MIRA INFORM REPORT

 

 

Report No. :

351187.2

Report Date :

22.12.2015

 

IDENTIFICATION DETAILS

 

Name :

UNITOOLS LLC

 

 

Registered Office :

Parpetsi Street 22-14, Yerevan 0002

 

 

Country :

Armenia

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

04.03.2004

 

 

Com. Reg. No.:

286.110.05266

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Trading as importers, retailers and distributors of garden tools, machinery and equipment, such as :

- snowploughs;

- watering equipment;

- watering accessories;

- seeds;

- fertilizers;

- mini greenhouses;

- home appliances;

- hammocks;

- electrical equipment.

 

 

No. of Employees :

8

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

DRAM 2,000,000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

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 REPORT

 

CO. NAME :                  UNITOOLS LLC (CORRECT)

                                    UNITOOL LLC (REQUESTED)

 

 

ADDRESS

 

Street   :                       Davit Anhaght Street 4 - 44

Area     :                       Kanaker‐Zeytun District

Town     :                      Yerevan 0014

Country  :                      Armenia

Telephone:                    (374 10) 239 697 / Mobile (374 99) 239 696 (Hovhannes Sergeevich Mkrtumyan) / (374

91) 570 420 / (374 55) 530 525 (Hovhannes Sergeevich Mkrtumyan)

Fax      :                        (374 10) 239 697

E-Mail   :                       unitools@mygarden.am

Website  :                     www.mygarden.am

Trading Style :               MY GARDEN

Also Known As :           Unitools OOO

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                                            Position

 

1. Hovhannes Sergeevich Mkrtumyan                 Managing Director

 

2. Vardan Sergeevich Mkrtumyan                                   Deputy Director / Commerce

 

Total Employees :                                             8

 

 

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 2,000,000

 

Trade risk assessment: Normal

PRINCIPAL BANKER

 

NAME     : PROCREDIT BANK CJSC

Branch   : Teryan Street 105/1

Town     : Yerevan 0009

Telephone: (374 11) 202 020

Fax      : (374 11) 202 021   

 

 

FINANCIAL INFORMATION

 

Balance sheets as at 31 December 2014 showed:

 

                                                          31/12/2014           

                                                           (in DRAM)

 

ASSETS

 

Non-current assets                                           214,803

Real estate, construction and industrial equipment           214,803

Current assets                                           154,660,934

Reserves                                                 100,647,318

Buyers                                                     4,955,482

Other receivables and income / prepaid expenses           45,243,260

Cash                                                       3,814,874

TOTAL ASSETS                                             154,875,737

 

LIABILITIES & EQUITY

 

Equity                                                   (16,901,021)

The authorized capital of                                     50,000

Retained earnings                                        (16,951,021)

Current liabilities                                      171,776,758

Credit / Loans                                            42,102,518

Companies contractors                                      2,929,995

Other short-term liabilities, income & prepaid expenses  126,744,245

TOTAL LIABILITIES & EQUITY                               154,875,737

 

INCOME STATEMENT

 

Net revenue from sales                                 79,717,327.84

Other revenues, net

Cost of sales                                          41,223,832.91

Gross profit                                           38,493,494.93

Administrative and other operating expenses            21,972,790.68

The result of operating activities                     16,520,704.25

The result of financial activities                    (14,678,935.31)

Net Profit                                              1,841,768.94

 

Financial year ends 31 December.

 

 

HISTORICAL PROFIT AND LOSS ACCOUNT

 

Sales Turnover              : DRAM  79,717,327 - 2014 - exact

                                     : EURO     280,000 - 2015 – exact *

                                                : DRAM 105,000,000 - 2015 - projected

 

Net Profit                      : DRAM   1,841,769 - 2014 – exact

                                                : DRAM   2,200,000 – 2015 – projected

 

Value of Current Contracts : DRAM 5,000,000 (as of December 2015)

 

Total Value of Stock Held : DRAM 92,715,806 (as of December 2015)

 

Total Invested Capital : DRAM 93,000,000 (as of3 December 2015)

 

* 10 months results (January - October).

 

Financial year ends 31 December.

 

The following financial information applies to subject’s affiliated company, Lambron-Pharmimpex LLC :

 

Sales Turnover               : DRAM   615,000,000 - 2014 - exact

                       

Net Profit                       : DRAM    13,591,500 - 2014 - exact

 

Financial year ends 31 December.

 

The following financial information applies to subject’s affiliated company, Richter-Lambron Armenian-Hungarian JV Co. Ltd :

 

Sales Turnover               : DRAM 7,182,000,000 - 2014 - exact

                       

Net Profit                       : DRAM   115,630,200 - 2014 - exact

 

Financial year ends 31 December.

 

The following financial information applies to subject’s affiliated company, Gedeon Richter Pharmacy JV LLC :

 

Sales Turnover               : DRAM  3,270,000,000 - 2014 - exact

                        

Net Profit                      : DRAM     58,860,000 - 2014 - exact

 

Financial year ends 31 December.

 

LEGAL STATUS AND HISTORY

 

Date Started : 4 March 2004

 

History : Subject was established in Armenia on 4 March 2004.

 

C.R. No. : 286.110.05266

 

Tax No. : 02571784

 

Authorised Capital : DRAM 50,000

 

Paid-Up Capital : DRAM 100,000

 

Limited Liability Company with the following shareholders :

 

                                                            Percentage

 

1. Armen Davtyan                                  25%

  (Russian national)

 

2. Ruben Astvacatryan                                       25%

  (Russian national)

 

3. Ara Sahakyan                                    25%

  (Armenian national)

 

4. Levon Saghatelyan                                        25%

  (Armenian national)

 

Affiliated companies of Unitools LLC :

 

Associates

 

1. Lambron-Pharmimpex LLC    

   Ghazar Parpetsu Street 22

   Kentron Districtr

   Yerevan 0002

   Telephone: (374 10) 538 796 / 533 265 / 531 500

   Fax      : (374 10) 538 796

   Managing Director : Levon R. Saghatelyan

   ID Code : 02500036               

   Shareholders :

      - Armen Davtyan                                25%

      - Ruben Astvacatryan                           25%

      - Ara Sahakyan                                 25%

      - Levon Saghatelyan                            25%

 

2. Richter-Lambron Armenian-Hungarian JV Co. Ltd

   Arshakunyats Avenue 2nd Lane 2

   Kentron District

   Yerevan 0023 

   Telephone: (374 10) 544 406 / 538 796 / 533 265 / 531 500

   Fax      : (374 10) 538 796

   General Manager : Armen E. Davtyan

   Managing Director : Vahan Karganyan

   ID Code : 02542882               

   Shareholders :

      - Lambron-Pharmimpex LLC                    49%

   (registered address : Ghazar Parpetsu Street 22, Kentron District,

   Yerevan 0002)

 

3. Gedeon Richter Pharmacy JV lLC

   Orbeli Yeghbayrneri Street 14

   Arabkir District

   Yerevan 0028

   Telephone: (374 10) 229 620  

   Managing Director : Aram Aghvanyan

   ID Code : 02587972               

   Shareholders :

      - Lambron-Pharmimpex LLC                    49%

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Trading as importers, retailers and distributors of garden tools, machinery and equipment, such as :

- snowploughs;

- watering equipment;

- watering accessories;

- seeds;

- fertilizers;

- mini greenhouses;

- home appliances;

- hammocks;

- electrical equipment.

 

Subject provides landscape design, garden care, installation of irrigation systems and gardening services.

 

Distributors for :

 

- STIHL (Germany);

- Viking (Austria);

- Wolf ­ Garten (Germany);

- Fiskars (Finland);

- Claber (Italy);

- Stiga (Swiss);

- Romberg (Germany);

- Jobek (Germany);

- Hozelock (UK);

- Johnsons (UK);

- IKRA & Mogatec (Germany).

 

Subject’s main suppliers include :

 

- Ikra GmbH;

  Schlesier Strasse 36 

  Münster-Altheim D-64839

  Germany

  Contact person : Arthur Plaskon

  Telephone: (49 6071) 300 326 / Mobile (49 162) 444 4595

  E-Mail   : arthur.plaskon@ikra.de

 

- VIKING GmbH;

  Hans Peter Stihl-Strasse 5

  Langkampfen/Kufstein Osterrreich 6336

  Austria

  Contact person : Antonina Paregger,

  Telephone: (43 5372) 697 2337

  Fax      : (43 5372) 6972 9337

  E-Mail   : antonina.paregger@viking.at

- Andreas STIHL AG & CO. KG;

  Badstrasse 115

  Waiblingen D-71336

  Germany

  Contact person : Dina Cyron

  E-Mail  :  dina.cyron@stihl.de

 

- Fiskars Garden Oy Ab;

  Hämeentie 135A

  P.O. Box 130

  Helsinki FI-00561 

  Finland

  Contact person : Matvei Porval

  Mobile   : (358 40) 482 3778

  E-Mail   :  matvei.porval@fiskars.com

 

- Claber SPA;

  Via Pontebbana 22

  Fiume Veneto (PN) 33080 

  Italy

  Contact person : Michele Livotti

  Telephone: (39 0434) 958 836 

  Fax      : (39 0434) 957 193

  E-Mail   : michele.livotti@claber.it

 

- MTD Products AG;

  Industrie Street 23

  Saarbruecken –Bubingen D-66129

  Germany

  Contact person : Carina Pacyga

  Telephone: (49 0680) 579 505 / 579 401

  Contact person : carina.pacyga@mtdproducts.com

 

- Hozelock Ltd;

  891 route des Frкnes – ZI Nord Arnas

  Villefranche Cedex BP 30424 69653

  UK

  Contact person : David Anegas

  Telephone: (33 04) 7462 4816 / Mobile (33 06) 1731 2671

  E-Mail : d.anegas@hozelock-exel.com

 

- GGP Italy S.P.A..

  Via del Lavoro 6

  Castelfranco Veneto (TV) 31033 

  Italy

  Contact person : Federico Simonato

  Telephone: (39 0423) 450 612

  Fax      : (39 0423) 450 670

  E-Mail   : federico.simonato@ggp-group.com

 

NACE Codes : 4776 / 4799

 

Imports from Europe, Finland, Germany, Austria, UK, Italy and France.

 

Subject does not export, all sales are domestic.

 

 

FACILITIES

 

The Company has the following facilities :

 

140 sq. m. rented premises comprising administrative offices, a retail outlet and storage facilities located at the heading address as well as storage facilities located at Komitas Street 59, Yerevan and premises comprising administrative offices at Karapet Parpetsi Street 22-14 Yerevan.

 

Subject plans to open 400 sq. m. retail outlet by February 2016 at :

 

Noravan Dst Street 55      

Verin Ptghni

 

 

REGISTERED OFFICE

 

Parpetsi Street 22-14

Yerevan 0002

SPECIAL NOTES

 

This amended report is sent as a replacement of our previous report Ref : 760577.01.C.TYN.X / dated 26/11/2015

 

You enquired on : “UNITOOL LLC”. Please note that the correct name is as per heading.

 

The address given by you : “Parpetsi Str 22 14” is misspelt and applies to subject's registered office address. Please note that subject’s correct administrative office address is as per heading.”

 

The postal code given by you : “000 Yerevan” is incorrect. Please note that subject’s correct postal code is as per heading.

 

Interviewed : Hovhannes Sergeevich Mkrtumyan (Managing Director).

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.66.32

UK Pound

1

Rs.98.98

Euro

1

Rs.72.13

Dram

1

Rs.0.14

 

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

 

               

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.