MIRA INFORM REPORT

 

 

Report Date :

06.06.2012

 

IDENTIFICATION DETAILS

 

Name :

MONGOLIAN STAR MELCHERS CO LTD

 

 

Registered Office :

Mongolian Star Melchers Co Ltd Building, Chinggis Avenue 62, Industrial Zone, Uildveriin Bus 17070, 3rd Khoroo, Khan, Uul District, Ulaanbaatar

 

 

Country :

Mongolia

 

 

Date of Incorporation :

29.10.1998

 

 

Com. Reg. No.:

2560526

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Importers, Distributors, Wholesalers and Retailers of Mercedes Benz automobiles, building and construction tools, mining and safety equipment as well as cosmetic products, consumer goods, alcoholic beverages, electrical generators and compressors.

 

 

No. of Employees :

320

 

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

 

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

 

Mongolian Star Melchers Co Ltd

 

 

company ADDRESS

 

Building             : Mongolian Star Melchers Co Ltd Building

Street                           : Chinggis Avenue 62

Area                 : Industrial Zone, Uildveriin Bus 17070, 3rd Khoroo, Khan-Uul

                        District

Town                 : Ulaanbaatar

Country             : Mongolia

Telephone         : (976 11) 318 139 / 342 166 / (976 70) 148 141 / (976 70) 143 548 / (976 70) 143 549 / (976 70)

148 138 / Mobile (976 99) 046 641 (Ms. Otgonbayar Eudsuren) / (976 99) 114 438 / (976 99) 094 482 / (976 99) 282 452

Fax                   : (976 11) 342 175

E-Mail               : laurenz@msmco.net  / david@msmco.net  / khandsuren@msmco.net  /

otgonbayar@msmco.net

Website            : www.msm.mn

 

Shortform Name : MSM

 

Also known as : Mongolian Star Melchers LLC / Mongolian Star Melchers XXK

 

 

SENIOR COMPANY PERSONNEL

 

Name                                      Position

1. Laurenz Melchers                   Chief Executive Officer

2. David Reiner                          Chief Financial Officer

3. Bolorma Suren (Mrs)              Chief Operating Officer

4. Ms. Otgonbayar Eudsuren      Financial & Audit Director

5. Ms. Khandsuren Chatrabal     Chief Accountant

 

Total Employees : 320

 

 

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.

 

Trade risk assessment : Normal

 

 

SIGNIFICANT CHANGES

 

CREDIT TO FINANCE CONSTRUCTION OF MAJOR NEW FACILITY IN ULAANBAATAR.

 

23 October 2008.

 

The EBRD is providing a $6 million credit to Mongolian Star Melchers

Ltd to help boost the efficiency and competitive position of this

leading distribution network company. The credit will help finance

the construction of a major new facility on the outskirts of the

capital, Ulaanbaatar, giving the private group the scope to maintain

and then increase its market share in the near future.

 

Mongolian Star Melchers was founded in 1998, mainly as a distribution

network for automotive sales and services, but has quickly grown and

diversified into a major business to include heavy duty truck sales

and services, consumer goods and health care distribution, mining and

construction equipment supply and services.

 

The new 9,000 m2 mixed-use facility is located on the main road

connecting the center of Ulaanbaatar with the international airport

and will include office space, a vehicle showroom, a mining and industrial tool supply center, a distribution warehouse complex and

workshop service areas for passenger cars and heavy duty trucks.

 

 

PRINCIPAL BANKERS

 

NAME                : GOLOMT BANK OF MONGOLIA

Branch               : Bodi Tower, Sukhbaatar Square

Town                 : Ulaanbaatar

Telephone         : (976 11) 311 530

Fax                   : (976 11) 312 307

 

The company also has an account with the following banks :

 

1. Trade and Development Bank Mongolia Ltd

   Juulnchny Gudamj 7

   Ulaanbaatar 210646

   Telephone: (976 11) 312 362 / 331 133

   Fax      : (976 11) 325 449

 

2. Khan Bank of Mongolia

   Peace Avenue

   Ulaanbaatar

   Telephone: (976 11) 457 880

   Fax      : (976 11) 457 880

 

3. Khas Bank

   Sukhbaatar district

   Ulaanbaatar 14200

   Telephone: (976 11) 318 185

   Fax      : (976 11) 328 701

 

 

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         : US DLRS  1,500,000 - 2000 - exact

                    : US DLRS  2,500,000 - 2001 - exact

                    : US DLRS  4,750,000 - 2002 - exact

                    : US DLRS  5,500,000 - 2003 - exact

                    : US DLRS  6,500,000 - 2003 - approx

                    : US DLRS  7,000,000 - 2004 - exact

                    : US DLRS 10,000,000 - 2005 - exact

                    : US DLRS 15,000,000 - 2006 - exact

                    : US DLRS 21,000,000 - 2007 - exact

                    : US DLRS 25,000,000 - 2008 - exact

                    : US DLRS 19,563,992 - 2009 - exact

                    : US DLRS 30,783,404 - 2010 - exact

                    : US DLRS 55,426,208 - 2011 - exact

 

Net Profit          : US DLRS  1,606,261 - 2009 - exact

                        : US DLRS  3,888,188 - 2010 - exact

                        : US DLRS  4,989,293 - 2011 – exact

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started :                29 October 1998

 

C.R. No. :                      2560526

 

Authorized Capital :        US DLRS 185,000

Paid up Capital :            US DLRS 185,000

 


Limited Liability Company with the following shareholders :

 

   Shareholders                         Percentage

 

1. Laurenz Melchers                   50%

   (German national)        

 

2. David Reiner                           25%

   (USA national)

              

3. Bolorma Suren (Mrs)               25%

   (Mongolian national)

 

Personal Profile on Laurenz Melchers :

 

Laurenz Melchers is a cofounder of Mongolian Star Melchers Company

(MSM). He and his family resides in Mongolia since 1997. He holds a

B.Sc. from the University of Massachusetts.

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Trading as importers, distributors, wholesalers and retailers of Mercedes Benz automobiles, building and construction tools, mining and safety equipment as well as cosmetic products, consumer goods, alcoholic beverages, electrical generators and compressors.

 

Subject operates through the following four divisions :

 

- Mining & construction supply

- Automotive retail and service

- Consumer goods distribution

- Health care & hospital supplies

 

Subject also provides after-sale services.

 

NACE Code : 4614 / 4663 / 3312 / 4645 / 4639 

 

Imports from Germany, Switzerland, Belgium, Australia, Russia, South

Korea, Japan, China and USA.

 

Subject does not export, all sales are domestic.

 

Sole distributor in Mongolia for Daimler Chrysler, Mercedes-Benz,

Mitsubishi Motors, Jeep, Dodge, Truck, Bosch Tools, Atlas Copco, SC Johnson, ESSO, Hennessy, Kimberly Clark, Henkel and Johnson and Johnson products.


Awards :

 

- The Mongolian Chamber of Trade and Industry consistently honors MSM

  for its contribution to the economic development of Mongolia and

  has continued to award MSM the "Top 100 Company" title since 2001.

- In 2005 the company also received an award of "The best service

  provider with excellent team work".

 

 

FACILITIES

 

The Company has the following facilities :

 

Owned office premises, a showroom and storage facilities located at

the heading address.

 

Until July 2010 subject was located at :

 

Government Auto Depot No 1, MSM Building

Ikh Toiroo Street, 6th-Khoroo, Chingeltei District

P.O. Box :  154

Ulaanbaatar 211213

Telephone         : (976 11) 318 138 / 318 139

Fax                   : (976 11) 323 548

 

 

REGISTERED OFFICE

 

Mongolian Star Melchers Co Ltd Building

Chinggis Avenue 62

Industrial Zone, Uildveriin Bus 17070, 3rd Khoroo, Khan-Uul District

Ulaanbaatar

 

 

SPECIAL NOTE

 

The address which you provided: Chingel Tei District, Chingel Tei District, Msm Company Building, Ulaanbaatar applies to subject's former address. Please note that subject's current administrative office address is as per heading.

 

The telephone and fax numbers which you provided: 976 11 318 138 / 976 11 323 548 has been changed. Please note that subject's current telephone and fax numbers are as per heading.

 

Interviewed: Ms. Otgonbayar Eudsuren (Financial & Audit Director).

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.56

UK Pound

1

Rs.85.52

Euro

1

Rs.69.50

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.