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MIRA
INFORM REPORT
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Report No. : |
495823 |
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Report Date : |
12.03.2018 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
Gazapkhuli
Street 18 Vake-Saburtalo District Tbilisi
0177 |
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Country : |
Georgia |
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Date of Incorporation : |
28.03.2006 |
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Com. Reg. No.: |
205138493 |
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Legal Form : |
Limited liability
company |
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Line of Business : |
Subject
is a holding and management company for the group of companies whose members
are engaged in a diversified field of activities which includes the following:
energy, logistics, heavy industry, building materials, media and real estate.
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No. of Employees : |
2 |
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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Maximum Credit Limit : |
LARI 5,000 |
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Status : |
Moderate |
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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
Holdingi
Sakartvelos Industriuli Jgupi ShPS (Correct)
HOLDING
GEORGIAN INDUSTRIAL GROUP LTD (Requested)
ADDRESS
Building :
GIG Plaza
Street :
Gazapkhuli Street 18
Area :
Vake-Saburtalo District
Town :
Tbilisi 0177
Country :
Georgia
Telephone :
(995 32) 221 0187
Fax :
(995 32) 221 0187
E-Mail :
gig@gig.ge
Website : www.gig.ge
Extended Name : Holdingi Sakartvelos Industriuli Jgupi
Shazguduli Pasukhismbgeblobis Sazagadoeba
English Translation : Holding Georgian Industrial Group Ltd
SENIOR COMPANY PERSONNEL
Name Position
1.
Davit Bezhuashvili Chairman
2.
Nino Purtseladze Chief Accountant
Total
Employees : 2 (subject)
4,000
(group)
PAYMENTS
No
complaints have been heard regarding payments from local suppliers or banks.
Subject
is a flagship company for Georgian Industrial Group (GIG) of companies, which
is one of the largest industrial groups in Georgia.
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 5,000
Trade
risk assessment: Normal
PRINCIPAL BANKERS
NAME : TBC BANK JSC
Branch : Marjanishvili Street 7
Town : Tbilisi 0102
Telephone: (995 32) 227 2727
Fax : (995 32) 277 2774
FINANCIAL INFORMATION
Private
companies in Georgia are not required to publish or disclose balance sheets.
However, the subject interviewed offered
the
following information :
Revenue : LARI 1,000,000 - 2017 -
exact
Net
Profit : LARI 500,000 - 2017 - exact
Financial
year ends 31 December.
LEGAL STATUS AND HISTORY
Date
Started : 28 March 2006
History
: The subject company was established in Tbilisi on 28 March 2006.
C.R.
No. : 205138493
ID
Code : 4090/006
Authorised
Capital : LARI 25,000,000
Paid-Up
Capital : LARI 25,000,000
Shazguduli Pasukhismbgeblobis
Sazagadoeba (limited liability company) ShPS) with the following director and
sole shareholder :
Director
Davit
Bezhuashvili
(Georgian
national / Personal No.: 01017002296)
Shareholder Percentage
Chemeksim International Ltd 100%
Marshall Islands
C.R. No.: 735
Affiliated
companies of the subject company :
Subsidiaries
/ Associates
1.
Georgian International Energy Corporation
Delisi
Side Str. 3 pt 22, floor 5,
Tbilisi 0177
Georgia
Tel: (995 32) 210 295 / 210 332
Fax: (995 32) 210 288
E-mail: giec@giec.ge
The main activities of the company :
Importation and provision of
natural gas; Generation and transition of
electric energy;
Importation and distribution of oil
products; Gas supplied by
Energy Corporation amounts to 300 million
m3, which adds up to 25%
of demand on domestic market;
2.
Saqnakhshiri GIG Group
Karlo Lominadze Square 4
Tkibuli 4300
Georgia
Tel: (995 297) 222 00
E-mail: lamuna@mail.ru
The main activities of the company : coal
mining and coal
enrichment. Saqnakhshiri is the owner of the
biggest - Tkubuli
coal layer in Georgia. Current renovation
process provides the
possibility to reach 1.2 million tones of
coal extraction by 2010;
3.
Kutaisi Automechanical Plant Ltd
Automshenebli Str. 88
Kutaisi 4600
Georgia
Tel: (995 331) 93556 / 93141
Fax: (995 331) 93556
E-mail: kamp@gig.ge
The main activities of the company :
production of goods for
heavy industry, constructive, mining
enrichment and open cast mine
directions.
4.
Intertrans
Delisi Side Str. 3 pt 22, floor 5,
Tbilisi 0177
Georgia
Tel:
(995 32) 210 294 / 210 297
Fax: (995 32) 210 298
E-mail: intertrans@intertrans.ge
The main activities of the company : short
time cargo
transportation in the region;
5.
Tiflis City GIG Group
Chavchavadze Str. 62
Tbilisi 0162
Georgia
Tel: (995 32) 290 338 / 912 607,
Fax: (995 32) 916 278
E-mail: tiflisicity@gig.ge
Currently Tiflis City implement "Sun
City" project in Batumi. "Sun
City" is the most exclusive address in
Batumi for living,
entertainment and business purposes.
6.
Georgian Media Incorporated Holding
Kostava Str. 75 b
Tbilisi 0179
Georgia
Tel: (995 32) 334 471 / 338 811
Fax: (995 32) 333 187
E-mail: zaza@gmi.ge
6. MZE
TV
Kostava Str. 75 b
Tbilisi 0179
Georgia
Tel: (995 32) 212 111
E-mail: mze@mze.ge
7.
Rustavi-2
45, Vazha Pshavela ave.
Tbilisi
Georgia
Tel: (995 32) 322 271 / 322 371
Fax: (995 32) 250 031
E-mail: tv@rustavi2.com
(Broadcasting Company)
8.
Georgian Business Consulting Ltd
Faliashvili Str. 85
Tbilisi 0179
Georgia
Tel: (995 32) 227 471 / 942 133
Fax: (995 32) 227 505
E-mail: info@gbc.ge
9.
Globaltrans
Tsereteli ave 142
Tbilisi
Tel: (995 32) 355 952
Fax: (995 32) 355 952
10.Industria
Kiri
Mshvidoba Str. 70
Rustavi
Georgia
Tel.: (995 99) 922 175
E-mail: industria_kiri@posta.ge
11.Durnuki
Road Metal Factory
village Durnuki
Tetritsyaro region
Tel: (995 32) 320 900
Mobile: (995 77) 503 844
12.Orbi
Dumbadze str. 12
Tetritsyaro region
Georgia
Tel: (995 95) 298 084
E-mail: orbikaspi@mail.ru
ACTIVITIES
The
Company is involved in the following activities :
Subject
is a holding and management company for the group of
companies
whose members are engaged in a diversified field of activities which includes
the following : energy, logistics, heavy industry, building materials, media
and real estate.
GIG
Group has a diversified business portfolio with a clear focus on the energy
sector including the following:
Electricity
generation and trading: the group owns and operates thermal and hydropower
plants with a total installed capacity of 662 MW. A 300 MW coal fired power plant with modern
CFB combustion technology is currently under reconstruction. The group
furthermore has some 70 MW of hydro and wind energy facilities under planning
and development. Overall GIG accounts for some 20% market share in electricity
generation of Georgia. GIG and it’s subsidiaries are the largest electricity
trader in Georgia handling export/import, transit and swap transactions with
all of its neighbouring countries.
Coal
mining: GIG owns and operates the only coal mine in Georgia. With under license
reserves of more than 331 m tons Tkibuli coal mine development envisages rising
output up to 1 m tons p/y by 2020.
CNG
refuelling and natural gas trading: under its brand NEOGAS owns and operates a
large network of CNG refuelling stations across Georgia. Besides, GIG is involved in regional gas
trade and wholesale trading in Georgia. Preparatory works are underway to
explore and commercialize the abundant coal bed methane potential of our coal
deposits.
GIG
are also involved in commercial real estate, construction materials, beverages
and metal works.
The
largest subsidiaries and affiliated companies of GIG are Georgian International
Energy Corporation (GIEC), Mtkvari Energy, Saknakhshiri, CPower,Tiflis Group,
Globaltrans .
NACE
Code: 6420
Group
members import from Ukraine, China and Germany.
Group
members export to Bulgaria.
FACILITIES
The
Company has the following facilities :
5-storey
owned building comprising administrative office located at the heading
address.
REGISTERED OFFICE
Gazapkhuli
Street 18
Vake-Saburtalo
District
Tbilisi
0177
SPECIAL NOTE
You
enquired on: HOLDING GEORGIAN INDUSTRIAL GROUP LTD. Please note that the
correct name is as per heading.
Interviewed:
Nino Purtseladze (Chief Accountant).
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 65.08 |
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1 |
INR 89.85 |
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Euro |
1 |
INR 80.16 |
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GEL |
1 |
INR 26.70 |
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 : |
TRU |
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
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Promoters
/ Management background
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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.