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MIRA INFORM REPORT
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Report No. : |
510883 |
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Report Date : |
30.05.2018 |
IDENTIFICATION DETAILS
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Name : |
HEM LLC |
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Registered Office : |
M. Khorenatsi
Street 2/25 (aka Horenaci Street), Yerevan 0053 |
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Country : |
Armenia |
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Date of Incorporation : |
10.10.2002 |
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Com. Reg. No.: |
286.110.04712 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Trading as
importers and distributors of diesel generators, power transformers, cables
and lighting equipment. |
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No. of Employees : |
20 (Permanent) 60 (Casual) |
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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Status : |
Recently Commenced Operation |
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Payment Behaviour : |
Unknown |
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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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Armenia |
B2 |
B2 |
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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 |
ARMENIA - ECONOMIC OVERVIEW
Under the old Soviet central planning system, Armenia developed a modern industrial sector, supplying machine tools, textiles, and other manufactured goods to sister republics, in exchange for raw materials and energy. Armenia has since switched to small-scale agriculture and away from the large agro industrial complexes of the Soviet era. Armenia has only two open trade borders - Iran and Georgia - because its borders with Azerbaijan and Turkey have been closed since 1991 and 1993, respectively, as a result of Armenia's ongoing conflict with Azerbaijan over the separatist Nagorno-Karabakh region.
Armenia joined the World Trade Organization in January 2003. The government has made some improvements in tax and customs administration in recent years, but anti-corruption measures have been largely ineffective. Armenia will need to pursue additional economic reforms and strengthen the rule of law in order to raise its economic growth and improve economic competitiveness and employment opportunities, especially given its economic isolation from Turkey and Azerbaijan.
Armenia's geographic isolation, a narrow export base, and pervasive monopolies in important business sectors have made it particularly vulnerable to volatility in the global commodity markets and the economic challenges in Russia. Armenia is particularly dependent on Russian commercial and governmental support, as most key Armenian infrastructure is Russian-owned and/or managed, especially in the energy sector. Remittances from expatriates working in Russia are equivalent to about 12-14% of GDP. Armenia joined the Russia-led Eurasian Economic Union in January 2015, but has remained interested in pursuing closer ties with the EU as well, signing Comprehensive and Enhanced Partnership Agreement with the EU in November 2017. Armenia’s rising government debt is leading Yerevan to tighten its fiscal policies – the amount is approaching the debt to GDP ratio threshold set by national legislation.
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Source
: CIA |
NOTE
The subject has recently
commenced operations and has no financial or payment track records, no credit limit could be
recommended.
COMPANY NAME
HEM LLC (CORRECT)
OOO GEM (OOO HEM) (REQUESTED)
ADDRESS
Street : Artsakhi Avenue 69A
Area : Erebuni District
Town : Yerevan 0053
Country : Armenia
Mobile : (374 55) 504 002 (Managing Director) /
(374 55) 504 002 (Commercial Director)
E-Mail
: info@hemon.am
Website
: www.hemon.am
Extended Name
: HEM Limited Liability Company
Also known As : GEM OOO
SENIOR COMPANY PERSONNEL
Name Position
1. Marina
Ter-Samvelyan Managing Director
2. Arman
Esayan Commercial Director
3. Vladimir
Ayrapetyan Procurement Manager
Total Employees : 20 (Permanent)
60 (Casual)
PAYMENTS
No trade
experience of payments is available.
Subject was
incorporated on 10 October 2002 and commenced operations in January 2017.
Opinion on maximum
credit : As the subject has recently commenced
operations and has
no financial or payment track record, we recommend
dealing on fully
secured terms.
Trade risk
assessment: High
It is normal
accepted practice for international suppliers to deal on secured terms with
Armenian importers.
PRINCIPAL BANKERS
NAME : AMERIABANK CJSC
Branch : Vazgen Sargsyan Street 2
Town : Yerevan 0010
Telephone: (374
10) 561 111
Fax : (374 10) 561 111
FINANCIAL INFORMATION
As the Company has
only recently commenced operations, relevant financial information is not
available. However, the subject interviewed offered the following information :
Sales
Turnover : DRAM 10,000,000 -
2017 – exact *
Net Profit : DRAM 2,986,382 - 2017 – exact
Value of current
contracts : DRAM 775,883,835 (as of May 2018)
Total Value of
Stock Held : DRAM 45,000,000 (as of May 2018)
* First year of
operations (January – December).
Financial year
ends 31 December.
LEGAL STATUS AND HISTORY
Date Started : 10
October 2002
History : The subject company was established in Yerevan on 10 October
2002 and commenced operations in January 2017. In 2017 subject took assets and
operations of ceased trading Hatukelectramontage OJSC. Initially, subject’s
shareholding structure was as following: Arman Esayan (100%). On 20 July 2017,
subject’s shareholding structure changed to the present.
C.R. No. :
286.110.04712
Tax No.: 02564574
Authorised Capital
: DRAM 50,000
Paid-Up Capital :
DRAM 50,000
Limited Liability Company with the following sole shareholder :
Marina
Ter-Samvelyan 100%
Affiliated companies
of the subject company :
Subsidiary
HEM Georgia LLC
Georgia
Former Associate
Hatukelectramontage
OJSC
Yerevan
ACTIVITIES
The Company is
involved in the following activities :
Trading as
importers and distributors of diesel generators, power transformers, cables and
lighting equipment.
Subject provides
maintenance and electrical installation services.
NACE Code: 4690
Imports from USA,
France, Slovenia, Italy, Spain, Germany, Czech Republic, Georgia, Ukraine,
Serbia and South Korea.
Subject does not
export, all sales are domestic.
FACILITIES
The Company has
the following facilities:
6,800 sq. m. rented premises comprising administrative offices,
production sites and storage facilities located at the heading.
REGISTERED OFFICE
M. Khorenatsi
Street 2/25 (aka Horenaci Street)
Yerevan 0053
SPECIAL NOTE
You enquired on : OOO GEM (OOO HEM). Please note
that the correct name is as per heading.
The address which you provided: M HORENACI 2/25, 0053 applies to
subject's registered office address. Please note that subject's administrative
office address is as per heading.
Interviewed: Arman Esayan (Commercial Director).
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 67.82 |
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1 |
INR 90.17 |
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Euro |
1 |
INR 78.70 |
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AMD |
1 |
INR 0.14 |
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 : |
NIT |
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
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Litigation
against the subject
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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.