MIRA INFORM REPORT

 

 

Report No. :

344117

Report Date :

08.10.2015

 

IDENTIFICATION DETAILS

 

Name :

EL-VE-EM MMC

 

 

Registered Office :

Beshir Bunyadov Street 1 Sabunchu District, Bakikhanov Qesebesi (Settlement) Baku AZ1040

 

 

Country :

Azerbaijan

 

 

Date of Incorporation :

26.04.2006

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Trading as importers, wholesalers, retailers and distributors of car paints, auto-chemicals, abrasive materials, industrial lubricants and automotive lubricants.

 

 

No. of Employee :

75

 

 

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 :

New Manat 85,000

 

 

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)

Azerbaijan

B2

B2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

AZERBAIJAN ECONOMIC OVERVIEW

 

Azerbaijan's high economic growth has been attributable to large and growing oil and gas exports, but some non-export sectors also featured double-digit growth, including construction, banking, and real estate. Oil exports through the Baku-Tbilisi-Ceyhan Pipeline, the Baku-Novorossiysk, and the Baku-Supsa pipelines remain the main economic driver, but efforts to boost Azerbaijan's gas production are underway. The eventual completion of the geopolitically important Southern Gas Corridor between Azerbaijan and Europe will open up another, albeit, smaller source of revenue from gas exports. Azerbaijan has made only limited progress on instituting market-based economic reforms. Pervasive public and private sector corruption and structural economic inefficiencies remain a drag on long-term growth, particularly in non-energy sectors. Several other obstacles impede Azerbaijan's economic progress, including the need for stepped up foreign investment in the non-energy sector and the continuing conflict with Armenia over the Nagorno-Karabakh region.TRADE with Russia and the other former Soviet republics is declining in importance, while trade is building with Turkey and the nations of Europe. Long-term prospects depend on world oil prices, Azerbaijan's ability to negotiate export routes for its growing gas production, and its ability to use its energy wealth to promote growth and spur employment in non-energy sectors of the economy.

 

Source : CIA

 

 

Company name

 

EL-VE-EM MMC (Correct)

 

 

ADDRESS

 

Street                : Beshir Bunyadov Street 1

 

Area                  : Sabunchu District, Bakikhanov Qesebesi (Settlement)

 

Town                : Baku AZ1040

Country             : Azerbaijan

 

Telephone         : (994 12) 425 5600 / 425 6280 / Mobile (994 50) 222 1615 (Zia Abdullayev) / (994 50) 204 1462 (Ali Mammadali Oglu Alizade) / (994 50)     357 7037 (Geray Kyazimov) / (994 50) 358 4101 (Shakir Mamedov)

                

Fax                    : (994 12) 425 4500

E-Mail               : office@elveem.az  

Website            : www.elveem.az 

 

 

Extended Name            : EL-VE-EM Mehdud Mesuliyyetli Cemiyyeti

 

English Translation        : EL-VE-EM Ltd

 

Also Known As                         : EL-VE-EM Ltd Mehdud Mesuliyyetli Cemiyyeti / EL VE EM MMC

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                                            Position

 

1. Elchin Akif Oglu Maharramov                         Managing Director

 

2. Ali Mammadali Oglu Alizade                           Deputy Managing Director

 

3. Shalala Gulieva                                              Chief Accountant

 

4. Zia Gadzhiaga Oglu Abdullayev                      Procurement / Logistics Manager

 

5. Geray Kyazimov                                                        Service Center Manager

 

6. Shakir Mamedov                                            Showroom Director (Ganja)

 

Total Employees           : 75

 

 

PAYMENTS

 

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

 

Subject is a well-established company with origins tracing back to 1993.

 

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

 

Opinion on maximum credit       : NEW MANAT 85,000

 

Trade risk assessment               : Normal

 

 

PRINCIPAL BANKERS

 

NAME                           : BANK RESPUBLIKA OJSC

 

Branch                          : Khagani Street 21

Town                            : Baku AZ1000

 

Telephone                     : (994 12) 598 0800

Fax                               : (994 12) 598 0880

 

Subject also has an account with the following banks :

 

1. Pasha Bank OJSC

   Yusif Mammadaliyev Street 15

   Baku AZ1005

   Telephone      : (994 12) 496 5000

   Fax                : (994 12) 496 5010    

 

2. International Bank of Azerbaijan

   Sabunchu Branch, Babek Avenue, Block 2360

   Baku AZ1030

   Telephone      : (994 12) 447 5450

   Fax                : (994 12) 447 5470

 

 


FINANCIAL INFORMATION

 

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

 

Sales Turnover                          : NEW MANAT  4,154,164 – 2014 – exact

                                                            : NEW MANAT  6,645,000 – 2015 – projected 

           

Net Profit                                  : NEW MANAT    828,363 – 2014 – exact

 

Value of Current Contracts         : US DLRS 6,300,000 (as of May 2015)

 

Total Value of Stock Held          : NEW MANAT 826,000 (as of May 2015)

 

Total Invested Capital                : NEW MANAT 240,000 (as of May 2015)

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started                 : 26 April 2006

 

History                          : Subject was established on 26 April 2006, however its origins can be traced back to 1993. Initially, subject’s sole shareholder was Akif Maharramov.

 

On 24 March 2009, Akif Maharramov passed away and shareholding structure changed to the following :

 

- Emil Akif Oglu Maharramov                               33.33%

- Qanira Arrakhman Qizi Maharramova                 33.33%

- Vafa Akif Qizi Maharramova                              33.33%

 

In June 2015, subject's shareholding structure changed to the present.

 

C.R. No.                       : 0106-P213-45692 (issued on 26 April 2006)

 

Tax No.                         : VOEN 1800112801

 

Authorised Capital         : NEW MANAT 200

 

Paid-Up Capital             : NEW MANAT 200

 

Mekhdud Mesuliatli Camiyeti (Limited Liability Company) with the following director and sole shareholder :

 

Director

 

Elchin Akif Oglu Maharramov

(son of Qanira Arrakhman Qizi Maharramova)    

 

Shareholder                                     

 

Qanira Arrakhman Qizi Maharramova                   100%

 

Affiliated companies of EL-VE-EM MMC :

 

Associates

 

1. El-Ve-Em Ltd MMC

   Massive 2 (Badamdar Qesebesi) Building 231

   Badamdar STQ

   Sabail District

   Baku AZ1021

   Managing Director : Elchin Akif Oglu Maharramov    

   Est. : 11 March 1996

   Tax No. : VOEN 1800112931

   Capital : NEW MANAT 300

   Shareholders :

      - Emil Akif Oglu Maharramov                        33.33%                

      - Qanira Arrakhman Qizi Maharramova          33.33%             

      - Vafa Akif Qizi Maharramova                       33.33%

 

2. ElVeEm-Senaye MMC

   Beshir Bunyadov Street 1

   Sabunchu District, Bakikhanov Qesebesi (Settlement)

   Baku AZ1040

   Managing Director : Tagi Aga Oglu Zeynalov

   Est. : 18 January 2006

   Tax No. : VOEN 1800354481

   Capital : NEW MANAT 200

   (Owned 0,8 hectares plot of land)

 

3. ElVeEm-Servis MMC

   Beshir Bunyadov Street 1

   Sabunchu District, Bakikhanov Qesebesi (Settlement)

   Baku AZ1040

   Managing Director : Emil Akif Oglu Maharramov

   Est. : 22 April 2005

   Tax No. : VOEN 1800261511

   Capital : NEW MANAT 3,200,020

   (Owned 1,4 hectares plot of land and 2 stories building

   (1,720 sq. m.))

   (Inactive)

 

Former associates:

 

1. Abu Treydinq Ltd MMC

   B. Bunyadov Street 1

   Sabunchu District, Bakikhanov Qesebesi (Settlement)

   Baku AZ1040

   Telephone: (994 12) 425 5600 / 441 1188 / 425 6280 / Mobile (994

   50) 204 1462

   Fax      : (994 12) 425 4500

   E-Mail   : elveem@azeronline.com

   Est.     : 1 September 2004

   Tax No.  : VOEN 1300174961

   Capital  : NEW MANAT 100

   Shareholders :

      - Elchin Akif Oglu Maharramov                     95%

        (son of Akif Oglu Maharramov)

      - Yashar Babayev                                        5%

   (registered address : Mirzaga Aliyev Street 138, Yasamal District,

   Baku AZ10006)

  (ceased trading in 2010)

 

2. Elsan-T MMC

   Beshir Bunyadov Street 1

   Sabunchu District, Bakikhanov Qesebesi (Settlement)

   Baku AZ1040

   Managing Director : Ali Mammadali Oglu Alizade

   Est. : 26 April 2006

   Tax No. : VOEN 1800112801

   Capital : NEW MANAT 200

   (merged with El-Ve-Em MMC)

           

3. Noval AZ JV Ltd

   Sumgayit

   Shareholders:

      - Emil Akif Oglu Maharramov                        50%

      - Noval (Poland)                                                      50%

   (manufacturing unit (1,800 sq. m.) and storage facilities (800 sq.

   m.)

   (ceased trading in 2013)

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Trading as importers, wholesalers, retailers and distributors of car paints, auto-chemicals, abrasive materials, industrial lubricants and automotive lubricants.

 

Subject also provides car repair services.

 

Distributors for :

 

-  Glasurit (Germany);

- BASF (Germany);

- Statoil (Sweden);

- LOTOS (Poland);

- Divinol (Germany);

- Novol (Poland);

- Luxe (Russia-USA);

- Delfin Ditribution (Russia-USA);

- Vershina (Russia);

- DYO (Turkey);

- SIA (Switzerland);

- ARKO (Iran);

- TEXACO.

 

Subject’s principal suppliers include :

 

- Lotos Oil SA;

- Novol Sp Zoo;

- DYO Boya Fabrikalari San. Ve Tic AS;

- Basf Turk Kimya San Ve Tic Ltd;

- Vibac Spa Strada Ticineto;

- Chevron Belgium NV;

- Zeller + Gmelin GmbH;

- Dolphin Distribution OOO.

 

NACE Codes: 4532 / 4540

 

Imports from Turkey, Poland, Germany, Italy, Belgium, Norway and Russia.

 

Subject does not export, all sales are domestic.

 

 

FACILITIES

 

The Company has the following facilities :

 

Owned premises comprising administrative offices (320 sq. m.) and storage facilities (1,360 sq. m.) located at the heading address as well as additional rented storage facilities (800 sq. m.) located elsewhere in Sumgayit.

 

Subject has a service centre styled “Avtoklinik” (2,100 sq. m.) located in Babek avenue, Baku and two showrooms in Ganja and Quba.

 

 

REGISTERED OFFICE

 

Beshir Bunyadov Street (Bakikhanov Qesebesi) 1

Bakikhanov STQ

Sabunchu District

Baku AZ1040

 

Until October 2014, subject’s registered address was located at :

 

Massive 2 (Badamdar Qesebesi) Building 231

Badamdar STQ

Sabail District

Baku AZ1021

 

 

SPECIAL NOTES

 

You enquired on : “EL VE EM MMC”. Please note that subject’s also known by this name. Subject’s correct registered name is as per heading.

 

The postal address given by you : “Massive 2 (Badamdar Qesebesi) Building 231, 1021 Baku Badamdar Stq Sabail District” applies to subject’s formerly registered address. Please note that subject’s correct administrative office address is as per heading.

 

Interviewed : Ali Mammadali Oglu Alizade (Deputy Managing Director).

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.26

UK Pound

1

Rs.99.53

Euro

1

Rs.73.47

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

ANK

 


 

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.