MIRA INFORM REPORT

 

 

Report Date :

19.08.2014              

 

IDENTIFICATION DETAILS

 

Name :

BOSA IMPEX LLC

 

 

Registered Office :

Amarsanaa Street, Orkhon-1, Bayangol District, P.O. Box No.: 16040, Ulaanbaatar

 

 

Country :

Mongolia

 

 

Date of Incorporation :

28.08.2003

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Trading, Importers and Wholesalers of Foodstuff Including Confectionary Products, Edible Oil, Pickles and Olives.

 

 

No. of Employees :

62 (Subject)

600 (Group)

 

 

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 – June 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Mongolia

C1

B2

 

Risk Category

ECGC

Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

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


Company Name

 

BOSA IMPEX LLC (CORRECT)

 

BOSA IMPEX CO LTD BOCA HMIIEKC JITI (REQUESTED)

 

                 

ADDRESS

 

Street               : Amarsanaa Street, Orkhon-1

 

Area                 : Bayangol District

 

P.O. Box No.     : 16040

Town                 : Ulaanbaatar

Country             : Mongolia

 

Telephone          : (976 11) 361 531 / 365 668 / 365 608 / Mobiles (976 99)

                        113 226 (Angarag Batjargal) / (976 99) 054 217

                        (Oyungerel Sundui) / (976 99) 059 780 (Anar)

Fax                   : (976 11) 301 487

E-Mail               : bosa_co@mongolnet.mn / angarag@bosa-impex.mn /    oyungerel@bosa-impex.mn

Website            : www.bosa-impex.mn

 

Also Known As : Bosa Impex CO. LTD / Bosa Impex XXK

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                                             Position

 

1. Tsegmed Batbayar                                         President

 

2. Tserendorch Odsuren                                     Vice President

 

3. Angarag Batjargal (Ms)                                   Chief Executive Officer

 

4. Gereltsetseg Natsagdorj                                 Head of Sales &

                                                                        Marketing Devision

 

5. Oyungerel Sundui                                           Import Manager

 

6. Mr Anar                                                         Import & Export Officer

 

Total Employees :                                              62 (Subject)

                                                                        600 (Group)

 

PAYMENTS

 

No complaints have been heard regarding payments from local suppliers or banks.

 

Subject is a member of a Bosa Holding LLC, which is one of the primary private enterprises in Mongolia and its core duty is to provide aggregated policy and management to its subsidiary companies that operate in different types of business sectors including foreign and domestic trade, alarm and security services, food product production, procurement of general merchandise, transportation, office lease service and mobile camp services, construction and construction materials trade. BOSA Holding LLC has 7 subsidiary companies and 1 NGO and total of 600 employees.

 

We consider it is acceptable to deal with subject for MEDIUM amounts, although it is normal accepted practice for international suppliers to deal on secured terms with Mongolian importers.

 

Trade risk assessment : Normal

 

 

PRINCIPAL BANKERS

 

NAME               : TRADE AND DEVELOPMENT BANK OF MONGOLIA

 

Branch              : Chingeltei District

Street                           : Baga Toiruu 12

Town                 : Ulaanbaatar

 

Telephone         : (976 11) 324 690

Fax                   : (976 11) 324 690

 

The company also has an account with the following banks :

 

1. Khan Bank

   Seoul Street 25

   Sukhbaatar District

   Ulaanbaatar

   Telephone      : (976 11) 332 333 

   Fax                 : (976 70) 117 023

 

2. Khas Bank

   Da Huree automarket 

   Ulaanbaatar

   Telephone      : (976 11) 459 023

   Fax                : (976 11) 459 023

 

 

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     4,200,000 - 2006 - exact

                    : US DLRS     7,000,000 - 2007 - exact *

                    : US DLRS     7,800,000 - 2008 - exact

                    : US DLRS     6,640,000 - 2009 - exact

                    : US DLRS     7,560,000 - 2010 - exact

                    : not given             - 2011

                    : TUGRIK 10,108,334,362 – 2012 - exact

                    : TUGRIK 11,242,192,038 – 2013 - exact

                    : TUGRIK 12,000,000,000 – 2014 – projected

 

Net Profit      : TUGRIK  4,738,241,702 – 2012 - exact

                    : TUGRIK  4,757,396,011 – 2013 - exact

 

* Sharp increase in sales turnover of the financial year of 2007 was due to a big amount of supplies imported from overseas.

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started      : 28 August 2003

 

History              : The subject was established in Ulaanbaatar on 28 August 2003.

 

Tax No.             : 2774097 

 

Authorised Capital : TUGRIK 12,772,880,487.24

 

Paid-Up Capital    : TUGRIK 12,772,880,487.24

 

Limited Liability Company with the following directors and shareholders :

 

 

Directors

 

1. Tsegmed Batbayar                      

 

2. Tserendorch Odsuren

 

3. Angarag Batjargal (Ms)

 

 

 

Shareholders                                                   Percentage

 

1. Tsegmed Batbayar                                               55%           

  (Mongolian national)

 

2. Tserendorch Odsuren                                            45%

  (Mongolian national)

 

Affiliated companies of Bosa Impex LLC :

 

Subject is a member of the Bosa Holding LLC group of companies, Mongolia, headed by :

 

Bosa Holding LLC

Orkhon 1, Street Amarsanaa

Bayangol District

Ulaanbaatar 16040

Mongolia

Telephone         : (976 11) 361 531 / 361 560

Fax                   : (976 11) 305 056

 

Other members of the group include the following companies :

 

1. Bosa LLC

   Amarsanaa Street

   16 Khoroo

   Bayangol District

   Ulaanbaatar-44

   Telephone      : (976 11) 361 531

   Fax                : (976 11) 361 339

   Est.               : 22 October 1996

 

2. Baruun Bus LLC

   Teeverchid Street 171

   Songinokhairkhan District

   Ulaanbaatar 18103

   Mongolia

   Telephone      : (976 11) 632 713

   Fax                : (976 11) 632 713

 

3. Blue Gold LLC

   Orkhon 1, Street Amarsanaa

   Bayangol District

   Ulaanbaatar 16040

   Telephone      : (976 11) 360 039 / (976 94) 010 039

   Fax                : (976 11) 360 043

 

4. Owl Security LLC

   Orkhon 1, Street Amarsanaa

   Bayangol District

   Ulaanbaatar 16040

   Mongolia

   Telephone      : (976 11) 305 041 / 305 042

   Fax                : (976 11) 361 339

 

5. Bosa Catering LLC

   Orkhon 1, Street Amarsanaa

   Bayangol District

   Ulaanbaatar 16040

   Mongolia

   Telephone      : (976 11) 367 254

   Fax                : (976 11) 305 056  

 

6. Bosa Construction LLC

   Orkhon 1, Street Amarsanaa

   Bayangol District

   Ulaanbaatar 16040

   Mongolia

   Telephone      : (976 11) 361 560

   Fax                : (976 11) 305 056

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Trading as importers and wholesalers of foodstuff including confectionary products, edible oil, pickles and olives.

 

Subject's main suppliers are as follows :

 

- Arcor S.A.I.C, Group of Argentina;

- Continental Bakery GmbH of Germany;

- Vobro and Frutico companies of Poland;

- Kervan Gida and Dost Gida companies of Turkey;

- Owl International Pte ltd of Singapore;

- Cailan Oils&Fats Industries LLC of Vietnam;

- Hosan of South Korea.

NACE Codes : 4617 / 4634 / 4638

 

Imports from South Korea, China, Philippines, Singapore, Malaysia, Vietnam, Russia, Poland, Hungary, Spain, Germany, Turkey, Mexico, Brazil and Argentina.

 

Subject does not export, all sales are domestic.

 

 

FACILITIES

 

The Company has the following facilities :

 

Owned administrative offices located at the heading address as well as 80,000 sq. m. storage facilities located elsewhere in Ulaanbaatar.

 

Subject's sister companies own a chain of eight supermarkets located elsewhere in Ulaanbaatar where Bosa Impex Co Ltd is the main supplier.

 

 

SPECIAL NOTES

 

You enquired on: BOSA IMPEX CO LTD BOCA HMIIEKC JITI. Please note that subject's correct registered name is as per heading.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.06

UK Pound

1

Rs.101.84

Euro

1

Rs.81.56

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

NIT

 

               

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.