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MIRA INFORM REPORT
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Report No. : |
489001 |
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Report Date : |
03.02.2018 |
IDENTIFICATION DETAILS
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Name : |
ARMA LEATHER LLC |
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Registered Office : |
Kuybishev Street
18/1, Yerevan 0014 |
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Country : |
Armenia |
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Date of Incorporation : |
21.12.2016 |
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Com. Reg. No.: |
269.110.939361 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Manufacturers of
leather. |
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No. of Employees : |
50 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
B |
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Credit Rating |
Explanation |
Rating Comments |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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Status : |
Relatively New Business |
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Payment Behaviour : |
Unknown |
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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 (30.06.2017) |
Current Rating (30.09.2017) |
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Armenia |
B2 |
B2 |
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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 |
ARMENIA - ECONOMIC OVERVIEW
Under the old Soviet central planning system, Armenia developed a modern industrial sector, supplying machine tools, textiles, and other manufactured goods to sister republics, in exchange for raw materials and energy. Armenia has since switched to small-scale agriculture and away from the large agro industrial complexes of the Soviet era. Armenia has only two open trade borders - Iran and Georgia - because its borders with Azerbaijan and Turkey have been closed since 1991 and 1993, respectively, as a result of Armenia's ongoing conflict with Azerbaijan over the separatist Nagorno-Karabakh region.
Armenia joined the World Trade Organization in January 2003. The government has made some improvements in tax and customs administration in recent years, but anti-corruption measures have been largely ineffective. Armenia will need to pursue additional economic reforms and strengthen the rule of law in order to raise its economic growth and improve economic competitiveness and employment opportunities, especially given its economic isolation from Turkey and Azerbaijan.
Armenia's geographic isolation, a narrow export base, and
pervasive monopolies in important business sectors have made it particularly
vulnerable to deteriorations in the global commodity markets and the economic
challenges in Russia. Armenia is particularly dependent on Russian commercial
and governmental support, as most key Armenian infrastructure is Russian-owned
and/or managed, especially in the energy sector. Remittances from expatriates
working in Russia are equivalent to about 7-8% of GDP. Armenia joined the
Russia-led Eurasian Economic Union in January 2015, but has expressed interest
in expanding its economic ties with the European Union as well, and in March
2017 an EU-Armenia Comprehensive and Enhanced Partnership Agreement was
initiated. Armenia’s rising government debt is leading Yerevan to tighten its
fiscal policies – the debt almost reached the debt to GDP
threshold set by national legislation as of March 2017.
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Source
: CIA |
COmpany NAME
Arma Leather LLC
ADDRESS
Street : Kuybishev
Street 18/1
Town : Yerevan
0014
Country : Armenia
Mobile : (374
91) 434 538 (Vaik Karagulyan) / (374 94) 656 004 (Mr.David)
E-Mail : vahuk@yandex.ru
Extended Name : Arma
Leather Limited Liability Company
SENIOR COMPANY
PERSONNEL
Name Position
1. Ervan
Ayqaz Managing Director
2. Vaik
Karagulyan Deputy Managing Director
3. Mr.David Accountant / Parvanyan Consulting LLC
Total Employees : 50
PAYMENTS
Unknown
Subject is a
newly-established business incorporated on 21 December 2016 and commenced
operations in February 2017.
It is normal
accepted practice for international suppliers to deal on secured terms with
Armenian importers.
PRINCIPAL BANKERS
NAME : ARMSWISSBANK
CJSC
Branch : Vazgen
Sargsyan Street 10
Town : Yerevan
0010
Telephone: (374 10) 529 591
Fax : (374
10) 529 591
FINANCIAL INFORMATION
As the Company has
only recently commenced operations, relevant financial information is not
available. However, the subject interviewed offered the following information :
Sales
Turnover : US DLRS 800,000 - 2017
– exact *
: US DLRS 2,400,000 - 2018 – projected
Net Profit :
US DLRS (100,000) - 2017 – exact *
* First 10 months
of operations (February – December).
* In 2017 subject
incurred loss of US DLRS (100,000) due to investments in machine tools (US DLRS
500,000).
Financial year
ends 31 December.
LEGAL STATUS AND HISTORY
Date Started : 21 December 2016
History : The
subject company was established in Yerevan on 21 December 2016 and commenced
operations in February 2017.
C.R. No. : 269.110.939361
Tax No.: 02267957
Authorised Capital
: DRAM 50,000
Paid-Up Capital : DRAM 50,000
Limited Liability Company with the following sole
shareholder :
Ervan Ayqaz 100%
ACTIVITIES
The Company is
involved in the following activities :
Manufacturers of
leather.
NACE Code: 1511
Exports to Russia,
India, Turkey and Georgia.
Subject does not
import.
Subject’s
accounting outsourcing services provided by the following company:
Parvanyan
Consulting LLC
Komitasi Avenue 65
Yerevan 0014
Telephone: (374
10) 206 100
FACILITIES
The Company has
the following facilities :
Rented premises
comprising administrative offices, a manufacturing unit and storage facilities
located at the heading address.
REGISTERED OFFICE
Kuybishev Street
18/1
Yerevan 0014
SPECIAL NOTE
Interviewed: Vaik
Karagulyan (Deputy 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 64.08 |
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1 |
INR 91.34 |
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Euro |
1 |
INR 80.03 |
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AMD |
1 |
INR 0.13 |
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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NIY |
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Report Prepared
by : |
SYL |
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
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
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.