MIRA INFORM REPORT

 

 

Report No. :

346145

Report Date :

24.10.2015

 

IDENTIFICATION DETAILS

 

Name :

QIZILQUMSEMENT AO

 

 

Registered Office :

Navoi Street 3 Navoi 210103

 

 

Country :

Uzbekistan

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

23.12.1994

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacturers of cement and cement products.

 

 

No. of Employees :

Not Available

 

 

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 :

Sum 20,000,000,000

 

 

Status :

Moderate

 

 

Payment Behaviour :

No Complaints

 

 

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)

Uzbekistan

B2

B2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

UZBEKISTAN - ECONOMIC OVERVIEW

 

Uzbekistan is a dry, landlocked country; more than 60% of the population lives in densely populated rural communities. Export of natural gas, gold and cotton provides a significant share of foreign exchange earnings. Despite ongoing efforts to diversify crops, Uzbekistani agriculture remains largely centered around cotton; Uzbekistan is now the world's fifth largest cotton exporter and sixth largest producer.

The country is beginning to enforce a ban on the use of child labor in its cotton harvest and is trying to address international criticism for its previous use of this practice. Following independence in September 1991, the government sought to prop up its Soviet-style command economy with subsidies and tight controls on production and prices. A sharp increase in the inequality of income distribution has hurt the lower ranks of society since independence. While aware of the need to improve the investment climate, the government continues to intervene in the business sector and has not addressed the impediments to foreign investment in the country. In 2003, the government accepted Article VIII obligations under the IMF, providing for full currency convertibility. However, strict currency controls and tightening of borders have lessened the effects of convertibility and have also led to some shortages that have further stifled economic activity. The Central Bank often delays or restricts convertibility, especially for consumer goods.

Uzbekistan's growth has been driven primarily by state-led investments and a favorable export environment. In the past Uzbekistani authorities have accused US and other foreign companies operating in Uzbekistan of violating Uzbekistani laws and have frozen and even seized their assets. At the same time, the Uzbekistani Government has actively courted several major US and international corporations, offering financing and tax advantages. Diminishing foreign investment and difficulties transporting goods across borders further challenge Uzbekistan’s economy, though it recently has intensified economic ties to Beijing. Tashkent began exporting natural gas to China and Chinese investments in the country have substantially increased.

 

Source : CIA


Company name

 

Qizilqumsement AO (Correct)

JSC QIZILQUMSEMENT (Requested)

_____________________________________________________________________

 

ADDRESS

 

Street                           : Navoi Street 3

 

Town                            : Navoi 210103

Country                         : Uzbekistan

 

Telephone                     : (998 79) 223 6490 / 223 4271 / 223 9674 (Albert Talgatovich) / 229 8389 / 229 8375

Fax                               : (998 79) 223 0566

E-Mail                           : info@qizilqumsement.uz

Website                        : www.qizilqumsement.uz

 

Extended Name            : Qizilqumsement Aktsyonernoye Obshchestvo

 

English Translation        : Qizilqumsement JSC

 

Formerly known as        : Navoi Tsement Kombinat

_____________________________________________________________________

 

SENIOR COMPANY PERSONNEL

 

   Name                                                            Position

 

1. Rustam Ilyasovich Aykhodzhaev                     General Manager

 

2. Murodullo IslomovichIslomov                         Deputy General Manager / Production

 

3. Tursunmurod Khudaykulovich Suyunov           Chief Engineer

 

4. Albert Talgatovich Iskakov                              Financial Manager  

 

Total Employees : 3,500

_____________________________________________________________________

 

PAYMENTS

 

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

 

Subject is a regional scale enterprise which produces more than a half of cement and cement production of the country in terms of volume.

 

We consider it is acceptable to deal with subject for LARGE amounts,

although it is normal accepted practice for international suppliers to deal on secured terms with Uzbekistani importers.

 

Opinion on maximum credit : SUM 20,000,000,000 (higher amounts may be considered with governmental guarantees)

 

Trade risk assessment: Normal

_____________________________________________________________________

 

PRINCIPAL BANKERS

 

NAME                : HAMKORBANK JSCB

 

Branch               : Chilanzar Branch, Chilanzar District, Block D20A

Town                 : Tashkent

 

Telephone         : (998 71) 150 5510

Fax                    : (998 71) 150 5510

_____________________________________________________________________

 

FINANCIAL INFORMATION

 

Balance Sheets as at 31 December 2014 showed :

 

                                                                                   31/12/2013          31/12/2014

                                     

                                                                                    (in thousands of SUM)

 

ASSETS

 

LONG-TERM ASSETS

Fixed assets:

Initial value                          429,630,568    537,075,622

Depreciation                          (238,348,660)  (270,503,597)

Depreciated value                      191,281,908    266,572,025

 

Intangible assets:

Initial value                               13,930      2,551,930

Depreciation                                (1,042)        (3,828)

Depreciated value                           12,888      2,548,102

long term investments                    2,416,956      2,187,520

Securities                               2,350,208      2,120,772

Investments in subsidiaries

business entities                           21,438         21,438

Investments in affiliated

entities                                     8,189          8,189

Investments in companies

with foreign capital                        37,121         37,121

Equipment for installation               2,130,515     23,850,144

Capital investments                      7,156,405     31,099,796

Long-term receivables                   35,858,806     93,705,364

Total long-term assets                 238,857,478    419,962,951

Current assets:

Inventories                            191,859,452    298,019,252

Production stock                       149,615,768    252,109,577

Unfinished production                   24,520,785     26,240,988

Finished goods                          17,314,931     19,315,200

Products                                   407,968        354,487

Future expenses                         10,790,510        369,312

Receivables total                       74,656,339     57,267,073

Including :

Overdue                                  1,503,424     14,875,685

Trade receivables                        1,081,372      3,284,658

Receivables from subsidiaries

and affiliates                                   -        112,853

Advances paid to employees                  57,016         61,782

Advances paid to suppliers

and contractors                         72,365,055     34,037,971

Tax and duties in advances                 535,321     17,731,247

Advances in insurance &

Government funds                            47,471          5,919

Receivables from employees                 154,180          4,085

Other receivables                          415,924      2,028,558

Cash & cash equivalents                 25,556,247     26,694,944

Cash in hand                                     5              1

Cash in bank                             9,702,692     10,892,632

Cash in foreign currency                 9,215,532      3,837,414

Other cash equivalence                   6,638,018     11,964,897

Short-term investments                 319,516,000    198,861,431

Other current assets                         8,204          3,555

Total assets                           622,386,752    581,215,567

TOTAL CURRENT ASSETS                   861,244,229  1,001,178,519

 

LIABILITIES & EQUITY

 

Charter capital                        447,516,900    447,516,900

Additional capital                         593,499        593,499

Reserve capital                        127,677,104    139,516,593

Undistributed profit (retained loss)   225,935,423    323,196,333

Purpose receipts                           923,304        923,304

TOTAL EQUITY                           802,646,229    911,746,629

 

LIABILITIES

Long-term liabilities                   19,177,591      9,769,175

Including:

Long-term bank loans                    19,177,591      9,769,175

Current liabilities                     39,420,409     79,562,714

Including:

Current liabilities                     39,420,409     50,440,858

Current overdue liabilities              1,598,071      5,415,140

Payables to suppliers and contractors    4,132,586     16,851,006

Receivables from subsidiaries and

Payables to affiliates                      75,254             - 

Advances received                        9,917,668     14,962,972

Tax payables                            17,085,702      6,932,527

Payables to state funds                  4,738,195      6,664,992

Payables to shareholders                   572,002        677,237

Wage arrears                             2,741,307      4,131,113

Short-term bank loans                           -      29,121,856

Other payables                             157,695        221,001

TOTAL LIABILITIES                       58,598,001     89,331,889

TOTAL LIABILITY & EQYITY               861,244,229  1,001,078,518

 

INCOME STATEMENT

 

Revenue                                825,131,767    919,177,096

Net revenue                            790,228,809    870,774,396

Cost of sale                          (288,140,364)  (363,530,762)

Gross profit                           502,171,444    507,706,712

Expenses of the period                (100,365,600)  (130,528,550)

Distribution costs                     (20,818,509)   (23,412,741)

Administrative expenses                (13,045,636)   (20,679,384)

Other operating expenses               (66,501,455)   (86,436,425)

Other operating income                   3,754,722      7,353,600

Profit (loss) from operating

activities                             405,560,566    384,531,762

Income from financial

activities                              26,285,409     25,152,160

Dividends                                      797             -

Interest income                         21,642,703     21,488,534

Income from currency translation

differences                              4,641,882      3,663,626

Other income from financial

activities                                      27

Expenses from financial activities      (5,538,513)    (8,375,864)

Expenses as interests                     (558,417)    (1,293,923)

Loss from currency translation

differences                             (4,980,096)    (7,081,941)

Profit before taxation                  426,307,462   401,308,059

Tax income                              (7,220,487)            -

Excess profit tax                     (190,029,355)  (225,166,557)

Other taxes                             (3,122,197)            -

Net profit                              225,935,422   176,141,502                   

 

Financial year ends 31 December.

 

Sales Turnover              : SUM 825,131,767,000 - 2013 - exact

                                                : SUM 919,177,096,000 - 2014 - exact

                       

Net Profit                      : SUM 225,935,422,000 - 2013 - exact

                                    : SUM 176,141,502,000 - 2014 - exact

 

Financial year ends 31 December.

_____________________________________________________________________

 

LEGAL STATUS AND HISTORY

 

Date Started                 : 23 December 1994

 

History                          : The subject company was established in Uzbekistan on 23 December 1994, however its origins can be traced back to 1970.

 

Tax No.             : INN 200002878

 

Authorised Capital         : SUM 447,516,900,000

 

Paid-Up Capital             : SUM 447,516,900,000

 

Aktsyonernoye Obshchestvo (joint stock company) with the following

shareholders :

 

   Shareholders                                     Percentage

 

1. State of Uzbekistan                            86.92%

 

2. Other undisclosed shareholders            13.08%

_____________________________________________________________________

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Manufacturers of cement and cement products.

 

Subject’s main products includes:

 

- Portland cement 500 D0 (PC500D0);

- Portland cement 500D0N (PC500D0N);

- Portland cement 400 D0 (PC400D0);

- Portland cement 400 D0N (PC400 D0N);

- Portland cement 400 D5 (PC400 D5);

- Portland cement 400 D20 (PC400D20);

- Portland cement 400 КD20 (PC400 KD20);

- Sulphate resisting Portland cement 400 D0 (SRPC400D0);

- Oil-well Portland cement OPC I 100 (OCP I 100);

- Lime rock stone - fraction 5х10;

- Lime rock stone - fraction 5х20;

- Lime rock stone - fraction 20х40;

- Lime rock stone - fraction 40,80(70).

 

NACE Code: 2351

 

Imports from Russia.

 

Exports to Kazakhstan.

_____________________________________________________________________

 

FACILITIES

 

The Company has the following facilities :

 

Owned premises comprising administrative offices, a manufacturing unit and storage facilities located at the heading address as well as one branch office located elsewhere in Tashkent.

_____________________________________________________________________

 

REGISTERED OFFICE

 

Navoi Street 3

Navoi 210103

_____________________________________________________________________

 

SPECIAL NOTES

 

You enquired on: JSC QIZILQUMSEMENT. Please note that subjet’s correct registered name is as per heading.

 

Interviewed: Albert Talgatovich Iskakov (Financial Manager).  

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.88

UK Pound

1

Rs.99.88

Euro

1

Rs.72.06

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

DPT

 

               

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.