MIRA INFORM REPORT

 

 

Report No. :

351187

Report Date :

27.11.2015

 

IDENTIFICATION DETAILS

 

Name :

UNITOOLS LLC

 

 

Registered Office :

Parpetsi Street 22-14, Yerevan 0002

 

 

Country :

Armenia

 

 

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 :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

 

Maximum Credit Limits :

DRAM 2,000,000

 

 

Status :

Small Company

 

 

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

 

UNITOOLS LLC (CORRECT)

UNITOOL LLC (Requested)

 

 

ADDRESS

 

Street   : Davit Anhaghti 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

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

 

Hovhannes Sergeevich Mkrtumyan                     Managing Director

 

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

 

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

 

Sales Turnover                          : EURO 200,000 - 2014 - exact

                                                : EURO 280,000 - 2015 – exact *

                                                : EURO 300,000 - 2015 - projected

 

Net Profit                      : EURO   8,000 - 2014 - exact

 

* 10 months results (January - October).

 

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 100,000

 

Paid-Up Capital : DRAM 100,000

 

Limited Liability Company with the following shareholders :

 

                                                             Percentage

 

1. Armen Davtyan                                   25%

  (Russian national)

 

2. Ruben Astvachatryan                          25%

  (Russian national)

 

3. Ara Sakhakyan                                   25%

  (Armenian national)

 

4. Levon Sagkhatelyan                           25%

  (Armenian national)

 

 

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).

 

NACE Codes : 4776 / 4799

 

Imports from Europe, Italy and France.

 

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 as well as storage facilities located at Komitas Street 59, Yerevan.

 

Subject plans to open one retail outlet by February 2016.

 

 

REGISTERED OFFICE

 

Parpetsi Street 22-14

Yerevan 0002

 

 

SPECIAL NOTES

 

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.66.55

UK Pound

1

Rs.100.64

Euro

1

Rs.70.70

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 :

NIT

 

               


 

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.