MIRA INFORM REPORT

 

 

Report No. :

340643

Report Date :

05.10.2015

 

IDENTIFICATION DETAILS

 

Name :

B.M. HAUS SHPS

 

 

Registered Office :

Tskneti Highway 54, Building No. 12, Office No. 1, Vake-Saburtalo District, Tbilisi 0177

 

 

Country :

Georgia

 

 

Date of Incorporation :

10.02.2015

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Trading as importers and retailers of building materials including laminated floorings, parquet, decking boards, floor sanding, varnish, glue, floor recovering, care products and accessories.

 

 

No. of Employees :

6 (Subject)

27 (Group)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

NB

 

RATING

STATUS

PROPOSED CREDIT LINE

 

--

NB

New Business

 

--

 

 

Status :

New Business

 

 

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)

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

 

NOTE

 

In absence of financials, no credit limit could be recommended.

 

 

Company NAME

 

B.M. HAUS SHPS (Correct)

BM HOUSE LLC (Requested)

 

 

ADDRESS

 

Street   : Tskneti Highway 54, Building No. 12, Office No. 1

 

Area     : Bagebi village

 

Town     : Tbilisi 0162

Country  : Georgia

 

Telephone: (995 32) 223 8686 / 272 6797 / Mobiles (995 597) 799 787 (Kakhaber Khukkunaishvili)/ (995 571) 420 079 / (995 790) 799 799

Fax      : (995 32) 223 8686

E-Mail   : parkett.ge@gmail.com / eradzeirma@gmail.com 

 

Extended Name : B.M. Haus Shazguduli Pasukhismbgeblobis Sazagadoeba

 

English Translation : B.M. House Ltd

 

Also Known As : ShPS B.M. Haus

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                                Position

 

1. Irma Iradze                                        Managing Director

 

2. Kakhaber Khukkunaishvili                   Executive Director

  

Total Employees :                                 6 (subject)

                                                            27 (group)

 


PAYMENTS

 

No trade experience of payments is available.

 

Subject is a newly established company incorporated on 10 February 2015.

 

Opinion on maximum credit : As the company has recently been established 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 BANKERS

 

NAME               : TBC-BANK (TBILISI BUSINESS CENTRE BANK) JSC

 

Branch              : Marzhanishvili Street 7

Town                : Tbilisi 0114

 

Telephone         : (995 32) 227 2727

Fax                   : (995 32) 227 2727

 

Subject also has an account with:

 

VTB Bank (Georgia) JSC

G. Chanturia Street 14 

Tbilisi 0114

Telephone         : (995 32) 224 2424 / 250 5505 

Fax                   : (995 32) 293 3291

 

 

FINANCIAL INFORMATION

 

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

 

Sales turnover                           : LARI   600,000 – 2015 – exact *

                                                : EURO   240,000 – 2015 - projected

 

Net profit                                  : LARI    80,000 – 2015 – exact *

 

Value of Current Contracts         : EURO 250,000 (as of September 2015)

 

Total Value of Stock Held          : EURO 200,000 (as of September 2015)

 

Total Invested Capital                : EURO 500,000 (as of September 2015)

 

* First 8 months of operations (February - September).

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started : 10 February 2015

 

History : Subject was established in Georgia on 10 February 2015.

 

ID Code : 405083886

Authorised Capital : LARI 400

 

Paid-Up Capital : LARI 400

 

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

 

Irma Iradze  100% (Georgian national / Personal No.: 01021014624)   

 

As a matter of interest Mrs Irma Iradze’s husband Kakhaber Khukkunaishvili has interest in the following company:

 

B.M. Group ShPS

Tbilisi

Est. : 13 June 2008

ID Code : 205256685   

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Trading as importers and retailers of building materials including laminated floorings, parquet, decking boards, floor sanding, varnish, glue, floor recovering, care products and accessories.

 

Subject also provides maintenance and repair services.

 

Subject’s main suppliers:

 

- Egger (Germany);

- Panaget (France);

- Pedross (Italy).

 

Subject is a distributor for :

 

- Coswick;

- EGGER;

- Krono Swiss;

- Baltic Wood;

- Kaindl;

- Berry Floor;

- Panaget;

- OSMO;

- Granorte;

- Parador;

- Decora;

- TIS;

- Sentai WPC;

- Wezalit;

- Carver;

- Pedross;

- BOEN;

- Magnum.

 

NACE Codes : 4613 / 4752

Imports from China, Portugal, Ukraine, Germany, Switzerland, Italy, Sweden, Belarus, Turkey, France, Poland and Austria.

 

Exports occasionally to Armenia and Ukraine.

 

 

FACILITIES

 

The Company has the following facilities :

 

Owned premises comprising administrative offices and storage facilities located at the heading address. 

 

 

REGISTERED OFFICE

 

Tskneti Highway 54, Building No. 12, Office No. 1

Vake-Saburtalo District

Tbilisi 0177

 

 

SPECIAL NOTES

 

This amended report is sent as a replacement of our previous report Ref: 758206.01.C.TYN.X / dated 21/09/2015.

 

You enquired on: “BM HOUSE LLC” is incorrect. Subject’s correct registered name is as per heading.

 

The address which you provided: “Ul Tskneti Highway 54, 0162 Tbilisi Gruzia” is misspelt. Please note that subject's administrative office address is as per heading.

 

Interviewed : Kakhaber Khukhunaishvili (Executive Director).

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.55

UK Pound

1

Rs.99.17

Euro

1

Rs.73.08

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

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.