MIRA INFORM REPORT

 

 

Report No. :

333000

Report Date :

29.07.2015

 

IDENTIFICATION DETAILS

 

Name :

ABC-TELECOM MMC

 

 

Registered Office :

Hanifa Alasgarov Street 20, Flat 17, Nasimi District, Baku AZ1007

 

 

Country :

Azerbaijan

 

 

Date of Incorporation :

11.10.2006

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject is trading as importers, wholesalers and retailers of mobiles and Azercell mobile cards.

 

 

No. of Employee :

300

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

New Manat 100,000

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)

Azerbaijan

B2

B2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

AZERBAIJAN - ECONOMIC OVERVIEW

 

Azerbaijan's high economic growth has been attributable to large and growing oil and gas exports, but some non-export sectors also featured double-digit growth, including construction, banking, and real estate. Oil exports through the Baku-Tbilisi-Ceyhan Pipeline, the Baku-Novorossiysk, and the Baku-Supsa pipelines remain the main economic driver, but efforts to boost Azerbaijan's gas production are underway. The eventual completion of the geopolitically important Southern Gas Corridor between Azerbaijan and Europe will open up another, albeit, smaller source of revenue from gas exports. Azerbaijan has made only limited progress on instituting market-based economic reforms. Pervasive public and private sector corruption and structural economic inefficiencies remain a drag on long-term growth, particularly in non-energy sectors. Several other obstacles impede Azerbaijan's economic progress, including the need for stepped up foreign investment in the non-energy sector and the continuing conflict with Armenia over the Nagorno-Karabakh region. Trade with Russia and the other former Soviet republics is declining in importance, while trade is building with Turkey and the nations of Europe. Long-term prospects depend on world oil prices, Azerbaijan's ability to negotiate export routes for its growing gas production, and its ability to use its energy wealth to promote growth and spur employment in non-energy sectors of the economy.

Source : CIA

COMPANY NAME

 

ABC-TELECOM MMC (Correct)

 

ABC TELECOM LLC (Requested)

 

 

ADDRESS

 

Street               : Sh. Mehdiyev Street 138

Area                 : Yasamalskiy District

Town                : Baku AZ1141

Country             : Azerbaijan

 

Telephone         : (994 12) 437 2262 / 533 0101 (Marketing Department) / Mobile (994 50) 225 6676  

Fax                   : (994 12) 437 2262

E-Mail               : n.azimova@abc-telecom.az

Website            : www.kontakt.az

 

Trading Style     : Kontakt

 

Extended Name : ABC-Telecom Mehdud Mesuliyyetli Camiyyeti

 

English Translation : ABC-Telecom LLC

 

 

SENIOR COMPANY PERSONNEL

 

   Name                             Position

 

1. Elnur Marat Oglu Allakhverdiyev  Managing Director

 

2. Nigyar Azimova                   Chief Accountant

 

Total Employees                       : 300

 

 

PAYMENTS

 

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

 

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

however in view of the lack of financial information we recommend international suppliers exercise a degree of caution.

 

Opinion on maximum credit : NEW MANAT 100,000 (higher amounts may be considered with full fiscal disclosure)                               

 

It is normal accepted practice for international suppliers to deal on secured terms with Azerbaijani importers.

 

 

SIGNIFICANT CHANGES

 

WITH RESPECT TO ABC-TELECOM INITIATED INVESTIGATION INTO THE ARTIFICIAL PRICE

 

5 March 2015 (www.1news.az) : The specialists of the State Service for Antimonopoly Policy and Consumer Protection under the Ministry of Economy and Industry (MEI) of Azerbaijan discovered the facts of groundless increase of ABC-Telecom Ltd. prices for home appliances and mobile phones. According to the ministry, the facts revealed during the inspections carried out in the stores ABC-Telecom on the basis of consumer complaints. "Recently, the State Service received a lot of citizens, which indicated an artificial inflating LLC ABC-Telecom prices of household appliances," - the report says. In connection with the abuses in relation to company ABC-Telecom prosecuted for violation of antitrust laws. It should be noted that the Ministry, in particular, its subordinate State Service for Antimonopoly Policy and Consumer Protection, is continuing its intensive control measures in the consumer market in order to prevent possible abuses of the situation and artificial overpricing business entities [as a result of exchange rate of manat]. State Service warns that in respect of business entities that have committed an artificial increase in prices will be taken legal measures. In the case of goods in shops that are offered at higher prices, consumers should contact T The telephone help center "195-2" MEP. You can also call the State Service for Antimonopoly Policy and Consumer Protection under numbers: (99412) 498-15-01 and 498-15-04. It should be noted that the Board of Directors of the Central Bank of Azerbaijan (CBA) on February 21, 2015 the official exchange rate on February 21, 2015 has been set at 1.05 manat . The report, released by the Central Bank, said that this decision was taken in order to further stimulate the diversification of the national economy, increasing its competitiveness and export potential, and to ensure strategic stability of the international balance of payments and the country's solvency.

 

 

PRINCIPAL BANKERS

 

NAME               : YAPIKREDI BANK AZERBAIJAN CJSC

 

Branch              : Nasimi District, 678, C. Mammadguluzadeh Street 73 G

Town                : Baku AZ1078

 

Telephone         : (994 12) 497 7795

Fax                   : (994 12) 497 0276     

 

The company also has an account with :

 

Unibank

R.Behbudov Street 55

Baku AZ1022

Telephone: (994 12) 541 3333

Fax      : (994 12) 498 0953

 

 

FINANCIAL INFORMATION

 

Private companies in Azerbaijan 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 : 11 October 2006

 

History : The subject company was established in Azerbaijan on 11 October 2006.

 

Tax No.: VOEN 1401005061

 

Authorised Capital : NEW MANAT 20

 

Paid-Up Capital : NEW MANAT 20

 

Mehdud Mesuliyyetli Cemiyyeti (limited liability company) with the following sole shareholder:

 

Ibragim Bakhtiyar Oglu Suleymanly                      100%

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Trading as importers, wholesalers and retailers of mobiles and Azercell mobile cards.

 

NACE Code: 4690

 

Imports from Europe.

 

Subject does not export, all sales are domestic.

 

 

FACILITIES

 

The Company has the following facilities :

 

Owned office premises and storage facilities located at the heading address as well as 16 retail outlets styled “Kontakt” located throughout Azerbaijan.

 

 

REGISTERED OFFICE

 

Hanifa Alasgarov Street 20, Flat 17

Nasimi District

Baku AZ1007

 

 

SPECIAL NOTE

 

You enquired on: ABC TELECOM LLC. Please note that the correct name is as per heading.  

 

Interviewed: Nigyar Azimova (Chief Accountant). Subject's senior officials (Managing Director) is currently away on a prolonged holiday, in his absence staff is not authorized to divulge any financial information.   

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.03

UK Pound

1

Rs.99.72

Euro

1

Rs.70.88

 

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.