MIRA INFORM REPORT

 

 

Report No. :

505518

Report Date :

26.04.2018

 

IDENTIFICATION DETAILS

 

Name :

BALACANS MMC

 

 

Registered Office :

Heydar Aliyeva Street 54, Balakan District, Balakan AZ0800

 

 

Country :

Azerbaijan

 

 

Financials (as on) :

2017 [Summarized]

 

 

Date of Incorporation :

26.07.2006

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

The company is involved in the following activities:

Manufacturers of Juices.

 

 

No. of Employees :

100-150 (Number Fluctuates According to Season)

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

B

 

Credit Rating

 

Explanation

Rating Comments

B

Medium Risk

Business dealings permissible on a regular monitoring basis

 

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

 

Country Name

                Previous Rating               

(30.09.2017)

Current Rating

(31.12.2017)

Azerbaijan

B2

B2

 

Risk Category

 

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

AZERBAIJAN - ECONOMIC OVERVIEW

 

Prior to the decline in global oil prices since 2014, Azerbaijan's high economic growth was attributable to rising energy exports, and some non-export sectors also featured double-digit growth. 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 expected completion of the geopolitically important Southern Gas Corridor between Azerbaijan and Europe will open up another source of revenue from gas exports. Declining oil prices caused a 3.1% contraction in GDP in 2016, and a 0.8% decline in 2017, highlighted by a sharp reduction in the construction sector. The economic decline has been accompanied by higher inflation and a weakened banking sector in the aftermath of the two sharp currency devaluations since 2015. Azerbaijan’s financial sector continued to struggle in 2017. In May 2017, Baku allowed the state-owed International Bank of Azerbaijan (IBA), the nation’s largest bank, to default on some of its outstanding debt and file for bankruptcy in the US.

 

Azerbaijan has made limited progress with 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, but the government has made efforts to combat corruption, particularly in customs and with the “ASAN” one-stop window concept for government services. Several other obstacles impede Azerbaijan's economic progress, including the need for more foreign investment in the non-energy sector and the continuing conflict with Armenia over the Nagorno-Karabakh region. While trade with Russia and the other former Soviet republics remains important, Azerbaijan has expanded trade with Turkey and Europe and is seeking new markets for non-oil/gas exports, mainly from the agricultural sector, for example with Gulf Cooperation Council member countries, the US, and others.

 

Long-term prospects depend on world oil prices, Azerbaijan's ability to implement export routes for its growing gas production, and its ability to improve the business environment and diversify the economy. In late 2016, the President approved a strategic roadmap that identified key non-energy segments of the economy for development, such as agriculture, logistics, and tourism. In October, the long-awaited Baku-Tbilisi-Kars railway, stretching from the Azerbaijani capital to Kars in north-eastern Turkey, began limited service.

 

Source : CIA

 

 

COMPANY REPORT

 

CO. NAME :                  BALACANS MMC (CORRECT)

                                    BALACANS LLC (REQUEST)

 

 

ADDRESS

 

Street     : Heydar Aliyeva Street 54

Area       : Balakan District

Town       : Balakan AZ0800

Country    : Azerbaijan

Mobile     : (994 50) 273 3603 (Mekhti Dibirov) / (994 55) 223 9747 

E-Mail     : office@balacans.az / mehti.dibirov@gmail.com

Website    : www.balacans.az

Trading Style  : Innabi / Well

Extended Name  : Balacans Mehdud Mesuliyyetli Cemiyyeti

English Translation : Balacans LLC

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                                            Position

 

1. Abdusalam Qapurovich Abdusalamov               Managing Director

 

2. Mekhti Dibirov                                                Chief Accountant

 

Total Employees: 100-150 (number fluctuates according to season)

 

 

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 Azerbaijani importers.

 

Trade risk assessment: Normal

 

 

PRINCIPAL BANKERS

 

NAME     : INTERNATIONAL BANK OF AZERBAIJAN OJSC

Branch   : Nizami Street 67

Town     : Baku AZ1005

Telephone: (994 12) 493 0091

Fax      : (994 12) 493 0091     

 

The company also has an account with the following banks:

 

1. Azer Turk Bank OJSC

   J.Mammadguluzadeh Street 85

   Baku AZ1000

   Telephone: (994 12) 404 1445

   Fax      : (994 12) 599 1011

 

2. Pasha Bank OJSC

   Yusif Mammadaliyev Street 15

   Baku AZ1005

   Telephone: (994 12) 496 5000

   Fax      : (994 12) 496 5010

 

 

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 4,500,000 - 2016 - exact

                                                : NEW MANAT 3,500,000 - 2017 – exact

                                                : NEW MANAT 1,500,000 – 2018 – exact *

                                                : NEW MANAT 5,000,000 – 2018 – projected 

 

Net Profit                       : NEW MANAT   800,000 - 2016 – exact

                                                : NEW MANAT   600,000 – 2017 – exact

 

* 3 months results (January – March).

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started : 26 July 2006

 

History : The subject company was established in Baku on 26 July 2006.

 

Tax No.: VOEN 3800147491      

 

Authorised Capital : NEW MANAT 10,000

 

Paid-Up Capital : NEW MANAT 10,000

 

Mehdud Mesuliyyetli Cemiyyeti (limited liability company) with the following sole shareholder:

 

Balokanskiy Konservniy Zavod AO      100%

 

Affiliated companies of the subject company:

 

Associates

 

1. Belokan Khleb

 

2. Belokanskiy Mineralniy Vody

 

 

ACTIVITIES

 

The company is involved in the following activities:

 

Manufacturers of Juices.

 

NACE Code: 1032

 

Imports from Turkey, Austria and Russia.

 

Exports to Russia.

 

 

FACILITIES

 

The Company has the following facilities:

 

Owned office premises, a manufacturing unit and storage facilities located at the heading address as well as a branch office located elsewhere in Baku (see 'Branch Offices' below).

 

 

REGISTERED OFFICE

 

Heydar Aliyeva Street 54

Balakan District

Balakan AZ0800

BRANCH OFFICES

 

Salyan Highway 12

Sabail District

Baku AZ1000

 

 

GENERAL INFORMATION

 

As of 1 January 2006 the Government of Azerbaijan redenominated NEW MANAT. One NEW MANAT equals 5,000 old NEW MANATs.

 

 

SPECIAL NOTE

 

The telephone numbers which you provided: +994 12 43755 64 / +119 5 14 54 are incorrect. Please note that subject's correct telephone numbers are as per heading.

 

Interviewed: Mekhti Dibirov (Chief Accountant).

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 66.70

UK Pound

1

INR 93.14

Euro

1

INR 81.43

AZN

1

INR 39.16

 

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

VAR

 

 

Report Prepared by :

TPT

 

 

RATING EXPLANATIONS

 

Credit Rating

 

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

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

·         Company background and operations size

·         Promoters / Management background

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

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.