|
|
|
MIRA
INFORM REPORT
|
Report No. : |
488993 |
|
Report Date : |
03.02.2018 |
IDENTIFICATION DETAILS
|
Name : |
|
|
|
|
|
Registered Office : |
Building 6/23 Pruzhanskiy District Brest
Region 225149 |
|
|
|
|
Country : |
Belarus |
|
|
|
|
Date of Incorporation : |
11.07.2014 |
|
|
|
|
Legal Form : |
Limited liability company |
|
|
|
|
Line of Business : |
Manufacturers of nonwoven materials
made from natural fibers for furniture and mattress manufacturing. |
|
|
|
|
No. of Employees : |
80 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
A |
|
Credit Rating |
Explanation |
Rating Comments |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
Maximum Credit Limit : |
B ROUBLE 112,000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow but Correct |
|
|
|
|
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.
BELARUS - ECONOMIC OVERVIEW
As part of the former Soviet Union, Belarus had a relatively well-developed, though aging industrial base; it retained this industrial base - which is now outdated, energy inefficient, and dependent on subsidized Russian energy and preferential access to Russian markets - following the breakup of the USSR. The country also has a broad agricultural base which is largely inefficient and dependent on government subsidies. After an initial burst of capitalist reform between 1991 and 1994, including privatization of smaller state enterprises and some service sector businesses, creation of institutions of private property, and development of entrepreneurship, Belarus' economic development greatly slowed. About 80% of all industry remains in state hands, and foreign investment has been hindered by a reluctance to welcome private investment absent joint ownership or affiliation with the state. A few businesses, which had been privatized after independence, were renationalized. State banks account for 75% of the banking sector.
Economic output declined for several years following the collapse of the Soviet Union, but revived in the mid-2000s due to the boom in oil prices. Belarus has only small reserves of crude oil, though it imports most of its crude oil and natural gas from Russia at prices substantially below world market prices. Belarus then derives export revenue by refining Russian crude and selling it at market prices. In late 2006, Russia began a process of rolling back its subsidies on oil and gas exports to Belarus. Several times since, Russia and Belarus have had serious disagreements over the level and price of Russian energy supplies. At one point in 2010, Russia stopped the export of all subsidized oil to Belarus save for domestic needs before the two countries reached a deal to restart the export of discounted oil to Belarus. Beginning in early 2016, Russia claimed Belarus began accumulating debt – reaching $740 million by April 2017 – for paying below an agreed price for Russian natural gas. Russia decided to reduce its export of crude oil as a result of the debt. In April 2017, Belarus agreed to pay its gas debt and Russia restored the flow of crude.
New non-Russian foreign investment has been limited in recent years. In 2011, a financial crisis began, triggered by government-directed salary hikes, compounded by an increased cost in Russian energy inputs and an overvalued Belarusian ruble that lead to a nearly three-fold devaluation of the Belarusian ruble. In November 2011, Belarus agreed to sell to Russia its remaining shares of Beltransgaz, the Belarusian natural gas pipeline operator, in exchange for reduced prices for Russian natural gas. The situation stabilized in 2012, after Belarus received part of a $3 billion loan from the Russian-dominated Eurasian Economic Community Bailout Fund, a $1 billion loan from the Russian state-owned bank Sberbank, and $2.5 billion from the sale of Beltransgaz to Russian state-owned Gazprom; nevertheless, the Belarusian currency lost more than 60% of its value, as inflation reached new highs in 2011 and 2012, before calming in 2013. In December 2013, Russia announced a new loan for Belarus of up to $2 billion for 2014. Notwithstanding foreign assistance, the Belarusian economy continued to struggle under the weight of high external debt servicing payments and trade deficit. In mid-December 2014, structural economic shortcomings were aggravated by the devaluation of the Russian ruble, which triggered a near 40% devaluation of the Belarusian ruble.
Since 2012, Belarus’s economy has suffered stagnation, which has led to widening productivity and income gaps between Belarus and neighboring countries. Since 2015, the Belarusian government has tightened its monetary policies (including allowing a more flexible exchange rate regime) and reduced subsidized government lending to state-owned industrial and agricultural enterprises, amid a drop in state budget revenues owing to falling global prices on key Belarusian export commodities - petroleum products and potash fertilizer.
|
Source
: CIA |
Company Name
Ekologicheskie Materialy OOO (Correct)
OOO ECOLOGICHESKIE MATERIALS (Requested)
ADDRESS
Street :
Building 6/23
Area :
Pruzhanskiy District
Province :
Brest Region 225149
Country :
Belarus
Telephone :
(375 17) 268 0000 / Mobile (375 29) 655 4464 (Managing Director)
Fax :
(375 17) 268 0000
E-Mail : ogil@mail.ru
Website : www.ecomat.by
Extended Name :
Ekologicheskie Materialy Obshchestvo s Ogranichennoy Otvetstvennostyu
English Translation : Ecological Materials LLC
SENIOR COMPANY PERSONNEL
Name Position
1. Oleg Vladimirovich Gil Managing
Director
2. Tatyana Nikolayevna Dmitrieva Chief
Accountant
Total Employees : 80
PAYMENTS
No complaints have been heard regarding
payments from local suppliers or banks.
In 2017 subject incurred loss of B
ROUBLE (300,000) due to investing into a manufacturing unit.
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 Belarusian importers.
Opinion on maximum credit : B
ROUBLE 112,000 *(no reason is heard to doubt the company, however in view of
the past loss situation we recommend international suppliers exercise a degree
of caution)
Trade risk assessment: Normal
* see "General Information"
section
PRINCIPAL BANKERS
NAME
: TEHNOBANK OJSC
Branch
: Kropotkina Street 44
Town
: Minsk 220002
Telephone: (375 17) 283 1510
Fax
: (375 17) 283 1510
FINANCIAL INFORMATION
Private companies in Belarus are not
required to publish or disclose balance sheets. However, the subject
interviewed offered
the following information :
Sales Turnover : US DLRS 1,000,000 - 2016 – exact *
: B ROUBLE 5,607,000 - 2017 – exact
Net Profit : US DLRS
(300,000) - 2016 – exact
: B ROUBLE (300,000) – 2017 – exact
**
* First 10 months of operations (March
– December).
** In 2017 subject incurred loss of B
ROUBLE (300,000) due to investing into a manufacturing unit.
Financial year ends 31 December.
LEGAL STATUS AND HISTORY
Date Started : 11 July 2014
History : The subject company was
established in Brest Region on 11 July 2014 and commenced operations in March
2016.
Tax No. : UNP 291209711
Authorised & Paid-Up Capital : B
ROUBLE 1,000
Shareholders Percentage
1. Ekaterina Popova 59%
2. Tatyna Martynovich 21%
3. Viktoriya Gil 20%
(wife of Mr. Oleg Vladimirovich Gil)
Affiliated companies of the subject
company :
Associates
1. Netkaniy Mir OOO
Pruzhanskiy District
Brest Region 225149
2. Gronema OOO
ACTIVITIES
The Company is involved in the
following activities :
Manufacturers of nonwoven materials
made from natural fibers for furniture and mattress manufacturing.
NACE Code: 3299
Imports from Vietnam, Malaysia and Sri
Lanka.
Exports to Poland, Russia, Lithuania
and Latvia.
FACILITIES
The Company has the following
facilities :
Rented office premises, a manufacturing
unit and storage facilities located at the heading address as well as a branch
office located elsewhere in Minsk (see 'Branch Offices' below).
REGISTERED OFFICE
Building 6/23
Pruzhanskiy District
Brest Region 225149
BRANCH OFFICES
Teplichnaya Street 1-6
Minsk 220114
GENERAL INFORMATION
As of 1 July 2016 the Government of
Belarus redenominated B ROUBLE. One B ROUBLE equals 10,000 old B ROUBLEs.
SPECIAL NOTE
You enquired on: OOO
ECOLOGICHESKIE MATERIALS. Please note that the correct name is as per
heading.
Interviewed: Tatyana Nikolayevna
Dmitrieva (Chief Accountant).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 64.08 |
|
|
1 |
INR 91.34 |
|
Euro |
1 |
INR 80.03 |
|
BYN |
1 |
INR 32.46 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
VAR |
|
|
|
|
Report Prepared
by : |
TRU |
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)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.