MIRA INFORM REPORT

 

 

Report No. :

348518

Report Date :

13.11.2015

 

IDENTIFICATION DETAILS

 

Name :

EVRO INVESTI SHPS

 

 

Registered Office :

Likhauri Chikhi (Pereulok) 10 Vake-Saburtalo  Tbilisi 0171

 

 

Country :

Georgia

 

 

Financials (as on) :

30.09.2015

 

 

Date of Incorporation :

01.07.2014

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Trading as importers, wholesalers, retailers and distributors of foodstuff including fish, seafood, dairy products and meat products.

 

 

No. of Employees :

11

 

 

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 Limits :

5000 Lari

 

 

Status :

Moderate

 

 

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)

Georgia

C1

C1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

GEORGIA - ECONOMIC OVERVIEW

 

Georgia's main economic activities include cultivation of agricultural products such as grapes, citrus fruits, and hazelnuts; mining of manganese, copper, and gold; and producing alcoholic and nonalcoholic beverages, metals, machinery, and chemicals in small-scale industries. The country imports nearly all of its needed supplies of natural gas and oil products. It has sizeable hydropower capacity that now provides most of its energy needs. Georgia has overcome the chronic energy shortages and gas supply interruptions of the past by renovating hydropower plants and by increasingly relying on natural gas imports from Azerbaijan instead of from Russia. Construction of the Baku-T'bilisi-Ceyhan oil pipeline, the South Caucasus gas pipeline, and the Kars-Akhalkalaki Railroad are part of a strategy to capitalize on Georgia's strategic location between Europe and Asia and develop its role as a transit point for gas, oil, and other goods. The expansion of the South Caucasus pipeline, as part of the Shah Deniz II Southern Gas Corridor project, will result in a $2 billion foreign investment in Georgia, the largest ever in the country. Gas from Shah Deniz II is expected to begin flowing in 2019. Georgia's economy sustained GDP growth of more than 10% in 2006-07, based on strong inflows of foreign investment and robust government spending. However, GDP growth slowed following the August 2008 conflict with Russia, and sunk to negative 4% in 2009 as foreign direct investment and workers' remittances declined in the wake of the global financial crisis. The economy rebounded in 2010-13, but FDI inflows, the engine of Georgian economic growth prior to the 2008 conflict, have not recovered fully. Unemployment has also remained high. Georgia has historically suffered from a chronic failure to collect tax revenues; however, since 2004 the government has simplified the tax code, improved tax administration, increased tax enforcement, and cracked down on petty corruption, leading to higher revenues. The country is pinning its hopes for renewed growth on a determined effort to continue to liberalize the economy by reducing regulation, taxes, and corruption in order to attract foreign investment, with a focus on hydropower, agriculture, tourism, and textiles production. The government has received high marks from the World Bank for its anti-corruption efforts. Since 2012, the Georgian Dream-led government has continued the previous administration's low-regulation, low-tax, free market policies, while modestly increasing social spending, strengthening anti-trust policy, and amending the labor code to comply with International Labor Standards. The government published its 2020 Economic Development Strategy in early 2014 and former Prime Minister Bidzina IVANISHVILI launched the Georgian Co-Investment Fund, a $6 billion private equity fund that will invest in tourism, agriculture, logistics, energy, infrastructure, and manufacturing. In mid-2014, Georgia signed an association agreement with the European Union, paving the way to free trade and visa-free travel.

 

Source : CIA

 

 

Company name

 

CO. NAME :      Evro Investi ShPS (Correct)

                        EURO INVEST LLC (Requested)

 

 

ADDRESS

 

Street               : Agladze Street 32

 

Area                 : Didube-Chugureti District

 

Town                : Tbilisi 0119

Country             : Georgia

 

Telephone         : (995 32) 230 9868 / Mobile (995 599) 121 622 (Vakhtang Muladze)

Fax                   : (995 32) 230 9868

E-Mail               : euroinvestgeorgia@gmail.com / tenage89@yahoo.com

 

Extended Name : Evro Investi Shazguduli Pasukhismbgeblobis Sazagadoeba

 

English Translation : Euro Invest LLC

 

 

SENIOR COMPANY PERSONNEL

 

Name                                                    Position

 

Vakhtang Muladze                              Managing Director

 

Total Employees : 11

 

 

PAYMENTS

 

No trade experience of payments is available.

 

Subject is a newly established company incorporated on 1 July 2014 and commenced trading in August 2014.

 

Opinion on maximum credit :     As the company has recently commenced

                                                trading and has no financial or                                        

                                                payment track record, we recommend                            

                                                dealing on fully secured terms.

 

Trade risk assessment: High

 

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

PRINCIPAL BANKER

 

NAME               : PROCREDIT BANK JSC

 

Branch              : Al. Kazbegi Avenue 21

Town                : Tbilisi 0160

 

Telephone         : (995 32) 202 2222

Fax                   : (995 32) 220 2223

 

 

FINANCIAL INFORMATION

 

Credit Limit : 5000 Lari

 

As the subject has only recently started trading, relevant financial information is not available, however subject offered the following financial information :

 

Balance sheets as at 30 September 2015 showed (quarterly results) :

 

                                  31/12/2014 *           30/09/2015

                                               (in LARI)

 

ASSETS

 

Current Assets

Cash in vault                        3,914.9                4,416.7

Cash at bank accounts                7,522.2              (18,225.3)

Short-term receivables             133,389.1              138,488.1

Inventory                           25,563.9               70,833.1

Total Current Assets               170,390.1              195,512.5

Non-Current Assets

Fixed assets                          10,801               12,058.6

Intangible assets                      891.2                  891.2

Accumulated depreciation              (603.8)                (1,983)

Accumulated amortization               (89.1)                (193.1)

Total Non-Current Assets            10,999.3               10,773.7

TOTAL ASSETS                       181,389.3              206,286.2

 

LIABILITIES AND EQUITY

 

Current Liabilities

Short-term payables                 18,510.5              (50,917.2)

Short-term loans                     8,056.5              125,039.9

Tax liabilities                      7,100.5                  4,375

Accrued liabilities                   (100.6)               1,502.5

Total Current Liabilities             33,768               80,000.1

Long Term Liabilities

Long-term loans                       33,984                      -

Total Long Term Liabilities           33,984                      -

Equity

Own capital                          100,000                100,000

Equity in LLC                        100,000                100,000

Retained earnings                          -              (17,221.9)

Accumulated profit/loss             13,637.3                 43,508

Total Equity                         100,000               82,778.1

TOTAL LIABILITIES AND EQUITY       181,389.3              206,286.2

 

INCOME STATEMENT

 

Revenues from sales                  278,662                696,920

COGS                               194,300.6              483,241.2

Gross Profit                        84,361.5              213,678.4

Margin                                  1.41                   1.44

Operational Expenses                65,760.5              159,821.1

Non-operational revenues               800.1                1,945.1

Non-operational expenses               1,968                2,037.4

EBITDA                                17,433                 53,765

Depreciation                           692.9                1,483.2

EBIT                                16,740.1               52,281.8

Profit before tax                   16,055.3                8,773.8

Interest expense                       684.8                 43,508

Profit tax                             2,418                      -

Net profit                          13,637.3                 43,508

 

* First 6 month of operations.

                                                     

Financial year ends 31 December.

 

 

HISTORICAL PROFIT AND LOSS ACCOUNT

 

Sales Turnover              : LARI   327,482 - 2014 – exact *

                                    : LARI 1,322,699 - 2015 - projected

 

Net Profit                       : LARI    16,055 - 2014 – exact *

 

Value of Current Contracts : LARI 150,000 (as of November 2015)

 

Total Value of Stock Held : LARI 130,000 (as of November 2015)

 

Total Invested Capital : LARI 232,000 (as of November 2015)

 

* First 5 month of operations.

 

** 9 months results (January - September).

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started : 1 July 2014

 

History : Subject was established in Georgia on 1 July 2014 and started trading in August 2014.

 

ID Code : 405049807

 

Authorised Capital : LARI 200

 

Paid-Up Capital : LARI 200

 

Shazguduli Pasukhismbgeblobis Sazagadoeba (Limited Liability Company) ShPS) with the following sole shareholder :

 

Vakhtang Muladze                                               100%

(Georgian national / Personal No. : 01007002010)

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Trading as importers, wholesalers, retailers and distributors of foodstuff including fish, seafood, dairy products and meat products.

 

Subject’s main suppliers include :

 

- Mlekovita;

  Ludowa 122

  Wysokie Mazowieckie 18-200

  Woj. Podlaskie

  Poland

  NIP : 722-000-23-29

  Telephone: (48 86) 275 8200

  Fax      : (48 86) 275 8130

 

- Indykpol;

  Jesienna 3

  Olsztyn 10-370

  Poland

  Telephone: (48 89) 526 2222

 

- Koral;

  Za Dworcem Street13

  Tezew 83-110

  Poland

  Telephone: (48 58) 677 5820

  Fax      : (48 85) 677 2843

 

- Pamas;

  Szkolna Street 9

  Kolonowskie 47-110

  Poland

  Telephone: (48 77) 404 8770

  Fax      : (48 77) 404 8772

 

- Sekosa.

  Zakladowa Street 3

  Chojnice 89-620

  Poland

  Telephone: (48 52) 510 8140

  Fax      : (48 52) 396 7351

 

Subject’s main agent : Martin Charnaz, Poland.

 

NACE Codes : 4632 / 4633 / 4638

 

Imports from Poland, Italy, Greece, Spain and Germany.

 

Subject does not export, all sales are domestic.

 

Subject plans to start exporting to Kazakhstan by 2016.

 

 

FACILITIES

 

The Company has the following facilities :

 

Rented premises comprising administrative offices and warehousing facilities located at the heading address.

 

Subject plans to open a retail outlet in Tbilisi by 2016.

 

 

REGISTERED OFFICE

 

Likhauri Chikhi (Pereulok) 10

Vake-Saburtalo

Tbilisi 0171

 

 

SPECIAL NOTES

 

You enquired on : “EURO INVEST LLC”. Please note that this name applies to an English translation of the subject’s name. Subject’s correct registered name is as per heading.

 

The address which you provided : “LIKHAURI 10, GRUZJA” is misspelt and applies to subject's registered office address. Please note that subject's operational office address is as per heading.

 

The postal code given by you : “0108 TBILISI” is incorrect. Please note that subject’s correct postal code is as per heading.

 

Interviewed : Vakhtang Muladze (Managing Director).

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.35

UK Pound

1

Rs.100.28

Euro

1

Rs.71.30

 

INFORMATION DETAILS

 

Analysis Done by :

KIN

 

 

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%)

 

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.