MIRA INFORM REPORT

Report No. :	509875
Report Date :	21.05.2018

IDENTIFICATION DETAILS

Name :	MONTAZH JORJIA SHPS
Registered Office :	Papashvili Street 19, Vake-Saburtalo District Tbilisi 0131
Country :	Georgia
Financials (as on) :	2017 (Summarized)
Date of Incorporation :	02.07.2008
Legal Form :	Limited Liability Company
Line of Business :	· Subject provides the following services: montage, supervise, technical support, testing commissioning, systems integration, consulting and exploitation. · Trading as importers and distributors of electricity, fire alarm, video surveillance and building management (BMS) systems.
No. of Employees :	120

RATING & COMMENTS

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

MIRA’s Rating :

B

Credit Rating	Explanation	Rating Comments
B	Medium Risk	Business dealings permissible on a regular monitoring basis

Maximum Credit Limit :	LARI 120,000
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 (30.09.2017)	Current Rating (31.12.2017)
Georgia	C1	C1

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

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.

Source : CIA

Company name

Montazh Jorjia ShPS (Correct)

MONTAGE GEORGIA LLC (Requested)

ADDRESS

Street : Papashvili Street 19

Area : Vake-Saburtalo District

Town : Tbilisi 0131

Country : Georgia

Telephone : (995 32) 250 5020 / Mobile (995 599) 393 397 (Managing Director)

Fax : (995 32) 250 5020

E-Mail : info@montage.ge

Website : www.montage.ge

Extended Name : Montazh Jorjia Shazguduli Pasukhismbgeblobis Sazagadoeba

English Translation : Montage Georgia LLC

Also known as : Montage Georgia Ltd

SENIOR COMPANY PERSONNEL

Name Position

Davit Kakhiani Managing Director

Total Employees : 120

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 Georgian importers.

Opinion on maximum credit : LARI 120,000

Trade risk assessment: Normal

PRINCIPAL BANKERS

NAME : BANK OF GEORGIA JSC

Branch : Gagarin Street 29A

Town : Tbilisi 0160

Telephone : (995 32) 244 4444

Fax : (995 32) 244 4444

The company also has an account with :

TBC Bank JSC

Marjanishvili Street 7

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 17,000,000 - 2015 - exact

: LARI 12,381,147 - 2016 – exact

: LARI 6,013,602 – 2017 – exact *

: LARI 20,000,000 – 2018 – projected

Net Profit : LARI 960,385 – 2017 – exact

* Decrease in sales turnover in 2017 was due to unfavourable market conditions.

Financial year ends 31 December.

The following financial information applies to Sakkabeli SS:

Sales Turnover : LARI 17,320,000 - 2010 - exact

: LARI 16,159,000 - 2011 – exact

: LARI 13,435,829 - 2012 – exact

: LARI 17,320,000 - 2013 – exact

: LARI 16,520,000 – 2014 – exact

: LARI 19,709,000 – 2015 – exact

: LARI 22,000,000 – 2016 – exact

: LARI 22,543,000 – 2017 – exact

: LARI 7,000,000 – 2018 – exact *

: LARI 26,000,000 – 2018 – projected

Net Profit : LARI 700,000 - 2010 - exact

: LARI 508,000 - 2011 – exact

: LARI 120,000 - 2012 - exact

: LARI 64,000 - 2013 - exact

: LARI 27,000 – 2014 – exact

: LARI 798,088 – 2015 – exact

: LARI 1,000,000 – 2016 – exact

: LARI 1,500,000 – 2017 – exact

Total Value of Stock Held : LARI 6,300,000 (as of January 2018)

* 3 months results (January – March).

Financial year ends 31 December.

LEGAL STATUS AND HISTORY

Date Started : : 2 July 2008

History : The subject company was established in Tbilisi on 2 July 2008.

ID Code : 205258335

Authorised Capital : LARI 200

Paid-Up Capital : LARI 200

Shazguduli Pasukhismbgeblobis Sazagadoeba (limited liability company) ShPS) with the following director and sole shareholder :

Director

Davit Kakhiani

(Georgian national / Personnel No.: 01006007920)

Shareholder Percentage

Davit Kakhiani 100%

(Georgian national / Personnel No.: 01006007920)

Affiliated company of the subject company :

Subsidiary

Evromontazhi ShPS

Didube- Chughureti District

Tbilisi

Managing Director: Giorgi Goshkhoteliani

Est.: 4 December 2013

ID Code: 401991109

Shareholders:

- Montazh Jorjia ShPS 49%

- Sakkabeli SS 51%

Gamrekeli Street 19, Office 414

Vake-Saburtalo District

Tbilisi 0179

Chairman: Edisher Mamaladze

Est.: 13 July 2006

C.R. No. : 32/5-11

ID Code : 230026888

Capital : LARI 10,000,000

Shareholders:

- Edisher Mamaladze 45%

- Bezhan Samkharadze 40%

- Nestor Lutidze 10%

- Eka Makharadze 5%

ACTIVITIES

The Company is involved in the following activities :

Subject is an electrical management company.

Subject provides the following services: montage, supervise, technical support, testing commissioning, systems integration, consulting and exploitation.

Trading as importers and distributors of electricity, fire alarm, video surveillance and building management (BMS) systems.

NACE Code: 4690 / 7490

Imports from Europe, France, Poland, Spain, China and Turkey.

Exports to Tajikistan.

Distributors for ABB, Honeywell, Low Current System and Schneider Electric.

Subject closely cooperates with the following company:

M.J.M ShPS

J.Papashvili Street 19 

Didube-Chughureti District

Tbilisi

Managing Director: Paata Gogishvili

Est.: 03/02/2015

ID Code: 402009651

Sole Shareholder:

- Paata Gogishvili

FACILITIES

The Company has the following facilities :

1,000 sq. m. owned premises comprising administrative offices and storage facilities located at the heading address as well as a branch office located elsewhere in Tbilisi (see 'Branch Offices' below).

REGISTERED OFFICE

Ex Training Experimental farm of Dighomi

Didube-Chughureti District

Tbilisi 0131

BRANCH OFFICES

Storage Facilities

Papashvili Street 17

Vake-Saburtalo District

Tbilisi

SPECIAL NOTE

You enquired on : MONTAGE GEORGIA LLC. Please note that this name applies to an English translation of the subject’s name. Subject’s correct registered name is as per heading.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 67.95
UK Pound	1	INR 91.87
Euro	1	INR 80.27
GEL	1	INR 27.35

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

INFORMATION DETAILS

Analysis Done by :	VAR
Report Prepared by :	DNS

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.