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MIRA INFORM REPORT
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Report No. : |
503619 |
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Report Date : |
23.04.2018 |
IDENTIFICATION DETAILS
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Name : |
EUROTRADE SHPS |
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Registered Office : |
Diromi Village, Business yard ,
Parsadani Street 6, Vake-Saburtalo District, Tbilisi |
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Country : |
Georgia |
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Financials (as on) : |
2017 |
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Date of Incorporation : |
30.11.2011 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Trading as importers, exporters,
wholesalers and distributors of washable and disinfection products,
manufactured casing, natural casing, packing products and spice &
functional additives. |
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No. of Employees : |
15 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Maximum Credit Limit : |
LARI 120,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Georgia |
C1 |
C1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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 electricity 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-Tbilisi-Ceyhan oil pipeline, the South Caucasus gas pipeline, and the Baku-Tbilisi-Kars railroad are part of a strategy to capitalize on Georgia's strategic location between Europe and Asia and develop its role as a transit hub for gas, oil, and other goods.
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 the period 2010-17, but FDI inflows, the engine of Georgian economic growth prior to the 2008 conflict, have not recovered fully. Unemployment remains persistently high.
The country is pinning its hopes for faster growth on a continued effort to build up infrastructure, enhance support for entrepreneurship, simplify regulations, and improve professional education, in order to attract foreign investment and boost employment, with a focus on transportation projects, hydropower, agriculture, and tourism. Georgia has historically suffered from a chronic failure to collect tax revenues; however, since 2004 the government has simplified the tax code, increased tax enforcement, and cracked down on petty corruption, leading to higher revenues. The government has received high marks from the World Bank for improvements in business transparency. 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. In mid-2014, Georgia concluded an association agreement with the EU, paving the way to free trade and visa-free travel. In 2017, Georgia signed Free Trade Agreement (FTA) with China as part of Tbilisi’s efforts to diversify its economic ties. Georgia is seeking to develop its Black Sea ports to further facilitate East-West trade.
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Source
: CIA |
Company name
Eurotrade ShPS (Correct)
EUROTRADE SHPS (WERSJA AN EUROTRADE LTD) (Requested)
ADDRESS
Street : Chkondideli Street 26
Town : Tbilisi 0180
Country : Georgia
Telephone : (995 32) 218 2202 / Mobiles (995 599) 389 090
/ (995 591) 884 424 (Lasha Mgaloblishvili) / (995 599) 001 698 (Tamar
Machavariani)
E-Mail :
info@eurotrade.ge / tamar.machavariani@eurotrade.ge / levan@eurotrade.ge
Extended Name : Eurotrade Shazguduli Pasukhismbgeblobis
Sazagadoeba
English Translation : Eurotrade Ltd
SENIOR
COMPANY PERSONNEL
Name
Position
1. Lasha Mgaloblishvili Managing Director
2. Tamar Machavariani Back Office
Total Employees : 15
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 Georgian importers.
Opinion on maximum credit : LARI
120,000
Trade risk assessment: Normal
PRINCIPAL BANKER
NAME : PROCREDIT BANK JSC
Branch : Al. Kazbegi Avenue 21
Town : Tbilisi
Telephone : (995 32) 220 2222
Fax : (995 32) 220 2223
FINANCIAL INFORMATION
Private companies in Georgia are not
required to publish or disclose balance sheets. However, the subject interviewed
offered the following information :
Sales Turnover
: LARI
3,870,830.0 – 2015 - exact
: LARI
4,567,579.4 – 2016 - exact
: LARI
6,000,000.0 – 2017 - approx
: LARI 12,000,000.0 – 2018 - projected *
Net Profit : LARI 780,000.0 - 2017 – approx.
Total Value of Stock Held : LARI
995,667 as in 2018
* Projected increase in sales turnover
in 2018 is due to favorable market conditions and expansion of the business.
Financial year 31 December
LEGAL STATUS AND HISTORY
Date Started : 30 November 2011
History : The subject company was
established in Georgia on 30 November 2011.
ID Code : 404919987
Authourized Capital : LARI 92,040
Paid-Up Capital : LARI 92,040
Shazguduli Pasukhismbgeblobis Sazagadoeba (limited liability company)
ShPS) with the following director and sole shareholder :
Director
Lasha Mgaloblishvili
(Georgian national / Personal No.:
01024039909)
Shareholder
Lasha Mgaloblishvili (100%) *
(Georgian national / Personal No.:
01024039909)
*It is understood that Otar
Bagadashvilli (Georgian national) is an unofficial partner in the business and
owns 50% of the shares.
ACTIVITIES
The Company is involved in the
following activities :
Trading as importers, exporters,
wholesalers and distributors of washable and disinfection products,
manufactured casing, natural casing, packing products and spice &
functional additives.
Subject's main suppliers include :
- Denico Food Ingredients, Denmark;
- Novodan, Denmark;
- Klaipeda, Lithuania.
NACE Code: 4618 - Agents specialised in
the sale of other particular products
Imports from Denmark, Lithuania,
Germany, Russia, Poland and India.
Exports occasionally to Azerbaijan and
Armenia.
FACILITIES
The Company has the following
facilities :
Rented premises comprising
administrative offices and storage facilitates located at the heading address.
Subject bought 4,000 sq. m. land
located in near USA embassy in Tbilisi and plans to build a warehouse unit in
near future.
REGISTERED OFFICE
Diromi Village, Business yard
Parsadani Street 6
Vake-Saburtalo District
Tbilisi
Subject’s former registered address was
located at:
Cherkezishvili Street 2
Vake-Saburtalo District
Tbilisi
SPECIAL NOTES
You enquired on: EUROTRADE SHPS (WERSJA AN
EUROTRADE LTD). Please note that the correct name is
as per heading.
The address which you provided: DIRMI
VILLAGE, BUSINESS YARD, TBILISI VAE SABURTALO DISTRICT. This applies to
subject's registered office address. Please note that subject's correct
administrative office address is as per heading.
Interviewed: Lasha Mgaloblishvili
(Managing Director).
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 66.02 |
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1 |
INR 92.73 |
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Euro |
1 |
INR 81.46 |
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GEL |
1 |
INR 26.98 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
KET |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low risk
of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably on
secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the business
is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
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Company
background and operations size
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Promoters
/ Management background
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Payment
record
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Litigation
against the subject
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Industry
scenario / competitor analysis
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Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.