MIRA INFORM REPORT

 

 

Report No. :

336133

Report Date :

18.08.2015

 

IDENTIFICATION DETAILS

 

Name :

NEXT MEBEL LLC

 

 

Registered Office :

Bayangol District, Ulaanbaatar

 

 

Country :

Mongolia

 

 

Date of Incorporation :

01.07.2010

 

 

Com. Reg. No.:

9011240118

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Trading as importers, wholesalers, retailers and distributors of kitchen ware as well as home and office furniture.

 

 

No. of Employees :

40 (Subject)

205 (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

 

 

Maximum Credit Limit :

TUGRIK 75,000,000

 

 

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 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Mongolia

B2

B2

 

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 (FDI). 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 strong economic growth because of market reforms 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 emerged from the crisis with a stronger banking sector and needed reforms to the government’s fiscal management. In October 2009, Mongolia passed long-awaited legislation on an investment agreement to develop the Oyu Tolgoi (OT) mine, considered to be among the world's largest untapped copper-gold deposits. However, Mongolia's ongoing dispute with foreign investors developing Oyu Tolgoi has called into question the attractiveness of Mongolia as a destination for foreign investment. This caused a loss of investor confidence, a severe drop in FDI, and a slowing economy, leading to the dismissal of Prime Minister ALTANKHUYAG in November. The new government has made restoring investor trust and reviving the economy its top priority, but it will be challenged to unwind the monetary and fiscal stimulus programs in use since 2013 to counteract the fall in foreign investment. In December 2014 the government awarded a deal to develop the massive Tavan Tolgoi (TT) coal field to a consortium comprising Energy Resources/MCS (Mongolia), Shenhua (China), and Sumitomo (Japan); talks continue to hammer out the financing and the operating details. The economy grew more than 10% per year since 2010, largely on the strength of commodity exports to nearby countries and high government spending domestically, before slowing to 7.8% in 2014. Mongolia's economy 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 nearly 62% of Mongolia's total external trade - China receives some 90% of Mongolia's exports and supplies Mongolia with more than one-third of its imports. Mongolia has relied on Russia for energy supplies, leaving it vulnerable to price increases; in 2014, Mongolia purchased nearly 90% of its gasoline and diesel fuel from Russia. A drop in FDI has put pressure on Mongolia's external finances. Remittances from Mongolians working abroad, particularly in South Korea, are significant.

 

Source : CIA

 

Company Name

 

CO. NAME: Next Mebel LLC

 

 

ADDRESS

 

Building            : Next Plaza Center, 2nd Floor 

 

Street               : Ard Ayush Avenue 15

 

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 / Mobiles (976 99)

                        053 751 (Bolortuya Buyambadorj) / (976 99) 117 615

                                    (Lkhamsuren Chuluunbold) / (976 99) 991 540 (Erdenezaya

                        Chimeddorj)

Fax                   : (976 11) 361 543 ext. 211

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

                                    / chuluunbold@nextelectronics.mn / erdenezaya@next.mn

Website            : www.nextgroup.mn

 

Also Known As : Next Mebel XXK / Next Mebel Co. Ltd

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                                Position

 

1. Lkhamsuren Chuluunbold                   President

 

2. Erdenezaya Chimeddorj                     Vice President

 

3. Bolortuya Buyambadorj                     Head of Purchase Department

 

4. Mandukhai Orgio                               Purchase Manager

 

Total Employees :                                 40 (subject)

                                                            205 (group)

 

 

 

PAYMENTS

 

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

 

Subject is a member of Next Group LLC, Mongolia. The group employs more than 205 people.

 

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

 

Opinion on maximum credit       : TUGRIK 75,000,000

 

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

 

Account No.: 5040041679

 

Subject 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          : TUGRIK 2,857,000,000 - 2013 - exact

                                 : TUGRIK 3,638,000,000 - 2014 - exact

                                 : TUGRIK 4,000,000,000 - 2015 – projected

 

Net Profit              : TUGRIK   293,000,000 – 2013 - exact

                               : TUGRIK   265,000,000 – 2014 – exact

                               : TUGRIK   300,000,000 – 2015 – projected

 

Financial year ends 31 December.

 

The following financial information applies to Next Electronics LLC, subject’s affiliated company (latest available) :

 

Sales Turnover              : US DLRS 25,000,000 - 2011 - exact

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

                                                : US DLRS 40,000,000 - 2013 – approx

 

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 : 1 July 2010

 

History : Subject was established in Ulaanbaatar on 1 July 2010, however origins of its business activities can be traced back to 2003.

 

C.R. No. : 9011240118

 

Tax No. : 5390605 (issue date : 29 October 2010)

 

Authorised Capital : TUGRIK 290,000,000

 

Paid-Up Capital : TUGRIK 290,000,000

 

Limited Liability Company with the following sole shareholder:

 

Lkhamsuren Chuluunbold                           100%

(Mongolian national)

 

Affiliated companies of the Next Mebel LLC :

 

Subject is a member of the Next Group LLC of companies, Mongolia, headed by :

 

Next Group LLC

Next Plaza Center, II Floor 

Ayush Avenue 15

Bayangol District, 13 Khoroo, 3 Khoroolol

P.O. Box 393

Ulaanbaatar 16901

Telephone: (976 11) 361 543 / (976 70) 141 540

Fax      : (976 11) 361 543 ext. 211

 

Other members of the group include the following companies :

 

1. Next Motors LLC

   Ulaanbaatar

   Est.: 2011

 

2. Next Electronics LLC

   Next Plaza Center, II Floor 

   Ayush Avenue 15

   Bayangol District, 13 Khoroo, 3 Khoroolol

   P.O. Box 393

   Ulaanbaatar 16901

   Telephone: (976 11) 361 543

   Fax      : (976 11) 361 543 ext. 211

   Tax. No. : 5337631

   Capital  : US DLRS 4,000,000

 

3. Next Properties LLC

   Ulaanbaatar

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Trading as importers, wholesalers, retailers and distributors of kitchen ware as well as home and office furniture.

 

NACE Codes : 4615 / 4647 / 4665 / 4759

 

Imports from Turkey, Poland and China.

 

Subject does not export, all sales are domestic.

 

 

FACILITIES

 

The Company has the following facilities :

 

280 sq. m. owned comprising administrative offices and 2,200 sq. m. warehouse unit located at the heading address as well as 10 retail outlets located throughout Mongolia.

 

 

 

REGISTERED OFFICE

 

Bayangol District

Ulaanbaatar

 

 

SPECIAL NOTES

 

The address given by you : “Next Plaza Building” is misspelt. Please note that subject’s correct administrative office address is as per heading.

 

Interviewed: Lkhamsuren Chuluunbold (President).

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.22

UK Pound

1

Rs.102.23

Euro

1

Rs.72.39

 

 

 

 

 

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.