MIRA INFORM REPORT

 

 

Report No. :

344122

Report Date :

15.10.2015

 

IDENTIFICATION DETAILS

 

Name :

ASOTSIATSIA SAMKHAREO GANVITAREBA MOMAVALI SAKARTVELOSTVIS

 

 

Registered Office :

T. Tabidze Street 39, Flat No. 2, Vaki Distric, Tbilisi

 

 

Country :

Georgia

 

 

Date of Incorporation :

28.12.2010

 

 

Legal Form :

Non Profit Association

 

 

Line of Business :

The Subject is involved in the following activities:

Subject assists vulnerable communities in social and economic development and strengthen their self-resilience, provide technical assistance to local governments in development and adaptation of advanced management systems and methodologies.

 

 

No. of Employees :

25

 

 

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 :

LARI 50,000

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)

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

 


COMPANY REPORT

 

CO. NAME:       ASOTSIATSIA SAMKHAREO GANVITAREBA MOMAVALI SAKARTVELOSTVIS

                        (CORRECT)

                         ASSOCIATION RURAL DEVELOPMENT FOR FUTURE GEORGIA

                        (REQUESTED)

 

 

ADDRESS

 

Street   :                       Gabriel Isakadze Street 3A

Town     :                      Tbilisi 0160

Country  :                      Georgia

Telephone:                    (995 32) 224 0501 / Mobile (995 595) 102 222

Fax      :                        (995 32) 238 1637

E-Mail   :                       info@rdfg.ge / vgrigolashvili@rdfg.ge / ntsakadze@rdfg.ge

Website  :                     www.rdfg.ge

Shortform Name :          RDFG

 

English Translation : Association Rural Development for Future Georgia

 

Also Known As : Assotsiatsiya Regionalnoe Razvitie dla Budushego Gruzii / Association Rural Development for Future Georgia (RDFG)

 

 

SENIOR COMPANY PERSONNEL

 

  Name                                                 Position

 

Supervisory Board

 

1. Ivane Grigolashvili                             Chairman

 

2. Ia Dadunashvili                                  Member of the Board 

 

3. Teona Kupunia                                   Member of the Board

 

Management

 

1. Ivane Grigolashvili                             Executive Director

 

2. Nata Tsakadze                                   Chief Accountant

 

Total Employees : 25

 

PAYMENTS

 

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

 

Subject is a non-profit non-commercial organisation founded in 2010 by Ivane Grigolashvili, Ia Dadunashvili and Teona Kupunia.

 

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 Georgian importers.

 

Opinion on maximum credit : LARI 50,000

 

Trade risk assessment: Normal

 

 

PRINCIPAL BANKER

 

NAME     :                     BANK OF GEORGIA JSC 

Branch   :                      Gagarin Street 29A 

Town     :                      Tbilisi 0105

Telephone:                    (995 32) 244 4256

Fax      :                        (995 32) 244 4289

 

 

FINANCIAL INFORMATION

 

Subject is funded by means of donations provided by donors. Subject interviewed offered the following information :

 

Value of Projects Implemented : EURO 500,000 - 2014 - exact

 

Financial year ends 31 December.                                           

 

 

LEGAL STATUS AND HISTORY

 

Date Started : 28 December 2010

 

History : Subject was established in Georgia on 28 December 2010, however origins of its operations can be traced back to autumn 2010.

 

ID Code : 404882980

 

Capital : not applicable

 

Subject is a Non-Profit Association with the following founders :

 

1. Ivane Grigolashvili

  (Georgian national / Personal No.: 01008019005)

 

2. Ia Dadunashvili

  (Georgian national / Personal No.: 01018002744)

 

3. Teona Kupunia

  (Georgian national / Personal No.: 01024024146)    

 

 

ACTIVITIES

 

The Subject is involved in the following activities :

 

Subject assists vulnerable communities in social and economic development and strengthen their self-resilience, provide technical assistance to local governments in development and adaptation of advanced management systems and methodologies. Main directions of activities are :

 

- Social-Economic Development : working with the different groups of

  society to improve their social-economic conditions, through 

  various vocational training, economic development and social

  projects;

 

- Disaster Management/DRR : working with the local communities to

  increase their resilience to disasters caused by manmade and

  natural hazards and promote establishment of strategic and

  systematic approaches in disaster management on regional and

  central levels of the government;

 

- Gender Mainstreaming : working with the target groups to ensure

  mainstreaming of gender perspective in the process of designing,

  planning and assessing interventions both at grassroots and

  legislative levels;

 

- Gender : specific actions implemented by RDFG equally enable women

  and man to participate in and benefit from development efforts;

 

- Youth Engagement : working with the youth through integrating youth

  engagement component in RDFG’s core interventions acknowledging

  that youth participation in problem-solving and decision-making

  builds self-confidence and ownership over their communities’

  future; the projects are designed with the goal to give youth

  opportunity to gain required education and skills to turn them into

  active citizens and promote their participation in civil life;

 

- Advocacy : facilitating empowerment of local communities to protect

  their rights and advocate for their needs in close collaboration

  with local and central governments, as well as other stakeholders  

  in the country;

 

- Peace Building : working with the conflict affected population to

  promote peace, friendship and understanding among peoples to avoid

  social, national and religious conflicts.

 

Subject established a Disaster Risk Reduction Centre in 2011 to enhance local communities’ resilience to natural hazards and to promote a culture of prevention through the provision of coordinated and systematic approaches in disaster management at regional and central levels. The DRR Centre has implemented several projects focusing on school-based disaster risk reduction, local communities’ disaster management capacity, and building and strengthening the national emergency management system. The DRR Centre is a partner of the DIPECHO implementing organisations (namely ACF, Oxfam and UNICEF), and in its the framework of school-based disaster risk reduction, it has covered 27 schools in Samtskhe-Javakheti, Imereti, Kakheti, Samegrelo, Zemo Svaneti and Gali District of Abkhazia. Representatives of 33 communities were involved in disaster management capacity building activities conducted by the DRR Centre in Adjara, Zemo Svaneti and Gali District of Abkhazia. The DRR Centre partners with EMD and other stakeholders to facilitate the improvement of the emergency management system at central and local levels. The DRR Centre participates in the design and revision of various guidelines, standards and templates, and promotes commonly agreed DRR terminology.

 

Subject has the following Donor Organizations :

 

- nonprofit international and local organizations/networks;

- governmental institutions;

- local self-governing structures;

- local households and targeted community members;

- UN Agencies;

- European Union;

- Governmental Institutions;

- International NGOs.

 

Completed projects include :

 

- Economic Development for Georgia’s Internally Displaced Persons 

  (IDPs) through Greenhouses;

 

Project code : RDFG0001EDGHIPGRT

Donor : Heifer International in Georgia

Start date : 01 January 2011

End date : 31 December 2013

 

The overall goal of the project was to improve livelihoods and economic conditions of IDPs and local residents in 2008 conflict effected area. Three greenhouses compiling modern standards were constructed in the targeted area serving at the same time as demonstration plots in modern greenhouse technologies within the association’s Farmers Field Schools (FFS). The FFS provided farmers with capacity building opportunities in modern agricultural technologies through trainings, agronomic services, demonstrations and practical exercises for project beneficiaries in three villages. The project also encompassed free distribution of high productivity, early harvest tomato seedlings to nine hundred beneficiaries.

 

- Economic Development through agricultural assistance for IDP

  farmers in Mtskheta-Mtianeti;

 

Project code : RDFG0007EDMMBMZGRT

Donor : The Federal Ministry for Economic Cooperation and Development

        of Germany

Start date : 01 November 2011

End date : 28 February 2014

 

The overall goal of phase I was to contribute to poverty reduction and to youth inclusion in livelihood development for IDP families in Georgia. Project activities included establishment of Farmers Regional Information Centre (Extension Service Center) and Youth Farmers’ Centers, promotion of farmers’ union/cooperatives, arrangement of demonstration plots and markets, provision of trainings and consultations on agricultural development, business development DRR and Climate Change topics within RDFG Farmers Field Schools (FFS).

NACE Code : 9499

 

Subject neither imports nor exports.

 

 

FACILITIES

 

The Subject has the following facilities :

 

Rented premises comprising administrative offices located at the heading address as well as a branch office located in Gori.

 

 

REGISTERED OFFICE

 

T. Tabidze Street 39, Flat No. 2

Vaki District

Tbilisi

 

 

SPECIAL NOTES

 

You enquired on : “ASSOCIATION RURAL DEVELOPMENT FOR FUTURE GEORGIA”. Please note that this name applies to an English translation of the subject’s name. Subject’s correct registered name is as per heading.

 

The address given by you : “T Tabidze 39/2 Tibilisi Gruzja” is misspelt and applies to subject's registered office address. Please note that subject’s correct administrative office address is as per heading.

 

The telephone number provided by you : “01008019005” is incorrect. Please note that subject’s correct administrative office telephone numbers are as per heading.

 

Interviewed : Nata Tsakadze (Chief Accountant).


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.11

UK Pound

1

Rs.99.50

Euro

1

Rs.74.24

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

 


 

               

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.