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Report Date : |
18.08.2014 |
IDENTIFICATION DETAILS
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Name : |
TSETS ZAM PLAST LLC |
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Registered Office : |
Capital House, |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
28.07.2010 |
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Legal Form : |
Limited Liability
Company |
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Line of Business : |
Manufacturer of Pet Bottles for Mineral Water and Soft Drinks. |
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No. of Employees : |
816 (Apu JCS) 3,700 (Shunkhlai group) |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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 – June 01, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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Mongolia |
C1 |
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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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
MONGOLIA - ECONOMIC OVERVIEW
Mongolia's extensive mineral
deposits and attendant growth in mining-sector activities have transformed
Mongolia's economy, which traditionally has been dependent on herding and
agriculture. Mongolia's copper, gold, coal, molybdenum, fluorspar, uranium,
tin, and tungsten deposits, among others, have attracted foreign direct
investment. Soviet assistance, at its height one-third of GDP, disappeared
almost overnight in 1990 and 1991 at the time of the dismantlement of the USSR.
The following decade saw Mongolia endure both deep recession, because of
political inaction and natural disasters, as well as economic growth, because
of reform-embracing, free-market economics and extensive privatization of the
formerly state-run economy. The country opened a fledgling stock exchange in
1991. Mongolia joined the World Trade Organization in 1997 and seeks to expand
its participation in regional economic and trade regimes. Growth averaged
nearly 9% per year in 2004-08 largely because of high copper prices globally
and new gold production. By late 2008, Mongolia was hit hard by the global
financial crisis. Slower global economic growth hurt the country's exports,
notably copper, and slashed government revenues. As a result, Mongolia's real
economy contracted 1.3% in 2009. In early 2009, the International Monetary Fund
reached a $236 million Stand-by Arrangement with Mongolia and the country has
largely emerged from the crisis with better regulations and closer supervision.
The banking sector strengthened but weaknesses remain. In October 2009,
Mongolia passed long-awaited legislation on an investment agreement to develop
the Oyu Tolgoi mine, considered to be among the world's largest untapped
copper-gold deposits. Mongolia's ongoing dispute with a foreign investor over
Oyu Tolgoi, however, has called into question the attractiveness of Mongolia as
a destination for foreign direct investment. Negotiations to develop the
massive Tavan Tolgoi coal field also have stalled. The economy has grown more
than 10% per year since 2010, largely on the strength of commodity exports to
nearby countries and high government spending domestically. Mongolia's economy,
however, faces near-term economic risks from the government's loose fiscal and
monetary policies, which are contributing to high inflation, and from
uncertainties in foreign demand for Mongolian exports. Trade with China
represents more than half of Mongolia's total external trade - China receives
more than 90% of Mongolia's exports and is Mongolia's largest supplier.
Mongolia has relied on Russia for energy supplies, leaving it vulnerable to
price increases; in the first 11 months of 2013, Mongolia purchased 76% of its
gasoline and diesel fuel and a substantial amount of electric power from
Russia. A drop in foreign direct investment and a decrease in Chinese demand
for Mongolia's mineral exports are putting pressure on Mongolia's balance of
payments. Remittances from Mongolians working abroad, particularly in South
Korea, are significant.
|
Source
: CIA |
TSETS ZAM PLAST LLC (Correct)
TSETS ZAM PLAST (Requested)
Building : Capital House
Street : Chinggis Khaan Avenue 48/1
Area : Khan Uul District
Town : Ulaanbaatar 17040
Country : Mongolia
Telephone : (976 70) 072 001 / 074 001 / 073 333 / (976 11) 344 346 /
Mobile (976 91) 111 068 (Mr. Anand)
Fax : (976 70) 073 002
E-Mail : anand@apu.mn / info@shunkhlaigroup.mn
Website : www.shunkhlaigroup.mn
Also Known As : Tsets Zam Plast XXK / Tsets Zam Plast
Name Position
1. Batsaikhan Purev Chairman / President
2. P. Batkhishig Chief Executive Officer
3. Mr. Anand Manager (Apu JCS)
Total Employees : 816 (Apu JCS)
3,700 (Shunkhlai group)
No complaints have been heard regarding payments from local suppliers or banks.
Subject is subsidiary of Shunkhlai group, which is one of the biggest diversified holding companies that manage diverse business portfolios. The largest business lines in the portfolio are mining, consumer goods production and distribution, petroleum, oil and gas, medical service, information & communication technology and international trading. As one of the first private entities in Mongolia, Shunkhlai Group LLC aims to further strengthen existing business lines as well as to expand its portfolio in a both existing and new areas, including property, commodity trading, infrastructure, and information technology for purposes of enhancing our contribution to development of Mongolia.
We consider it is acceptable to deal with subject for MEDIUM amounts, however in view of the lack of financial information we recommend international suppliers exercise a degree of caution. Although it is normal accepted practice for international suppliers to deal on secured terms with Mongolian importers.
Trade risk assessment : Normal
NAME : TRADE AND DEVELOPMENT BANK OF MONGOLIA
Branch : Juulnchny Gudamj 7
Town : Ulaanbaatar 210646
Telephone : (976 11) 312 362 / 331 133
Fax : (976 11) 325 449
The Company also has an account with the following banks :
1. Golomt Bank of Mongolia
Main Branch
Bodi Tower, Sukhbaatar Square
Ulaanbaatar
Telephone : (976 11) 311 530
Fax : (976 11) 312 307
2. Khan Bank of Mongolia
Peace Avenue
P.O Box-185
Ulaanbaatar
Telephone : (976 11) 457 880
Fax : (976 11) 457 880
Private companies in Mongolia are not required to publish or disclose balance sheets. Balance sheets are not available from other sources, and the subject interviewed declined to give any financial information, which the company regards as strictly confidential.
The following financial information applies to Shunkhlai Group LLC (latest available) :
Sales Turnover : US DLRS 24,000,000 - 2006 - exact
: US DLRS 25,000,000 - 2007 - exact
: US DLRS 28,000,000 - 2008 - exact
: US DLRS 30,000,000 - 2009 – approx.
: not given - 2010
: US DLRS 48,000,000 - 2011 - exact
: US DLRS 60,000,000 - 2012 – approx.
Net Profit : Not Given
Financial year ends 31 December.
The following audited consolidated balance sheets as at 31 December of 2011 showed applies to APU JSC (latest available) :
31/12/2010 31/12/2011
(in TUGRIK)
ASSETS
Current assets
Cash and cash equivalents 5,075,303,352 19,144,943,329
Account receivables 7,851,860,372 18,056,641,157
Other receivables 929,776,222 1,634,064,512
Inventories 21,591,580,172 27,424,324,407
Deferred tax assets 62,696,686 323,681,725
Prepaid expenses 2,052,647,462 3,763,014,484
Total current assets 37,563,864,266 70,346,669,614
Non-current assets
Fixed assets 87,747,454,517 89,962,224,958
Accumulated Depreciation
of fixed assets (29,320,388,515) (35,992,441,679)
Other assets - 1,047,438,943
Accumulated depreciation
of other assets - (99,097,619)
Construction in progress 536,411,111 -
Intangible assets 4,410,854 2,139,884
Investment and other assets - 160,625,522
Total non-current assets 58,967,887,967 55,080,890,009
TOTAL ASSETS 96,531,752,233 125,427,559,623
LIABILITIES AND OWNER'S EQUITY
Liabilities
Accounts payable 2,856,415,271 3,368,827,990
Salaries payable 220,298,696 262,328,770
Income taxes payable 1,330,700,938 15,938,536
VAT payable 175,582,472 819,859,532
Other tax payable 1,307,095,122 3,652,049,986
Deferred tax liabilities 1,097,460,145 -
Health & social insurance
premium payable 2,179,094 887,669
Dividends payable - 2,731,052,000
Short term bank loan 12,152,740,004 23,738,290,000
Other payables 311,371,365 388,826,562
Total current liabilities 19,453,843,107 34,978,061,045
Long term liabilities
Long term loan 27,093,421,400 23,361,270,100
Total long term liabilities 27,093,421,400 23,361,270,100
Total liabilities 46,547,264,507 58,339,331,145
Owner's equity
Private equity 74,287,700 74,287,700
Shares in pocket (120,681) (120,681)
Amount of share capital 74,167,019 74,167,019
Revaluation reserves 14,357,150,116 14,349,230,672
Retained earnings 35,553,170,591 52,664,830,788
Reporting period - 20,078,340,957
Previous period 35,553,170,591 32,586,489,831
Total owner's equity 49,984,487,726 67,088,228,478
TOTAL LIABILITIES &
OWNER'S EQUITY 96,531,752,233 125,427,559,623
PROFIT AND LOSS ACCOUNT
Sales 122,197,298,036 222,712,227,870
Sales allowance & returns (65,129,648) (55,216,949)
Net sales 122,132,168,388 222,657,010,921
Cost of goods sold (85,726,659,747) (116,806,736,289)
Gross income 36,405,508,641 105,850,274,632
Payroll expenses (2,034,089,971) (2,479,824,678)
Health & social insurance
premium (257,253,616) (322,228,402)
Maintenance expense (142,940,549) (315,073,561)
Utility - (water, electricity
and heating) expenses (173,550,657 (221,023,979)
Rent expense (2,056,158,459) (2,282,113,222)
Official assignment expense (347,846,333) (495,730,618)
Raw material expense (251,503,577) (129,725,686)
Depreciation expense (759,597,184) (903,876,119)
Advertisement expense (217,333,008) (385,767,097)
Communication expense (116,641,969) (123,584,037)
Fuel and Petroleum expense (221,114,598) (208,192,016)
Gain on official tax expense - (58,686,644,911)
Interest expense (3,004,048,562) (3,421,396,702)
Other expenses (5,021,766,738) (4,513,482,661)
Operating expense (614,300,206) (1,372,085,014)
Total operating expenses (15,218,145,427) (75,860,748,703)
Non-operating income (loss) 21,187,363,214 29,989,525,929
Interest income (loss) (98,839,587) (14,446,549)
Realized currency exchange
gain (loss) 4,836,482,044 (3,850,673,999)
Other (109,814,559) 38,831,732
Total non-operating
income (loss) 4,627,827,898 (3,826,288,816)
Profit(Loss) before tax 25,815,191,112 26,163,237,113
Income tax expense (6,098,565,898) (6,084,896,157)
Profit after tax 19,716,625,214 20,078,340,956
Profit (loss) of
ordinary activity 19,716,625,214 20,078,340,956
Net profit 19,716,625,214 20,078,340,956
Sales Turnover : US DLRS 30,000,000 - 2006 - exact
: US DLRS 45,000,000 - 2007 - exact
: TUGRIK 53,799,017,000 - 2008 - exact *
: TUGRIK 86,866,689,000 - 2009 - exact
: TUGRIK 122,197,298,036 - 2010 – exact
: TUGRIK 222,712,227,870 - 2011 – exact
Net Profit : TUGRIK 4,682,820,000 - 2008 - exact
: TUGRIK 10,817,759,000 - 2009 - exact
: TUGRIK 19,716,625,214 - 2010 - exact
: TUGRIK 20,078,340,956 - 2011 - exact
* Sharp increase in sales turnover in 2008 was attributed to
Mongolian government's ban of all small factory producers of vodka
and alcoholic beverages after 16 deaths due to poor quality vodka
produced by small, non-standard alcohol producing factories.
Market capitalization : TUGRIK 42,938,290,600 (as of July 2009)
Financial year ends 31 December.
Date Started : 28 July 2010
History : The Subject was established in Ulaanbaatar on 28 July 2010.
Tax No. : 2679426
Capital : not given
Limited Liability Company with the following directors and sole shareholder :
Directors
1. Batsaikhan Purev
(Mongolian national)
2. P. Batkhishig
(Mongolian national)
Shareholder
Shunkhlai Group LLC
Capital House, 3rd and 4th floors
Chinggis Khan Avenue 48/1
Khan Uul District
Ulaanbaatar - 36
Telephone: (976 70) 073 333 / 073 001 / 073 003 / 073 004 / 074 004 /
Mobile (976 99) 102 422 / 111 530
Fax : (976 70) 073 002 / 074 444
E-Mail : info@shunkhlai.mn / shunkhlai@magicnet.mn
Personal
profile on Batsaikhan Purev :
Batsaikhan Purev, aged 45, is a non-executive Director of the Mongolian Mining Corporation LLC. He was appointed as a non-executive Director of the Mongolian Mining Corporation LLC on 16 September 2010. He is a representative of Shunkhlai Mining, a shareholder of the Company. He is a founder of Shunkhlai LLC, one of the first private companies in Mongolia and one of Mongolia’s largest petroleum companies. He has been the General Director of Shunkhlai LLC and Shunkhlai Group LLC, and an Executive Director of Shunkhlai Mining LLC since 1993. Mr. Purev was appointed as the Chairman and President of Shunkhlai Group LLC on 11 January 2012. He is a Chairman of APU Company, a company listed on the Mongolian Stock Exchange. Mr. Purev was awarded a bachelor’s degree in mechanical engineering by the Mongolian Technical University.
Subject is
a subsidiary of Shunkhlai Group LLC, which also includes the following
companies :
1. Hyundai Motors Mongolia LLC
Uildver Street 79, Uildver-1/17062
Khan-Uul District, 3rd Khoroo
Ulaanbaatar 17032
Telephone: (976 50) 111 212 / (976 88) 106 668
Fax : (976 50) 111 214
Est.:12 December 2009
Tax No.: 5327547
2. APU JSC
APU Building
Chinggis Khan Avenue 14
Khan-Uul District
P.O.Box No.: 17040
Ulaanbaatar-36
Telephone: (976 11) 344 347 / 344 346
Fax : (976 11) 343 063
Chairman : Batsaikhan Purev
Employees: 816
Est.:18 May 1992
C.R. No. : 9010001005
Tax No: 2702673
Capital : TUGRIK 67,088,228,479
3. KIA Motors Mongolia LLC
13th khoroo, Bayanzurkh District
Ulaanbaatar
Telephone: (976 50) 111 216
4. Mongolia Hyundai Automotive LLC
Enkhtaivan Avenue, 20th Khoroo,
Bayangol District
Ulaanbaatar
Telephone: (976 70) 181 863 / 181 862
Fax : (976 70) 181 863
E-Mail : info@mongolhyundai.mn
5. APU Trading LLC
Capital House
Chinggis Khan Avenue 48/1
Khan Uul District
Ulaanbaatar - 36
Telephone: (976 70) 071 001
Fax : (976 70) 072 004
Managing Director: P. Batchimeg
Est.: 18 December 2006
(Wholesale beverages and alcoholic products)
6. Shunkhlai Mining LLC
(Shunkhlai Mining)
7. NTS Ltd
8. Gobi Oil LLC
Formerly affiliated company of Shunkhlai Group LLC :
Mongol Post Bank
Kholboochdyn Street 4
P.O Box 874
Ulaanbaator 13
Telephone: (976 11) 310 103 / 311 270
Fax : (976 11) 328 501
The Company is involved in the following activities :
Manufacturer of pet bottles for mineral water and soft drinks.
Subjects capacity of over 80 Million 0.5-2.5 Litre Pet Bottles Per Year.
Using Italian Manufactured Pps-300 Equipment.
Subject supplies its products to Apu JSC.
NACE Code : 2222
Imports machinery from Italy.
Subject does not export, all sales are domestic.
The Company has the following facilities:
Owned premises comprising administrative offices located at the heading address as well as a manufacturing unit with storage facilities located elsewhere in Ulaanbaatar.
Chingeltei District
You enquired on : TSETS ZAM PLAST. Please note that subject is also known by this name. Subject's correct registered name is as per heading.
The telephone number given by you : (976 70) 073 001 incorrect. Please note that subject's correct administrative office telephone number is as per heading.
Interviewed : Mr. Anand (Manager (Apu JCS)).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.06 |
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1 |
Rs.101.84 |
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Euro |
1 |
Rs.81.56 |
INFORMATION DETAILS
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Analysis Done by
: |
RAS |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.