MIRA INFORM REPORT

 

 

Report Date :

11.03.2014

 

IDENTIFICATION DETAILS

 

Name :

NEXT ELECTRONICS LLC

 

 

Registered Office :

Next Plaza Center, II Floor   Ard Ayush Avenue  Bayangol District, 13 Khoroo, 3 Khoroolol P.O.Box No.: 393 Ulaanbaatar 16901

 

 

Country :

Mongolia

 

 

Date of Incorporation :

04.11.2009

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Trading as importers, wholesalers, retailers and distributors of computers and household appliances.

 

 

No. of Employees :

100

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

Mongolia

C1

C1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

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

 

NEXT ELECTRONICS LLC

 

 

ADDRESS

 

Building            : Next Plaza Center, II Floor 

Street                : Ard Ayush Avenue

Area                 : Bayangol District, 13 Khoroo, 3 Khoroolol

 

P.O.Box No.     : 393

Town                : Ulaanbaatar 16901

Country             : Mongolia

 

Telephone         : (976 11) 361 543 / (976 70) 131 540 / Mobile (976 99) 053 751 (Bolortuya Buyanbadorj) / (976  91) 991 540 / (976 99) 117 615 (Lkhamsuren Chuluunbold)       

Fax                    : (976 11) 361 543  

E-Mail                : bolortuya@nextelectronics.mn / info@nextelectronics.mn / chuluunbold@nextelectronics.mn

Website            : www.enext.mn

 

Also known as  : Next Electronics XXK / Nekst Elektroniks XXK

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                                 Position

 

1. Lkhamsuren Chuluunbold                   President

 

2. Bolortuya Buyanbadorj                       Import Manager

           

3. Mr Tsogtireedui                                             Marketing Manager

 

4. Mrs Damgaa                                                 Office Manager  

 

Total Employees :         100 (subject)

                                     195 (subject and its affiliates)

 

 

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 800,000,000

 

Trade risk assessment: Normal

 

 

PRINCIPAL BANKERS

 

NAME     : KHAN BANK OF MONGOLIA

Branch   : Peace Avenue

Town     : Ulaanbaatar P.O Box-185

 

Telephone: (976 11) 457 880

Fax      : (976 11) 457 880

 

The company also has an account with the following banks:

 

1. Trade and Development Bank of Mongolia

   HudaldaanyGudamj 6

   Ulaanbaatar

   Telephone: (976 11) 321 171

   Fax      : (976 11) 325 449

 

2. Golomt Bank of Mongolia

   Sukhbaatar Square

   PO Box 22

   Ulaanbaatar 210620A

   Telephone: (976 11) 311 530

   Fax      : (976 11) 326 535

 

 

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 25,000,000 - 2011 - exact

                                     : US DLRS 38,000,000 - 2012 - exact

                                                 : US DLRS 40,000,000 - 2013 - projected

 

Net Profit                      : not given but stated to be 10-25% of the

                                      sales turnover

 

Financial year ends 31 December.

 

LEGAL STATUS AND HISTORY

 

Date Started : 4 November 2009

 

Tax No.: 5337631

 

Authorised Capital : US DLRS 4,000,000

 

Paid-Up Capital : US DLRS 4,000,000

 

Limited Liability Company with the following sole shareholder:

 

Lkhamsuren Chuluunbold                           100%

 

Affiliated companies of the subject company :

 

Associates

 

1. Next Motors LLC

   Ulaanbaatar

   Est.: 2011

 

2. Next Mebel LLC

   (frmly Mebel Town LLC)

   3rd Khoroo, Misheel EXPO

   Ulaanbaatar

   Telephone: (976 11) 343 491 / (976 91) 194 026 / (976 96) 001 540

   / (976 99) 031 540

   Fax      : (976 11) 343 491

   E-Mail: info@mebeltown.mn

   Est.: 2004

 

3. Next Properties LLC

   Ulaanbaatar

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Trading as importers, wholesalers, retailers and distributors of computers and household appliances.

 

NACE Code: 4651 / 4651 / 4615

 

Imports from China, Singapore, Kazakhstan, Romania, Thailand, Vietnam, Malaysia, South Korea and Turkey.

 

Subject does not export, all sales are domestic.

 

Distributors for: Samsung, LG, DELL, Lenovo and Asus.

 

 

FACILITIES

 

The Company has the following facilities :

 

Owned 2-storey building comprising administrative offices, a retail outlet and storage facilities located at the heading address as well as 6 retail outlets located in Ulaanbaatar and 3 retail outlets located throughout Mongolia in Erdenet, Akhan and Khovd Aymag.

 

Subject plans to open additional 2 retail outlets in Ulaanbaatar and in region by the end of 1st quarter 2014.

 

 

REGISTERED OFFICE

 

Next Plaza Center, II Floor 

Ard Ayush Avenue

Bayangol District, 13 Khoroo, 3 Khoroolol

P.O.Box No.: 393

Town       : Ulaanbaatar 16901

 

 

SPECIAL NOTE

 

Interviewed: Bolortuya Buyanbadorj (Import Manager).

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.20

UK Pound

1

Rs.102.35

Euro

1

Rs.84.95

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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.