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Report Date : |
14.06.2014 |
IDENTIFICATION DETAILS
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Name : |
BSB SERVICE LLC |
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Registered Office : |
BSB Service Building, Teeverchdyn Street 5, Zamchny 1, Bayangol District, P.O. Box No.: 182, Ulaanbaatar 14253 |
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Country : |
Mongolia |
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Date of Incorporation : |
05.10.1991 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Trading as importers, wholesalers, retailers and distributors of
consumer electronic appliances, IT Technology equipment including computers,
scanners, laptops, printers as well as household and office furniture. |
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No. of Employees : |
330 |
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 : |
No complaints |
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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 – March 31, 2014
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Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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Mongolia |
C1 |
C1 |
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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 |
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.
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Source
: CIA |
CO. NAME : BSB SERVICE LLC (Correct)
BSB SERVICE CO LTD (Requested)
Building : BSB Service Building
Street : Teeverchdyn Street
5, Zamchny 1
Area : Bayangol District
P.O. Box No.: 182
Town : Ulaanbaatar 14253
Country : Mongolia
Telephone : (976 11) 329 090 /
326 418 / 327 849 / 311 647
Fax : (976 11) 324 504 /
311 647
E-Mail : jargal@bsb.mn /
info@bsb.mn / reception@bsb.mn
Also Known As : BSB Service XXK /
BSB SERVICE CO LTD
Name Position
1. Jargalsaikhan Banzar Chairman / Chief Executive Officer
2. S. Chinbot Sales & Marketing
Director
3. S. Baigol Financial Director
Total Employees : 330
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
NAME : TRADE AND DEVELOPMENT
BANK OF MONGOLIA
Branch : Khudaldaany Gudamj 7
Town : Ulaanbaatar
Telephone: (976 11) 321 171
Fax : (976 11) 325 449
The company also has an account with the following banks :
1. Golomt Bank of Mongolia
4th Floor, Sukhbaatar Square 3
PO Box 11
Ulaanbaatar 210620A
Telephone: (976 11) 311 530 /
311 971 / 326535
Fax : (976 11) 311 958 / 312 307
2. Khan Bank
Seoul Street 25, Fourth Khoroo
Sukhbaatar District
Ulaanbaatar
Telephone: (976 11) 332
333
Fax : (976 70) 117 023
Private companies in Mongolia are not required to publish or
disclose balance sheets. However, the subject interviewed offered
the following information :
Sales Turnover : MNT 66,509,652,000 – 2012 - exact
: MNT 77,912,950,000 – 2013 - exact
: MNT 98,553,000,000 – 2014 – projected *
Net Profit : MNT
6,948,334,000 – 2012 - exact
: MNT 10,441,212,000 – 2013 - exact
: MNT 11,700,000,000 – 2014 - projected
Total Value Of Stock Held : MNT 48,140,000,000
* Projected increase in sales turnover in 2014 is due to favorable
market conditions.
Financial year ends 31 December.
Date Started : 5
October 1991
History : The
subject company was established in Mongolia on 5
October 1991 and
was registered with State Tax Committee on 10 April 1996.
C.R. No. : 2090457
Tax Reg. No. : 9011107013
(issue date : 09/04/1996)
Authorised Capital : MNT
2,260,000,000
Paid up Capital : MNT
2,260,000,000
Limited Liability Company with the following sole shareholder :
Jargalsaikhan Banzar
100%
(Mongolian national)
Affiliated companies of BSB Service LLC :
Associate
1. BSB Megastore LLC
Mongolia
2. BSB Electronics LLC
Mongolia
3. BSB Corporation LLC
Mongolia
Telephone: (976 11) 329 090
Fax : (976 11) 324 504
4. BSB Mebel LLC
Mongolia
5. BSB Lux Mebel LLC
Mongolia
6. BSB Trading LLC
Mongolia
Former Associates :
1. Incomnet LLC
Satellite connection providers.
2. Grape City
Networking and software
solutions providers for banks and
government.
The Company is involved in the following activities :
Trading as importers, wholesalers, retailers and distributors of
consumer electronic appliances, IT Technology equipment including computers,
scanners, laptops, printers as well as household and office furniture.
NACE Codes : 4651 / 4741 / 4615
Subject’s main suppliers are as follows :
- Sony Electronics Pte. Ltd;
- Wilsin Office Furniture Pte. Ltd;
- Electrolux Pte. Ltd;
- Master Chair Industries;
- Indesit Company;
- Spylka Meblowa Kam Sp.J;
- Fagor Mastercook;
- Black Red White S.A;
- Nikon Hongkong Ltd;
- Fabryka Mebli Piaski Etc.;
- Samsung Electronics;
- Toshiba Singapore;
- Sharp-Roxy Sales Pte. Ltd;
- Acer Computers Pte. Ltd;
- Dell Global B.V Singapore.
Imports 80% from Singapore and the rest 20% from Poland, Italy,
China, South Korea,Japan, Malaysia and Taiwan.
Subject only sells locally and does not engage in re-export business.
The Company has the following facilities :
1150 sq. m. owned premises comprising administrative offices, a retail /
wholesale outlet, storage facilities and offices located at the heading address
as well as other 11 retail outlets and another wholesale depot located
throughout Mongolia (see ‘Branch Offices’ below).
1. BSB Megastore
Ulaanbaatar
Telephone: (976 11) 361 827
2. BSB Amankhuur
Ulaanbaatar
Telephone: (976 77) 020 018
3. BSB 100 Ail Superstore
Ulaanbaatar
Telephone: (976 70) 105 036
4. BSB 5 Shar Superstore
Ulaanbaatar
Telephone: (976 70) 171 880
5. ELBA Center
Ulaanbaatar
Telephone: (976 11) 326 786
6. BSB Computers
Ulaanbaatar
Telephone: (976 11) 325 331
7. BSB Misheel
Ulaanbaatar
Telephone: (97670) 110 441
8. BSB Panasonic
Ulaanbaatar
Telephone: (976 77) 020 021
9. BSB Erdenet Superstore
Erdenet
Telephone: (976 70) 355 722
10.BSB Erdenet Furniture
Erdenet
Telephone: (976 70) 357 344
11.BSB Darkhan Superstore
Darkhan
Telephone: (976 70) 378 008
You enquired on : BSB SERVICE CO LTD. Please
note that subject is also known by this name. Subject's correct registered name
is as per heading.
The address given
by you : Teeverchdyn St 5 is
misspelt. Please note that the correct spelling is as per heading.
The zip code given by you : 28
is incorrect. Please note that the correct zip code is as per heading.
Interviewed : Jargalsaikhan
Banzar (Chairman / Chief Executive Officer).
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.59.48 |
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1 |
Rs.100.93 |
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Euro |
1 |
Rs.80.71 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
NNA |
RATING EXPLANATIONS
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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.