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MIRA INFORM REPORT
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Report No. : |
497434 |
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Report Date : |
17.03.2018 |
IDENTIFICATION DETAILS
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Name : |
BI EM SI GORGIA SHPS |
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Registered Office : |
A. Tsereteli Avenue 140, Didube-Chugureti
District Tbilisi 0119 |
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Country : |
Georgia |
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Financials (as on) : |
2017 [Summarized] |
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Date of Incorporation : |
14.07.2008 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Trading as importers, wholesalers and retailers of all types of construction and interior decoration materials such as heating and air condition systems, water and sewer systems, ceramic tiles, construction mixture, chemical additives paints, laminate flooring, railing, insulation, sanitary ware, roofing, bathtubs, bathroom furniture, bathroom accessories and children s furniture. |
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No. of Employees : |
1,100 |
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 3,080,000 |
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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
REPORT
CO. NAME: BI EM SI GORGIA SHPS (CORRECT)
BMG
GORGIA LTD (BI EM SI GORGIA SH PS) (REQUESTED)
ADDRESS
Street
: Sokhumi Street 10
Town
: Batumi 6002
Country
: Georgia
Telephone: (995 422) 272 771 / 275 872 / 217
689 / Mobile (995 595) 111 219 / (995 595) 909 990 (Zviad Merabshvili) / (995
591) 101 199 (Zviad Merabshvili)
Fax
: (995 422) 275 872
E-Mail
: info@gorgia.ge / sales@gorgia.ge / zviad@gorgia.ge /
zviad.merabishvili@gorgia.ge
Website
: www.gorgia.ge
Trading Styles : Gorgia Building & Tiling
Materials
Extended Name : Bi Em Si Gorgia Shazguduli
Pasukhismbgeblobis Sazagadoeba
English Translation : BMC Gorgia Ltd
Also known as : BMC Gorgia ShPS
SENIOR
COMPANY PERSONNEL
Name Position
1. Khvicha Papunidze Managing
Director
2. Zviad Merabshvili Head
of Finance Department
(based in Tbilisi)
3. Tamara Kagnidze Import Manager
4. Bichiko Deladze Head of Procurement Manager
5. Umigo Migeladze Senior Accountant
(based in Batumi)
Total Employees : 1,100
PAYMENTS
No complaints have been heard regarding
payments from local suppliers or banks.
We consider it is acceptable to deal with
subject for LARGE amounts, although it is normal accepted practice for
international suppliers to deal on secured terms with Georgian importers.
Opinion on maximum credit : LARI 3,080,000
Trade risk assessment : Normal
PRINCIPAL
BANKERS
Name
: TBC BANK JSC
Branch
: Konstantine Gamsakhurdia St 34
Town
: Batumi 6000
Telephone: (995 422) 230 356-8
Fax
: (995 422) 230 359
Subject also
has account with the following banks:
1. Bank of Georgia JSC
Davida Agmashenebeli Street 21
Batumi 6000
Telephone: (995 422) 241 091
Fax : (995 422) 241 091
2. Liberty Bank
Chavchavadze Street 39
Batumi 6000
Telephone: (995 422) 271 613
Fax : (995 422) 271 613
3. Procredit Bank JSC
Luka
Asatiani Street 18
Batumi 6000
Telephone: (995 422) 272 420
Fax : (995 422) 277 445
4. Pasha Bank Georgia JSC
Rustaveli Avenue 15
Tbilisi 0108
Telephone: (995 32) 226 5000
Fax : (995 32) 226 5000
5. Ziraat Bank-Tbilisi Branch
Agmashenebeli Avenue 148
Tbilisi 0164
Telephone: (995 32) 294 3714
Fax : (995 32) 294 3078
6. Isbank Georgia JSC
Agmashenebeli Avenue 140/B
Tbilisi
Telephone: (995 32) 231 0515
Fax : (995 32) 231 0515
Subject formerly had an account with :
1. Republic Bank
Kutaisi Street 4
Batumi
Telephone: (995 422) 279 480 / 279 481 / 279 482
Fax : (995 422) 279 480
2. PrivatBank TAO
Asatiani Street 10
Batumi
FINANCIAL
INFORMATION
Private companies in Georgia are not required
to publish or
disclose balance sheets. However, the subject
interviewed offered
the following information :
Sales Turnover :
LARI 5,000,000 - 2008 - exact *
:
LARI 31,000,000 - 2009 - exact
: LARI
41,200,000 – 2010 – exact
: LARI
53,713,348 – 2011 – exact
: LARI
48,036,333 – 2012 – exact
: LARI
50,000,000 - 2013 – exact
: LARI
71,000,000 – 2014 – exact
: LARI
95,000,000 – 2015 – exact
: LARI 127,500,000 – 2016 – exact
: LARI 154,000,000 – 2017 – exact
Net Profit :
LARI 700,000 – 2008 – exact *
: LARI
4,000,000 – 2009 – exact
: LARI 4,000,000 –
2010 – exact
: LARI
6,500,000 – 2011 – exact
: LARI
10,000,000 – 2012 – exact
: LARI
10,000,000 – 2013 – exact
: LARI
15,000,000 – 2014 – exact
: LARI
4,800,000 – 2015 – exact
: LARI
12,000,000 – 2016 – exact
:
LARI 14,000,000 – 2017 – exact
* Projected increase in sales turnover in
2014 is due to favourable market conditions and expansion of the business.
Financial year ends 31 December.
LEGAL
STATUS AND HISTORY
Date Started : 14 July 2008
History: The subject company was established
in Batumi on 14 July
2008 to take over operations of Gorgia ShPS
(ID Code: 245442374), which was operating since 23 January 2004. Initially,
subject’s shareholding structure was as following: Rezo Gorgoshadze (100%)
(Georgian national / Personal No.: 61006018278). In 2016, subject’s
shareholding structure changed to the present.
ID Code : 245621288
Authorised Capital : LARI 200
Paid up Capital : LARI 200
Shazguduli Pasukhismbgeblobis Sazagadoeba
(limited liability company) with the following director and sole shareholder :
Director
Khvicha Papunidze
(Georgian national / Personal No.:
61006011559)
Shareholder Percentage
Gia Gorgoshadze 100%
(Georgian national / Personal No.:
61003000277 /
Son of Mr. Rezo Gorgoshadze)
Affiliated company of BMC Gorgia ShPS :
Associate
Natura ShPS
Batumi 6000
As matter of interest the father of Mr. Gia
Gorgoshadze, Mr. Rezo Gorgoshadze has interest in the following companies:
1. Anta Developmenti ShPS (formerly Gorgia
Motorsi ShPS)
Pridon Khalvashi Avenue 20
Batumi
Managing Director: Khvicha Papunidze
Est.: 15/09/2004
C.R.
No. : 04/05/b-321
ID
Code: 248381709
Sole
Shareholder:
- Rezo Gorgoshadze
2. Gorgia Metal Yapi
Istanbul
Turkey
3. Aviva Invest ShPS
Tseretli Avenue 140
Didube-Chughureti District
Managing Director: Gia Gorgoshadze
Est.: 11/04/2011
ID
Code: 401957673
Sole
Shareholder: Rezo Gorgoshadze
Subject’s former affiliated company:
1. Gonio-G ShPS
Sukhumi
Avenue 10
Batumi
Est.: 22 August 2006
C.R.
No.: 01/04-1767
Tax
No.: 245442356
Sole
shareholder : Rezo Gorgoshadze
(Georgian national /
Personal No.: 61006018278)
Gonio-G ShPS was established in Georgia on 22 August 2006 to be
Sikas official distributor. Gonio-G ShPS is currently a dormant
and
under the process of liquidation.
2. Gorgia ShPS
Sokhumi Street 2
Batumi 6002
Telephone: (995 222) 75689 / 31097 / Mobile (995 77) 462 140
Fax : (995 222) 75689 / 75872 / 31057
Est.: 23 January 2004
C.R.
No. : 01/04-1768, Batumi Town Court
Tax
Code : 245442374
Authorised Capital : US DLRS 1,200,000
Sole
shareholder : George Rezoyevich Gorgoshadze
100%
(aka Gia Gorgoshadze)
The
above company was established in Georgia on 23 January 2004 on
the
basis of a proprietorship business owned by George Gorgoshadze
operating since 1998. Gorgia ShPS ceased to operate in July 2008.
Its
assets and operations were transferred to its affiliated
company BMC Gorgia ShPS. Gorgia ShPS is currently a dormant
company and is under the process of liquidation.
ACTIVITIES
The company
is involved in the following activities:
Trading as importers, wholesalers and retailers of all types of construction and interior decoration materials such as heating and air condition systems, water and sewer systems, ceramic tiles, construction mixture, chemical additives paints, laminate flooring, railing, insulation, sanitary ware, roofing, bathtubs, bathroom furniture, bathroom accessories and children s furniture.
Until 2014, subject was engaged in
manufacturing of PPRC and PE pipes for sewage and water supply systems.
NACE Code: 2221 / 4120 / 4333 / 4334 / 4339
Imports from Turkey, Italy, China, Germany,
Belgium, South Korea, Vietnam, Ukraine, Spain, India and Russia.
Re-exports to Armenia and Azerbaijan.
Distributors for Onduline, Henkel, Genc, Baxi
Baymak, Marazzi, Du Pont, Standox, Askaynak, Marshall, Sika, Seranit, Kerama
Marazzi,
Kutahya Seramik, ECE Banyo, Duravit, AKG
Gazbeton, Giacomini,
Ecoflam, Radiatori, E.C.A, Thermaflex and
CBS.
FACILITIES
The Company has the following facilities :
Rented office premises, a manufacturing unit
and storage facilities located at the heading address as well as 3 showrooms
located elsewhere in Batumi and two rented retail outlets (9,000 sq. m) located
in Tbilisi, 1 retail outlet in Kutaisi, 1 retail outlet in Zugdidi, 1 retail
outlet in Telavi and 1 retail outlet in Marneuli (see 'Branch Offices' below).
Subject formerly had central warehouse
located at:
Chikvaidze Street 1
Batumi.
(41,000 sq. m.)
Subject formerly used the following telephone
number:
Telephone: (995 422) 275 689
REGISTERED
OFFICE
A. Tsereteli Avenue 140
Didube-Chugureti District
Tbilisi 0119
Until 2016,
subject’s registered address was:
Sokhumi Street 10
Batumi 6002
BRANCH
OFFICES
1. Tsereteli Avenue 140
Tbilisi 0119
Telephone: (995 32) 235 6520 / 235
6521 / (995 599) 111 219
Fax : (995 32) 235 6521
2. Chavchavadze Street 8/4
Kutaisi
Telephone: (995 43) 123 5353
Fax : (995 43) 123 5353
3. Showroom “Gorgia”
Sokhumi Street 2
Batumi
4. Showroom “Gorgia” & Storage Facilities
Chikvaidze Street 1
Batumi
5. Showroom “Gorgia”
Abuselidze Street 27
Batumi
6. Zugdidi Trade Center of Rukhi
Zugdidi
Samegrelo-Zemo Svaneti Region
7. Rustaveli Street 74
Marneuli 3000
SPECIAL
NOTE
You enquired on: BMG GORGIA LTD (BI EM SI
GORGIA SH PS). Please note that the correct name is as per heading.
Interviewed: Zviad Merabshvili (Head of
Finance Department).
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 64.87 |
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1 |
INR 90.49 |
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Euro |
1 |
INR 79.91 |
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GEL [LARI] |
1 |
INR 26.61 |
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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VAR |
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Report Prepared
by : |
TPT |
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.