MIRA INFORM REPORT

 

 

Report Date :           

12.04.2012

 

IDENTIFICATION DETAILS

 

Name :

PRESTIGE SUPPLIES INC. LLC 

 

 

Registered Office :

Rokmon Building, 4th Floor, Office 407, Bayangol District, 2nd Khoroo, Ulaanbaatar

 

 

Country :

Mongolia

 

 

Date of Incorporation :

17.01.2011

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Trading as importers, wholesalers, retailers and distributors of tobacco, alcohol, perfume, confectionary, watch, sun glass and cosmetic products

 

 

No. of Employees :

12-35 (depending on the projects in hand)

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

TUGRIK 1,000,000,000

Status :

Satisfactory

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 – March 31st, 2012

 

Country Name

Previous Rating

                   (31.12.2011)                  

Current Rating

(31.03.2012)

Mongolia

c1

c1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


Company NAME

 

Prestige Supplies Inc. LLC

 

 

company ADDRESS

 

Building :           Rokmon Building, 4th Floor, Office 407

Area     :           Bayangol District, 2nd Khoroo

Town     :           Ulaanbaatar

Country  :          Mongolia

Telephone:        (976 70) 101 280 / Mobile (976 99) 105 259 / (976 99) 043 871 (Namit Kr. Choudhary) / (976 99)

000 701

Fax      :            (976 70) 101 280

E-Mail   :           namit@prestigesupplies.com  / info@prestigesupplies.com  / lukas@orientalme.com  / lukas_ogt@etisalat.blackberry.com

Website  :         www.prestigesupplies.com

 

Also known as : Prestige Supplies

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                                Position

 

1. Lukas Richard Coates            Managing Director

 

2. Michael Raj                           Operational Director

 

3. Namit Kumar Choudhary         Finance & Accounts Manager      

 

Total Employees :                      12-35 (depending on the projects in hand)

 

 

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 Mongolian importers.

 

Opinion on maximum credit : TUGRIK 1,000,000,000

 

Trade risk assessment: Normal

 

 

SIGNIFICANT CHANGES

PRESTIGE SUPPLIES TO OPEN NEW BORDER SHOP IN MONGOLIA

 

On 26 January 2009, (www.dfnionline.com): The Company is in negotiations to open its first duty-free store at the border between Mongolia and Russia.

 

Travel retailer Prestige Supplies is in the final phase of negotiations to open a new duty-free store at the Sukhbaatar railway station at the border between Mongolia and Russia. The new outlet will be the company’s sixth duty-free store in Mongolia, where it has been operating since November 2007.

 

Prestige Supplies now runs five duty-free stores in the country: a 64sq m (688sq ft) store at Zamiin Uud, on the border between Mongolia and China; a 50sq m (538sq ft) L’Écrin Duty Free departures shop (pictured) at Ulaanbaatar Chinggis Khaan International airport; two Mongol News Duty Free outlets, a 50sq m departures store and a 30sq m (322sq ft) arrivals shop; and a 25sq m (269sq ft) downtown diplomatic store next to the Attila Hotel in the Mongolian capital.

 

A Prestige Supplies spokesperson told DFNI online: “Our International Duty Free border store at Zamiin Uud sells tobacco products, liquor and confectionery. We work with all the leading companies in liquor and tobacco such as British American Tobacco, Shanghai Tobacco Group, Diageo, Villiger, Belvedere Duty Free and Campari. Cigarettes are our best-selling product, followed by liquor. Our airport shops sell all product categories including fashion, fragrances and watches. We have begun our operation in Mongolia and as the year continues we are looking for further expansion across the globe.”

 

TOBACCO SALES UP AT PRESTIGE SUPPLIES

On 16 July 2009, (www.dfnionline.com): The retailer has reported a 5% increase in cigarette sales so far this year compared with the same period in 2008.

 

Mongolian travel retailer Prestige Supplies has revealed cigarette sales are up by 5% so far this year compared with the same period in 2008. The retailer runs five duty-free stores in the country—one on the border with China, three at Ulaanbaatar Chinggis Khaan International airport and a downtown shop in the capital—and is in advanced negotiations to open a new duty-free shop at the Sükhbaatar railway station on the border between Mongolia and Russia. Cigarettes are its best-selling product.

 

A Prestige Supplies spokesperson told DFNI: “The category is performing well, with sales at present slightly higher than this time last year despite the global economic crisis.”

 

Prestige stocks a variety of cigarette brands in its shops including Chinese brands such as Lesser Panda, Furongwang, Yun Yan, Chunghwa and Double Happiness, and the Kent brand from British American Tobacco. “They are all available and meet demand from our customers,” said the spokesperson.

 

 

PRINCIPAL BANKERS

 

NAME     :         KHAN BANK OF MONGOLIA 

Branch   :          Peace Avenue

P.O. Box :         P.O Box-185

Town     :           Ulaanbaatar

Telephone:        (976 11) 457 880

Fax      :            (976 11) 457 880

 

The company also has an account with :

 

The company also has an account with the following banks:

 

1. Golomt Bank of Mongolia

   Bodi Tower, Sukhbaatar Square

   Ulaanbaatar

   Telephone: (976 11) 311 530

   Fax      : (976 11) 312 307

 

2. Trade and Development Bank of Mongolia

   Juulnchny Gudamj 7

   Ulaanbaatar 210646

   Telephone: (976 11) 312 362 / 331 133

   Fax      : (976 11) 325 449

 

 

FINANCIAL INFORMATION

 

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

 

Sales Turnover          : TUGRIK 35,000,000 - 2010 - exact

                        : TUGRIK 46,000,000 - 2011 - exact

                        : TUGRIK 12,000,000 - 2012 – exact *

 

Net Profit              : but stated to be 20% of the sales turnover

 

* 3 months results (January – March).

 

Working Capital : US DLRS 100,000

 

The following financial information applies to parent company Prestige Supplies Inc.:

 

Sales Turnover               : Dh 51,254,275 - 2011 - exact

 

Net Profit                       : Dh  4,328,663 - 2011 – exact

 

Total Capital Investment : US DLRS 50,000

 

Total Value of Stock Held : Dh 553,969

 

Financial year ends 31 December.

 

The following financial information applies to subject’s affiliated company, Oriental General Trading Inc:

 

Sales Turnover      : Dh 270,000,000 - 2005 - exact

                    : Dh 300,000,000 - 2006 - exact

                    : Dh 350,000,000 - 2007 - projected

 

Net Profit          : not given, but stated to be profitable

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started : 17 January 2011

 

History : The subject company was established in Mongolia on 17 January 2011, however its origins can be traced back to 2007.

 

Tax No.: 5469945 (issued date 21 April 2011)

Authorised Capital : US DLRS 100

 

Paid-Up Capital : US DLRS 100

 

Limited Liability Company with the following sole shareholder:

 

Prestige Supplies Inc. (frmly Afrolinks Trading Ltd)      100%

WD 04

Jebel Ali Free Zone RA 08

P.O. Box 17697

Dubai

UAE

Telephone: (971 4) 883 8224

Fax      : (971 4) 223 8225

Email    : info@prestigesupplies.com  

Managing Director : Anthony D’souza

Total Employees: 40

Principal Banker: Standard Chartered Bank

Est.: 1 August 2008 (Origins can be traced back to 11 April 2000)

Trade License No.: 2555

Shareholders: - Ying Yim Cheng               - 30%

              - Matthias Attila Paul Klute   – 25%

              - Anthony D’souza              - 25%      

              - Ho Man Herman Wai            - 20%

(Trading as wholesalers and distributors of tobacco products)

    

Affiliated company of the subject company :

 

Associated

 

1. Prestige Supplies Co. Ltd

   Moc Bal-Combodia Duty Free

   Supermarket

   Cambodia

 

2. Oriental General Trading Inc

   Jebel Ali Free Zone, Roundabout 12 (R/A 12)

   P.O. Box : 17432

   Dubai

   United Arab Emirates

   Telephone: (971 4) 883 7334 / Mobile (50) 844 8017

   Fax      : (971 4) 883 7335

   E-Mail   : avinash@orientalme.com / robin@orientalme.com

   Financial Manager: Robin Gomes (Indian national)

   Est.: 21 October 1998

   DCCI Membership No  : 51708

   Capital : Dh 37,000 (as of 2007)

   Shareholders:

-    Anthony D'Souza

-    Attil Kalout (German national)

3. Oriental Impex Inc.

   Jebel Ali Free Zone

   PO Box: 17432  

   Telephone: (971 4) 883 7334 

   Fax      : (971 4) 883 7335

   E-Mail: mail@orientalme.com

 

4. Fisher & Tobacco Corp.

   British Virgin Islands

 

5. Prestige Supplies Inc.

   British Virgin Islands

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Trading as importers, wholesalers, retailers and distributors of tobacco, alcohol, perfume, confectionary, watch, sun glass and cosmetic products.

 

Subject also operates Duty-Free stores.

 

NACE Code : 4635 / 4726 / 4617 / 4775 / 4777

 

Imports from Europe, the Netherlands, Italy, France, Russia, Singapore, UAE and Hong-Kong.

 

Subject does not export, all sales are domestic.

 

Subject has the following brands : West, Winston, Camel, Kent, Marlboro, Parliament, JackDaniels, Chivas Regal, Grey Goose, Absolt Vodka, Jim Beam, Martini, Bacardi, Ferrero Rocher, Toblerone, Snickers, Nestle, M&M’s, Nina Ricci, Hugo Boss, Kenzo, Versace, Dior, L’Oreal, DKNY, Aramis, Hermes, Burberry, Moschino, Rochas, Revlon,  and Bvlgari.  

 


FACILITIES

 

The Company has the following facilities :

 

Rented premises comprising administrative offices located at the heading address as well as 2 rented storage facilities located at Chingis-Khan Avenue, 2nd  Khoroo, Khal-Uul District, Ulaanbaatar (share premises with BLC LLC) and Songino Khairkhan District, Ulaanbaatar (share premises with UB Impeks LLC).

 

Subject has Duty Free shops in the following addresses :

 

- Two Retail outlets L’Ecrin Duty-Free (sq. m. 50) and News Duty-Free

  located at Chinggis Khaan International Airport (frmly Buyant-

  Ukhaa), Khan-Uul District, Ulaanbaatar 17120.

- Retail outlets located at Zamiin Uud (sq. m. 64) on the border

  between Mongolia and China,

- Retail outlet Ulaanbaatar Hotel, Sukhbaatar Square 14, Ulaanbaatar        

- Retail outlet Diplomatic Building, Chingiltei District, Ulaanbaatar

 

 

REGISTERED OFFICE

 

Rokmon Building, 4th Floor, Office 407

Bayangol District, 2nd Khoroo

Ulaanbaatar

 

 

SPECIAL NOTE

 

Interviewed: Namit Kumar Choudhary (Finance & Accounts Manager).

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.51.55

UK Pound

1

Rs.81.95

Euro

1

Rs.67.57

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

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 and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

 

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.