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Report No. : |
336133 |
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Report Date : |
18.08.2015 |
IDENTIFICATION DETAILS
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Name : |
NEXT MEBEL LLC |
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Registered Office : |
Bayangol District, Ulaanbaatar |
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Country : |
Mongolia |
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Date of Incorporation : |
01.07.2010 |
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Com. Reg. No.: |
9011240118 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Trading as importers, wholesalers, retailers
and distributors of kitchen ware as well as home and office furniture. |
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No. of Employees : |
40 (Subject) 205 (Group) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
TUGRIK 75,000,000 |
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Status : |
Satisfactory |
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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, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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Mongolia |
B2 |
B2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 |
CO. NAME: Next Mebel LLC
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
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)
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
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
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.
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
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.
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.
Bayangol District
Ulaanbaatar
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 |
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|
1 |
Rs.102.23 |
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Euro |
1 |
Rs.72.39 |
INFORMATION DETAILS
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Analysis Done by
: |
RAS |
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Report Prepared
by : |
NIT |
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.