MIRA INFORM REPORT

 

 

Report No. :

349151

Report Date :

19.11.2015

 

IDENTIFICATION DETAILS

 

Name :

IMEQS GROWP LLC

 

 

Registered Office :

Tbilisyan Highway 25, Yerevan 0052, Armenia

 

 

Country :

Armenia

 

 

Financials (as on) :

2014

 

 

Date of Incorporation :

17.03.1997

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

·         Manufacturers of adhesives for ceramic tiles and furniture.

·         Trading as importers, wholesalers, retailers and distributors of ceramic tiles, sanitary ware, bathroom fittings, adhesives, hydro-baths, shower enclosures and furniture as well as heating equipment.

 

 

No. of Employee :

960

 

 

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

 

Maximum Credit Limit :

DRAM 400,000,000

 

 

Status :

Satisfactory

 

 

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)

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 name

 

IMEQS GROWP LLC (Correct)

         

IMEX GROUP CO. LTD (Requested)

 

 

ADDRESS

 

Street               : Tbilisyan Highway 25

Town                : Yerevan 0052

Country             : Armenia

 

Telephone         : (374 10) 282 609 / 287 482 / 287 234 / 287 483 / 281 574 (Accounts)

Fax                   : (374 10) 282 081

E-Mail               : imex@arminco.com / office@imexgroup.am / siranush@imexgroup.am / armen@imexgroup.am

Website            : www.idealsystem.am

 

Trading Style     : Ideal System

 

Also Known As             : Imex Group LLC / Imex Group Co. Ltd

 

Formerly Known

As                    : Imex-M Co Ltd

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                                Position

 

1. Norayr Khachatryan               President

 

2. Rafael Manucharyan             Managing Director   

 

3. Armen Hovhannisian             Deputy Managing Director

 

4. Sargis Avetisyan                   Deputy Managing Director of Marketing & Sales Department

 

5. Samvel Yeghikyan                 Chief Accountant

 

6. Siranush Apreyan                  Deputy Chief Accountant

 

7. Tigran Pogosyan                   Warehouse Manager

 

8. Lianna Petrosyan                   Showroom Manager

 

Total Employees                       : 960

 

 

PAYMENTS

 

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

 

Subject is a well-established company operating since 1997.

 

We consider it is acceptable to deal with subject for LARGE amounts, although it is normal accepted practice for international suppliers to deal on secured terms with Armenian importers.

 

Opinion on maximum credit       : DRAM 400,000,000

 

Trade risk assessment               : Normal

 

 

PRINCIPAL BANKERS

 

NAME               : HSBC BANK CJSC

Branch              : Teryan Street 66

Town                : Yerevann 0009

 

Telephone         : (374 60) 655 000

Fax                   : (374 60) 655 501

Acc. No.           : 001-023977-101

 

Subject also has an account with the following banks:

 

1. ACBA-Credit Agricole Bank CJSC

   Byron Street 1

   Yerevan 0009

   Telephone      : (374 10) 318 888

   Fax                : (374 10) 543 485

 

2. Inekobank CJSC

   Tumanyan Street 17

   Yerevan 0001

   Telephone      : (374 10) 565 974 / 589 119

   Fax                : (374 10) 563 725 

 

 

FINANCIAL INFORMATION

 

Private companies in Armenia are not required to publish or disclose balance sheets. However, the subject interviewed offered the following information :

 

Sales Turnover               : US DLRS   4,000,000 - 1998 - exact

                                    : US DLRS   5,000,000 - 1999 - exact

                                    : US DLRS   6,000,000 - 2000 - exact

                                    : DRAM  1,402,296,000 - 2001 – exact *

                                    : US DLRS   5,000,000 - 2002 - approx

                                    : DRAM  4,412,601,000 - 2003 - exact

                                    : DRAM  3,126,676,000 - 2004 - exact

                                    : DRAM  3,500,000,000 - 2005 - approx

                                    : DRAM  3,902,387,000 - 2006 - exact

                                    : DRAM  8,366,427,000 - 2007 - exact

                                    : DRAM  8,500,000,000 - 2008 - approx

                                    : DRAM  8,000,000,000 - 2009 – approx                                                  

                                    : not given – 2010/2013 

                                    : DRAM 20,000,000,000 - 2014 – approx

Net Profit                     : US DLRS     450,000 - 1998 - exact

                                    : US DLRS     500,000 - 1999 - exact

                                    : US DLRS     600,000 - 2000 - exact

                                    : DRAM     30,863,000 - 2001 – exact *

                                    : US DLRS     100,000 - 2002 - approx

                                    : DRAM    334,477,000 - 2003 - exact

                                    : DRAM    306,193,000 - 2004 - exact

                                     : not given - 2005

                                     : DRAM    117,328,000 - 2006 - exact

                                     : DRAM  1,353,648,000 - 2007 - exact

 

* Decrease in sales turnover and profit attributed to unfavourable

  market conditions.

 

 

Financials

 

Financial year ends 31 December.

 

Balance Sheets as at 31 December 2004 showed (latest available) :

 

                                                                        31/12/2003                        31/12/2004

                                                                                                  (in thousands of DRAM)

ASSETS

 

Fixed assets                         321,472               450,082

Intangible assets                        294                   996

Other non-current assets                   -                25,050

Total non-current assets             321,766               486,128

Materials                              1,410                     -

Short time items                       4,543                12,873

Goods                              1,403,206             1,362,883

Payments made                         14,316               795,597

Receivables on sales                     143                     -

Current receivables on        

settlements with the budget          214,084               128,403

Other receivables                          -                 2,027

Money capital and their       

equivalents                            6,009                18,054

Other current assets,         

among them                               445                     -

Current receivables on Social 

Security payments                        445                     -

Total Current Assets               1,644,156             2,319,837

TOTAL ASSETS                       1,965,922             2,805,965

 

LIABILITIES & EQUITY

 

Net amount of the Charter     

(share collecting) Capital             1,000                 1,000

Accumulated profit                   320,672               276,755

Reserve capital                            -                   150

Total own capital                    321,672               277,905

Long-term bank credits                     -               593,314

Total non-current liabilities              -               593,314

Short-term bank credits              170,202               190,913

Creditor debts by purchases          216,947                 5,546

Current prepayments received          25,968                33,606

Payables for settlements      

with the budget                        1,530                   424

Receivables on social security             -                 3,410

Liabilities to personnel on   

labour payments                        8,633                13,898

Short-term debts        

to the participants (founders)     1,218,390             1,686,488

Other creditor debts                   2,580                     -

Other current liabilities                  -                   461

Total current obligations          1,644,250             1,934,746

Total Liability and equity         1,965,922             2,805,965

 

INCOME STATEMENT

 

Revenue from sales of products

goods, works & services            4,412,601             3,126,676

Cost of products                  (3,766,196)       (2,456,825,000)

Gross profit                         646,405               669,851

Sales expenses                      (115,198)             (134,053)

Administrative expenses             (190,322)             (287,398)

Profit from realization              340,885               248,400

Other operating income                27,857                92,300

Other operating expenses             (16,642)              (18,701)

Operating profit                     352,100               321,999

Financial expenditures               (14,202)              (64,919)

Other non-operating profit            (3,421)              (49,113)

Common activity profit               334,477               306,193

Net profit before profit      

tax expenditure reduction            334,477               306,193

Profit tax expenditure

(compensation)                        55,876                29,438

Net profit after profit tax   

expenditure reduction                278,601               276,755

 

The following financial information applies to subject’s affiliated company, Zet Ynd Ey LLC :

 

Sales Turnover                          : DRAM   488,335,000 - 2010 - exact

                                                : DRAM 1,425,380,000 - 2011 - exact

                                                : DRAM 2,435,668,000 - 2012 – exact

                                                : DRAM 2,933,352,000 – 2013 – exact

                                                : DRAM 4,143,537,800 – 2014 – exact

                                                : DRAM 5,000,000,000 – 2015 - projected        

 

Net Profit                                  : DRAM    18,111,000 - 2010 - exact

                                                : DRAM   153,612,000 - 2011 - exact

                                                : DRAM  (125,903,000)- 2012 – exact

                                                : DRAM   195,626,000 – 2013 – exact

 

Financial year ends 31 December.

 

The following financial information applies to subject’s affiliated company, Lider Sistem ShPS :

 

 

Sales Turnover                          : EURO   194,657 - 2012 – exact *

                                                : LARI 3,798,687 - 2013 – exact

                                                : LARI 4,886,464 – 2014 – exact  

 

Net Profit                                  : not given      - 2012 *

(Loss)                                       : LARI  (317,679)- 2013 – exact

                                                : LARI  (407,000)- 2014 – exact 

 

* First year of operations (January-December).

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started     : 17 March 1997

 

History : Subject was established in Armenia on 17 March 1997 as a Limited Liability Company under the name of “Imex-M co Ltd” and with with the following shareholding structure :

 

- Rafael Manucharyan      50%

- Gagik Shakhparian       50%

 

On 25 January 2001, subject was re-registered and changed its name to present style.

 

On 12 April 2002, Gagik Shakhparian sold its stake to Samvel Yeghikyan and later Rafael Manucharyan sold its stake to Hrant Khachatryan. In 2007, subject’s shareholding structure changed to the present.

 

C.R. No.                       : 282.110.03978

 

Tax No.                         : 00847479

 

Authorised Capital         : DRAM 1,000,000

 

Paid-up Capital             : DRAM 1,000,000

 

Limited Liability Company with the following shareholders :

 

                                                                                 Percentage

 

1. Noraik Khachatryan                                             50%

 

2. Rafael Manucharyan                                             48%

 

3. Hukas Khachatryan                                               2%

 

Affiliated companies of Imeqs Growp LLC :

 

Subsidiary

 

Litokol AM CO LLC

Tbilisyan Highway 25/7

Yerevan 0052

Telephone         : (374 10) 207 197 / (374 99) 017 706

Fax                   : (374 10) 287 184

Managing

Director            : Ara Khachatryan

Est.                  : 24 September 2007

C.R. No.           : 282.110.05925

Tax No.             : 00651425

(Manufacture of powder adhesives and putties)

Associates

 

1. Ceramica LLC

   Charentsi Street 7

   Yerevan 0025 

   Telephone      : (374 10) 586 358 / 557 434 

   Fax                : (374 10) 282 081

   Est.               : 27 August 1997

   C.R. No.        : 273.110.02036

   Tax No.          : 01523925

   (retail chain)

 

2. Isola LLC

   Yerevan

   Est.               : 11 May 2012

   C.R. No.        : 282.110.98326

   Tax No.          : 00877141

   Sole Shareholder :  Ghukas N. Khachatryan   

 

3. Maranik Co Ltd 

   4th Street 19

   Avan Distric

   Yerevan

   Telephone      : (374 10) 616 300 / 282 069

   Fax                : (374 10) 282 081

   Est.               : 21 July 2003

   C.R. No.        : 282.110.04753

   Tax No.          : 00855055

   Sole Shareholder : Norayr Khachatryan

 

4. Zet Ynd Ey LLC (aka Z & A LLC)

   Hyusisayin Avenue 5 (aka Northern Avenue)

   Kentron District

   Yerevan 0001

   Telephone      : (374 10) 281 574 (Siranush Apreyan) / 238 176 / Mobiles  

                        (374 55) 010 711 (Ghukas N. Khachatryan) / (374 55) 506 223

   (Siranush Apreyan)                

   Fax                 : (374 10) 281 574

   Est.               : 29 July 2005

   C.R. No.        : 282.110.05297

   Tax No.          : 00859794

   Capital           : DRAM 50,000

   Sole Shareholder : Ghukas N. Khachatryan                              

 

As a matter of interest Ghukas N. Khachatryan’s son has interest in the following company :

 

Lider Sistem ShPS

Didube-Chughuretis District, Between the right Bank of

Kura, Between the Streets Khosharauli and Eliava

Tbilisi

Georgia

Telephone         : (995 32) 219 2005 / 297 0113 / Mobile (995 555) 498 086

(Irakli Mluava) / (995 591) 555 455 (David Mchedlidze)        

Fax                   : (995 32) 219 2005        

E-Mail               : david.mchedlidze@leadersystem.ge  

Chief Executive Officer : David Mchedlidze

Est.                  : 26 October 2011  

C.R. No.           : B11154264  

ID Code            : 401963899

Capital              : LARI 10,000

Sole shareholder : Haik Khachatryan

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Manufacturers of adhesives for ceramic tiles and furniture.

Trading as importers, wholesalers, retailers and distributors of ceramic tiles, sanitary ware, bathroom fittings, adhesives, hydro-baths, shower enclosures and furniture as well as heating equipment.

 

Subject also provides interior and exterior repair-construction services.

 

Subject’s main suppliers include ;

 

- Ceramica Dolomite;

- Azulejera Alcorense;

- Alfa Ceramiche;

- Cooperativa Ceramica d'Imola;

- Ottone Meloda SpA;

- Pamesa Ceramica Samo SpA;

- Venus Ceramica SA;

- Baxi SpA;

- Ceramicas Bellavista;

- CBI Europe;

- Dado Ceramica;

- Duravit AG;

- Franke SpA;

- Ece Seramik;

- Hangsgrohe;

- Jacob Delafon;

- Litokol SRL;

- Nupi SpA;

- Schulz;

- Teka Industrials SA;

- Zhogshan City Xiangji Electrical Co Ltd;

- Ceramicas Myr.

 

NACE Codes: 2052 / 2331 / 4613 / 4673

 

Imports from Italy, Spain, Germany, Turkey, China, Bulgaria and Czech Republic.

 

Exports to Georgia and Russia.

 

 

FACILITIES

 

The Company has the following facilities :

 

Owned premises comprising administrative offices located at the heading address.

 

Subject and its associate Ceramica LLC operate 24 retail outlets styled “Ideal System” in Yerevan, Gyumri, Artashat, Vanadzor, Armavir, Echmiadzin and Martuni (see “Branch Offices” section).

 

Subject also has 6 owned trucks used for selling goods.

 

Until 2005, subject operated from :

 

4th Street 19

Avan District

 

Until 2005, subject used the following postal code number :

 

Yerevan 375063

Until 2005, subject used the following telephone and fax numbers :

 

Telephone         : (374 10) 616 300

Fax                   : (374 10) 626 537

 

 

REGISTERED OFFICE

 

Tbilisyan Highway 25

Yerevan 0052

 

Until 2007, subject’s registered address was located at :

 

4th Street 19

Avan District

Yerevan 375063

BRANCH OFFICES

 

1. Vardanants Street 122

   Vanadzor

   Telephone: (374 322) 41115

 

2. Shirakatsi Street 181/3 

   Gyumri

   Telephone: (374 91) 014 303

 

3. Yerevan Street 16

   Armavir

   Telephone: (374 91) 014 305

 

4. Atarbekyuan Street 16

   Etchmiadzin

   Telephone: (374 231) 66500

 

5. Trade House

   Yerevan Street

   Martuni

   Telephone: (374 262) 47122

 

6. Gay Street 30

   Artashat

   Telephone: (374 235) 26075

 

7. Tigran Petrosyan Street 24/3 

   Yerevan

   Telephone: (374 10) 367 873

 

8. Shiraz Street 15

   Yerevan

   Telephone: (374 10) 344 521

 

9. Bashinjaghyan Street 172/1 

   Yerevan

   Telephone: (374 10) 343 710

 

10.Kasyan Street 4

   Yerevan

   Telephone: (374) 271 914

 

11.Komitas Avenue 56

   Yerevan

   Telephone: (374 10) 237 925

 

12.D. Anhakht Street 8

   Yerevan

   Telephone: (374 10) 297 249

 

13.Acharyan Street 2/1

   Yerevan

   Telephone: (374 10) 611 617

 

14.Safaryan Street 3/3

   Yerevan

   Telephone: (374 10) 648 361

 

15.Sebastia Street 22

   Yerevan

   Telephone: (374 10) 747 259

 

16.Nar-Dos Street 60

   Yerevan

   Telephone: (374 10) 551 363 / 552 363 / 550 996

 

17.B. Muradyan Street 6/1

   Yerevan

   Telephone: (374 99) 011 120

 

18.Raffi Street 55

   Yerevan

   Telephone: (374 10) 739 332

 

19.Bagratunyats Street 10

   Yerevan

   Telephone: (374 10) 423 741

 

20.Arshakunyats Street 47

   Yerevan

   Telephone: (374 10) 441 821

 

21.Rostovyan-Artsakh Street, Crossroad

   Yerevan

   Telephone: (374 10) 431 914

 

22.Arshakunyats Street 210/1

   Yerevan

   Telephone: (374 91) 014 321

 

 

SPECIAL NOTES

 

You enquired on : “IMEX GROUP CO. LTD”. Please note that subject’s also known by this name. Subject’s correct name is as per heading. 

 

The address given by you : “Tbilisian Highway 25, Erewan” is misspelt. Please note that subject’s correct administrative office address is as per heading.

 

Interviewed : Siranush Apreyan (Deputy Chief Accountant).

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.66.11

UK Pound

1

Rs.100.51

Euro

1

Rs.70.39

 

INFORMATION DETAILS

 

Analysis Done by :

KIN

 

 

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.