3decades

MIRA INFORM REPORT

Report No. :	489291
Report Date :	06.02.2018

IDENTIFICATION DETAILS

Name :	VOSTOK HOLDING OOO

Registered Office :	Sadyk Azimova Street 15, 4th Passage Yashnobod District, Tashkent 100047

Country :	Uzbekistan

Date of Incorporation :	17.06.1996

Com. Reg. No.:	3325

Legal Form :	Limited Liability Company

Line of Business :	Trading as importers and wholesalers of construction and interior decoration materials, floorings, laminate and wall paper.

No. of Employees :	19 (Subject) 73 (Subject and Affiliated Company)

RATING & COMMENTS

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

MIRA’s Rating :

Credit Rating

Explanation

Rating Comments

Medium Risk

Business dealings permissible on a regular monitoring basis

Maximum Credit Limits :	SUM 22,000,000

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

Country Name

Previous Rating

(30.06.2017)

Current Rating

(30.09.2017)

Uzbekistan

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

UZBEKISTAN - ECONOMIC OVERVIEW

Uzbekistan is a doubly landlocked country in which 51% of the population lives in urban settlements; the agriculture-rich Fergana Valley, in which Uzbekistan’s eastern borders are situated, has been counted among the most densely populated parts of Central Asia. Since its independence in September 1991, the government has largely maintained its Soviet-style command economy with subsidies and tight controls on production, prices, and access to foreign currency. Despite ongoing efforts to diversify crops, Uzbek agriculture remains largely centered on cotton; Uzbekistan is the world's fifth-largest cotton exporter and seventh-largest producer. Uzbekistan's growth has been driven primarily by state-led investments, and export of natural gas, gold, and cotton provides a significant share of foreign exchange earnings.

Recently, lower global commodity prices and economic slowdowns in neighboring Russia and China have hurt Uzbekistan's trade and investment and worsened its foreign currency shortage. Aware of the need to improve the investment climate, the government is taking incremental steps to reform the business sector and address impediments to foreign investment in the country. Since the death of first President Islam KARIMOV and election of President Shavkat MIRZIYOYEV, emphasis on such initiatives and government efforts to improve the private sector have increased. In the past, Uzbek authorities accused US and other foreign companies operating in Uzbekistan of violating Uzbek laws and have frozen and seized their assets.

As a part of its economic reform efforts, the Uzbek Government is looking to expand opportunities for small and medium enterprises and prioritizes increasing foreign direct investment. In September 2017, the government devalued the official currency rate by almost 50% and announced the loosening of currency restrictions to eliminate the currency black market, increase access to hard currency, and boost investment.

Source : CIA

COMPANY NAME

VOSTOK HOLDING OOO (CORRECT)

VOSTOK HOLDING OOO WERSJA ANG ORIENT HOLDING LTD. (REQUESTED)

ADDRESS

Street : Sadyk Azimova Street 15, 4th Passage

Area : Yashnobod District (frmly Khamzinskiy District), near Embassy of Japan

Town : Tashkent 100047

Country : Uzbekistan

Telephone : (998 71) 236 0101 (Deputy Managing Director) / 233 3623 / 233 5601

(Accounting Department) / 233 8075 / 233 1593 / 233 7234

Fax : (998 71) 220 6552

E-Mail : oriental@bcc.com.uz / vostok@bcc.com.uz /

Website : www.vostok.uz

Extended Name : Vostok Holding Obshchestvo s Ogranichennoy Otvetstvennostyu

English Translation : Vostok Holding Ltd

Also Known As : Vostok Holding MChJ / Vostok Kholding OOO / Vostok Xolding OOO

SENIOR COMPANY PERSONNEL

Name Position

1. Dmitriy Vilenovich Kharitonov Managing Director

2. Oksana Vladimirovna Kirilova Chief Accountant

3. Natalya Ivanovna Kramer Chief Accountant at Oriental Management DP

Total Employees: 19 (Subject)

73 (Subject and affiliated company)

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 Uzbekistani importers.

Opinion on maximum credit: SUM 22,000,000

Trade risk assessment: Normal

PRINCIPAL BANKERS

NAME : KAPITAL BANK JSC

Branch : Sayligokh Street 7

Town : Tashkent 100047

Telephone: (998 71) 200 1515

Fax : (998 71) 200 1616

Subject formerly had an account with:

Ipoteka Bank JSCB

Lisunova Street 69A

Tashkent 100071

Telephone: (998 71) 297 3924

Fax : (998 71) 294 9497

FINANCIAL INFORMATION

Private companies in Uzbekistan are not required to publish or disclose balance sheets. However, the subject interviewed offered the following information :

Sales Turnover : US DLRS 500,000 - 2006 - approx

: US DLRS 980,000 - 2007 - exact

: US DLRS 1,000,000 - 2008 – exact

: US DLRS 1,200,000 – 2009 – exact

: US DLRS 1,300,000 – 2010 – exact

: US DLRS 1,540,000 – 2011 – exact

: US DLRS 1,600,000 - 2012 - approx

: US DLRS 2,400,000 – 2013 – approx

: US DLRS 3,600,000 – 2014 - approx

: SUM 2,538,989,000 – 2015 – exact

: SUM 1,370,596,800 – 2016 – exact

: SUM 1,104,123,900 – 2017 – exact

Net Profit : SUM 409,618,200 – 2015 – exact

: SUM 769,482,600 – 2016 – exact

: SUM 663,054,900 – 2017 – exact

Financial year ends 31 December.

The following financial information applies to subject’s affiliated company, Oriental Management DP (latest available) :

Sales Turnover : US DLRS 3,491,800 - 2011 - exact

: US DLRS 8,405,800 - 2012 - exact *

: US DLRS 1,940,100 - 2013 – exact

: US DLRS 3,319,500 – 2014 – exact

: US DLRS 2,505,700 – 2015 – exact

: US DLRS 4,005,710 – 2016 – exact

: US DLRS 870,737 – 2017 – exact **

Net Profit : US DLRS 841,900 - 2011 - exact

: US DLRS 835,400 - 2012 - exact

: US DLRS 433,200 – 2013 – exact

: US DLRS 1,320,200 – 2014 – exact

: US DLRS 516,000 – 2015 – exact

: US DLRS 1,331,300 – 2016 – exact

Total Value of Stock Held : US DLRS 3,703,270 (as of 1 January 2017)

* A significant increase in sales turnover in 2012 was attributed to favourable market conditions and expansion of the business.

** 5 months results (January – May).

Financial year ends 31 December.

LEGAL STATUS AND HISTORY

Date Started : 17 June 1996

History : The subject company was established in Tashkent on 17 June 1996 on the basis of Innovatsionnaya Firma Vostok which was operating since 1988. Initially, subject’s shareholding structure were as following : Rinat Alanazarovich Zakirov, Dmitriy Kharitonov, Dmitriy Vladimirovich Rykov (USA national) and Umida Khodjaeva. In 2008 subject’s shareholding structure changed to the following:

- Rinat Alanazarovich Zakirov 45%

- Dmitriy Vilenovich Kharitonov 45%

- Umida Khodjaeva 10%

In 2014, subject’s shareholding structure changed to the present.

C.R. No.: 3325

Tax No. : INN 201963687

Statistic Code : OKPO 16336328

Activity Code : OKONKh 71150

Authorised Capital : SUM 27,620,000 (decreased from US DLRS 600,000)

Paid up Capital : SUM 27,620,000 (decreased from US DLRS 600,000)

Obshchestvo s Ogranichennoy Otvetstvennostyu (limited liability company) with the following shareholders :

Shareholders Percentage

1. Bakhodir Azmuddinovich Sadriddinov 55%

2. Igor Anatolevich Luchkin 45%

Affiliated company of Vostok Holding OOO :

Associate

Oriental Management DP

(Oriental Management Subsidiary Company)

(address as per heading)

Managing Director: Renat Allanazarovich Zakirov

Est.: 27 July 2000

C.R. No. : 2003184

Tax No. : INN 203348864 (issue date : 09/08/2000)

Statistics Code : OKPO 17817053

Activity Code : OKONKh 71150

Capital : US DLRS 400,000 (increased from US DLRS 150,000

in 4 July 2007)

Subsidiary of :

- Oriental Development Corporated

Berfield

Illinois

USA

ACTIVITIES

The Company is involved in the following activities :

Trading as importers and wholesalers of construction and interior decoration materials, floorings, laminate and wall paper.

Subject provides floor cleaning services.

NACE Code : 4613

Imports from Germany, Luxemburg, Russia, South Korea, Sweden, Belgium and Poland.

Imported from Ukraine.

Subject does not export, all sales are domestic.

Distributors for : Tarkett International GmBH (Germany), AS Creation Tappeten GmBH (Germany), DESSO (the Netherlands), ARMSTRONG (Germany), DECORA (Poland), Dr. Schutz (Germany), Ergis (Poland), LG Hausys (South Korea), Enia (Switzerland), Giardini (Italy), Balterio (Belgium), Egger (Germany), Beauflor (Belgium), VOX (Poland), Korner (Poland) and Bekaert Textiles (Belgium).

FACILITIES

The Company has the following facilities :

244 sq. m. owned premises comprising administrative offices, a retail outlet and storage facilities located at the heading address.

Subject formerly had 2 branch offices located elsewhere in Namangan and Samarkand.

REGISTERED OFFICE

Sadyk Azimova Street 15, 4th Passage

Yashnobod District

Tashkent 100047

SPECIAL NOTES

You enquired on: VOSTOK HOLDING OOO WERSJA ANG ORIENT HOLDING LTD. Please note that the correct name is as per heading.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 64.03
UK Pound	1	INR 90.40
Euro	1	INR 79.73
UZS	1	INR 0.0077

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

INFORMATION DETAILS

Analysis Done by :	PRI

Report Prepared by :	NIT

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.