MIRA INFORM REPORT

 

 

Report No. :

350832

Report Date :

26.11.2015

           

IDENTIFICATION DETAILS

 

Name :

AROVA LLC

 

 

Registered Office :

Griboyedovi Street 60 Arabkir District Yerevan 0051

 

 

Country :

Armenia

 

 

Date of Incorporation :

14.03.2002

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Trading as importers, wholesalers and distributors of household goods and foodstuffs, such as tea and canned vegetables.

 

 

No. of Employee :

10

 

 

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 :

Dram 5,000,000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Unknown

 

 

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

 

Arova LLC (Correct)

AROVA LTD (Requested)

 

 

ADDRESS

 

Street                           : Griboyedovi Street 60

 

Area                             : Arabkir District

 

Town                : Yerevan 0051 

Country             : Armenia

 

Telephone         : (374 10) 230 794

Fax                   : (374 10) 230 794

E-Mail               : sayae@arova.am

 

English Translation : Arova LLC

 

Also Known As : Arova OOO

 

 

SENIOR COMPANY PERSONNEL

 

Name                              Position

 

Armen A. Khakobyan      Managing Director

 

Total Employees           : 10

 

 

PAYMENTS

 

Unknown

 

We consider it is acceptable to deal with subject for SMALL amounts, however in view of the lack of financial information we recommend international suppliers exercise a degree of caution.

 

Opinion on maximum credit : DRAM 5,000,000 (higher amounts may be considered with full fiscal disclosure)  

 

Trade risk assessment: Normal

 

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

 

 

PRINCIPAL BANKERS

 

NAME               : AMERIABANK CJSC

 

Branch              : Grigor Lusavorich Street 9

Town                : Yerevan 0015

 

Telephone         : (374 10) 561 111

Fax                   : (374 10) 513 133

 

Subject also has an account with :

 

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. 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     : 14 March 2002

 

History              : Subject was established in Armenia on 14 March 2002.

 

C.R. No.           : 264.110.05700

 

Tax No.             : 09414793

 

Capital              : not given

 

Limited Liability Company with the following sole shareholder :

 

Artur Marturasyan                          100%

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Trading as importers, wholesalers and distributors of household goods and foodstuffs, such as tea and canned vegetables.

 

Distributors for:

 

- Kolorado (Poland);

- Maki (Poland);

- Mikado (Germany);

- Riston (UK).

 

NACE Codes: 4638 / 4637

 

Imports from Europe, UK, Germany and Poland.

 

Subject does not export, all sales are domestic.

 

 

FACILITIES

 

The Company has the following facilities :

 

Premises comprising administrative offices, a retail outlet and storage facilities located at the heading address.

 

 

REGISTERED OFFICE

 

Griboyedovi Street 60

Arabkir District

Yerevan 0051

 

 

SPECIAL NOTES

 

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

 

The commercial registration number given by you : “03A053858” is incorrect. Please note that subject’s correct commercial registration number is 264.110.05700.

 

Interviewed : Armen A. Khakobyan (Managing Director).

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.38

UK Pound

1

Rs.100.45

Euro

1

Rs.70.55

 

INFORMATION DETAILS

 

Analysis Done by :

HEE

 

 

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.