

 

IDENTIFICATION DETAILS

 

Name :

BOBRUISK MACHINE BUILDING PLANT JSC

 

 

Registered Office :

Karla Marksa Street 235, Bobruysk 213805, Mogilev Region 

 

 

Country :

Belarus

 

 

Year of Establishment :

1898

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Subject is manufacturers of centrifugal pumps

 

 

No. of Employee :

558

 

 

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

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Belarus

B2

B2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

BELARUS - ECONOMIC OVERVIEW

 

As part of the former Soviet Union, Belarus had a relatively well-developed, though aging industrial base; it retained this industrial base - which is now outdated, energy inefficient, and dependent on subsidized Russian energy and preferential access to Russian markets - following the breakup of the USSR. The country also has a broad agricultural base which is largely inefficient and dependent on government subsidies. After an initial burst of capitalist reform from 1991-94, including privatization of smaller state enterprises and some service sector businesses, creation of institutions of private property, and development of entrepreneurship, Belarus' economic development greatly slowed. About 80% of all industry remains in state hands, and foreign investment has been hindered by a climate hostile to business. A few banks, which had been privatized after independence, were renationalized. State banks account for 75% of the banking sector. Economic output, which had declined for several years following the collapse of the Soviet Union, revived in the mid-2000s thanks to the boom in oil prices. Belarus has only small reserves of crude oil, though it imports most of its crude oil and natural gas from Russia at prices substantially below the world market. Belarus exported refined oil products at market prices produced from Russian crude oil purchased at a steep discount. In late 2006, Russia began a process of rolling back its subsidies on oil and gas to Belarus. Tensions over Russian energy reached a peak in 2010, when Russia stopped the export of all subsidized oil to Belarus save for domestic needs. In December 2010, Russia and Belarus reached a deal to restart the export of discounted oil to Belarus. In 2015, Belarus continued to import Russian crude oil at a discounted price. However, the plunge in global oil prices heavily reduced revenues. Little new foreign investment has occurred in recent years. In 2011, a financial crisis began, triggered by government directed salary hikes unsupported by commensurate productivity increases. The crisis was compounded by an increased cost in Russian energy inputs and an overvalued Belarusian ruble, and eventually led to a near three-fold devaluation of the Belarusian ruble in 2011. In November 2011, Belarus agreed to sell to Russia its remaining shares in Beltransgaz, the Belarusian natural gas pipeline operator, in exchange for reduced prices for Russian natural gas. Receiving more than half of a $3 billion loan from the Russian-dominated Eurasian Economic Community (EurAsEC) Bail-out Fund, a $1 billion loan from the Russian state-owned bank Sberbank, and the $2.5 billion sale of Beltranzgas to Russian state-owned Gazprom helped stabilize the situation in 2012; nevertheless, the Belarusian currency lost more than 60% of its value, as the rate of inflation reached new highs in 2011 and 2012, before calming in 2013. As of January 2014, the final tranche of the EurAsEC loan has been delayed. In December 2013, Russia announced a new loan for Belarus of up to $2 billion for 2014. Notwithstanding foreign assistance, the Belarusian economy continued to struggle under the weight of high external debt servicing payments and trade deficit. In mid-December 2014, structural economic shortcomings were aggravated by the devaluation of the Russian ruble and triggered a near 40% devaluation of the Belarusian ruble. Belarus entered 2015 with stagnant economic growth and reduced hard currency reserves, with under one month of import cover.

 

Source : CIA

 

 

Company name

 

BOBRUYSKIY MASHINOSTROITELNIY ZAVOD OAO

 

JSC BOBRUISK MACHINE BUILDING PLANT (Requested)

 

 

ADDRESS

 

Street     : Karla Marksa Street 235

Town       : Bobruysk 213805

Region     : Mogilev Region 

Country    : Belarus

 

Telephone  : (375 225) 474 799 / 474 971 / 474 708 / 474 940 / 474 939 (Sales Department) / 474 784 (Marketing Department)

Fax            : (375 225) 474 971

E-Mail        : mail@bmbpump.by / kolos@bmbpump.by

Website      : www.bmbpump.by

 

Extended Name  : Bobruyskiy Mashinostroitelniy Zavod Otkrytoye
Aktsyonernoye Obshchestvo

 

English Translation : BOBRUISK MACHINE BUILDING PLANT JSC

 

Also known as : BMS Factory

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                                               Position

 

1. Valeriy Vsevolodovich Likhman          Managing Director

 

2. Aleksey Borisovich Sychev                Deputy Managing Director

 

3. Tatyana Eduardovna                           Chief Accountant 

 

4. Valentina Nikolaevna                          Deputy Chief Accountant

 

5. Elena Kolos                                      Head of Marketing Department

 

Total Employees : 558

 

 

PAYMENTS

 

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

 

Subject is a member of GMS Group of Companies.

 

Subject is a largest CIS producer of centrifugal pumps for oil refining, petrochemicals, mining, metallurgy and cement industry.

 

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 Belarusian importers.

 

Trade risk assessment: Normal

 

 

PRINCIPAL BANKERS

 

NAME     : BELVNESHECONOMBANK OJSC

 

Branch   : Internatsionalnaya Street 49

Town     : Bobruisk 213819

 

Telephone: (375 225) 123 920

Fax      : (375 225) 123 920    

 

Subject also has an account with :

 

Alfa-Bank ZAO

Sotsialisticheskaya Street 84

Bobruisk 213809

Telephone: (375 225) 717 643

Fax      : (375 225) 717 643

 

 

FINANCIAL INFORMATION

 

Private companies in Belarus are not required to publish or disclose balance sheets. However, the subject interviewed offered

the following information :

 

Sales Turnover   : B ROUBLE 133,300,000,000 – 2013 – exact

                        : B ROUBLE 121,699,000,000 – 2014 – exact

                        : B ROUBLE  47,417,000,000 – 2015 – exact *

                        : B ROUBLE 115,000,000,000 – 2015 – projected  

 

Sales Turnover  : B ROUBLE  26,439,000,000 – 2005 – exact

Excluding VAT  : B ROUBLE  29,822,000,000 – 2006 – exact

                        : B ROUBLE  42,933,000,000 – 2008 – exact

                        : B ROUBLE  25,096,000,000 – 2009 – exact

                        : B ROUBLE  37,065,000,000 – 2010 – exact

                        : B ROUBLE  82,346,000,000 - 2011 - exact

                        : B ROUBLE 142,071,000,000 - 2012 - exact

                        : B ROUBLE 129,001,000,000 - 2013 - exact

                        : B ROUBLE 119,239,000,000 - 2014 – exact

                       

Net Profit (Loss)       : B ROUBLE     453,000,000 - 2011 - exact

                        : B ROUBLE     545,000,000 - 2012 - exact

                        : B ROUBLE (11,895,000,000)- 2013 - exact

                        : B ROUBLE (44,576,000,000)- 2014 – exact

                        : B ROUBLE (40,367,000,000)- 2015 – exact *

 

* 6 months results (January - June).

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started : 1898

 

History : Subject was established in Belarus in 1898. In 2003, subject was converted into an open joint stock company with the present name and ownership.

 

Tax No. : UNP 700067266

 

Authorised Capital : B ROUBLE 84,685,968,260 (divided into

13,012,595 ordinary shares of B ROUBLE 6,508 each)

 

Paid-Up Capital : B ROUBLE 84,685,968,260 (divided into

13,012,595 ordinary shares of B ROUBLE 6,508 each)

 

Otkrytoye Aktsyonernoye Obshchestvo (Open Joint Stock Company) with the following shareholders :

 

   Shareholders                                     Percentage

 

1. Hydromashservice JSC                             57%

   Aviakonstructor Mikoyan Street 12

   Moscow 125252

   Russia 

   Telephone: (7 495) 664 8171

   Fax      : (7 495) 664 8172

 

2. The State Property Committee of the        42.72%

   Republic of Belarus

 

3. 491 physical entities                                0.28%

 

Affiliated companies of the subject company :

 

 

Associates

 

Subject is a member of the GMS Group of Companies, headed by:

 

Hydromashservice JSC                            

Aviakonstructor Mikoyan Street 12

Moscow 125252

Russia 

Telephone: (7 495) 664 8171

Fax      : (7 495) 664 8172

 

Other members of the group includes the following companies:

 

1. Livgidromash GMS

   Livny

   Russia

 

2. Livnynasos OAO

   Lyvny

   Russia

 

3. Sumskiy Zavod Nasosenergomash

   Sumy

   Ukraine

4. Zavod Promburvod OAO

   Minsk

   Belarus

 

5. Apollo Goessnitz GmbH

   Germany

 

6. KazanKompressorMash

   Kazan

   Russia

 

7. NIITurbokompressor im. V.B.Shneppa ZAO

   Kazan

   Russia

 

8. GMS Neftemash AO

   Tyumen

   Russia

 

9. Sibneftemash OAO

   Tyumen

   Russia

 

10.Sibnefteavtomatika OAO IPF

   Tyumen

   Russia

 

11.GiproTyumenNeftegaz OAO

   Tyumen

   Russia

 

12.Nizhnevartovskremservis ZAO

   Nizhnevartovsk

 

13.Tomskgazstroy OAO

   Tomsk

 

14.VNIIAEN OAO

   Sumy

   Ukraine  

 

15.Institute Rostovskiy Vodokanalproekt OAO 

   Rostov-na-Donu

 

16.Dimitrovgradhimmash OAO

   Dimitrovgrad       

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Manufacturers of centrifugal pumps.

 

NACE Code : 2813

 

Imports from Russia and Ukraine.

 

Exports to Russia, Ukraine, Kazakhstan, Baltic Countries, India, Vietnam, Georgia, Armenia, Azerbaijan, Bulgaria, Poland, Hungary and Serbia. 

 

 

FACILITIES

 

The Company has the following facilities :

 

Owned office premises, a manufacturing unit and storage facilities located at the heading address.

 

REGISTERED OFFICE

 

Karla Marksa Street 235

Bobruysk 213805

Migilev Region 

 

 

SPECIAL NOTE

 

You enquired on: JSC BOBRUISK MACHINE BUILDING PLANT. Please note that the correct name is as per heading.  

 

Interviewed: Elena Kolos (Head of Marketing Department).

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.06

UK Pound

1

Rs.102.35

Euro

1

Rs.74.97

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.