|
Report No. : |
312255 |
|
Report Date : |
24.03.2015 |
IDENTIFICATION DETAILS
|
Name : |
BETASTAR LLC |
|
|
|
|
Registered Office : |
Sukhbaatar District Ulaanbaatar |
|
|
|
|
Country : |
Mongolia |
|
|
|
|
Date of Incorporation : |
2007 |
|
|
|
|
Legal Form : |
Limited Liability Company |
|
|
|
|
Line of Business : |
Trading as importers, distributors, wholesalers and retailers of Mercedes Benz automobiles and its spare parts. |
|
|
|
|
No of Employees : |
25 |
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
Mongolia |
B2 |
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 |
Betastar LLC
Building :
Mongolian Star Melchers Co Ltd Building
Street :
Chinggis Avenue 62
Area :
Industrial Zone, Uildveriin Bus 17070, 3rd Khoroo, Khan-Uul District
P.O.
Box No. : 164
Town :
Ulaanbaatar
Country :
Mongolia
Telephone :
(976 11) 318 139 / Mobile (976 99) 046 641 (Ms. Otgonbayar Eudsuren)
Fax :
(976 11) 342 175
E-Mail :
otgonbayar@msmco.net
Website :
www.msm.mn
Also
Known As : Betastar XXK
Name Position
1.
David Reiner Chief Executive Officer
2.
Ms. Otgonbayar Eudsuren Chief Financial Officer
3.
Ms. Bolorma Suren Chief Operating Officer
Total
Employees : 25 (subject)
200 (parent)
No
complaints have been heard regarding payments from local suppliers or banks.
Subject
is a newly established company incorporated in 2007 and commenced trading in
January 2015, however subject is a member of the MSM group which is official
representative world renowned brands of passenger cars, trucks and buses,
mining equipment’s and tools, consumer goods including but not limited to
Mercedes- Benz, Chrysler, Jeep, RAM, Dodge, Mitsubishi Fuso, Freightliner,
WesternStar, BASF, Bosch, Atlas Copco, Boart Longyear, Delker, Johnson &
Johnson, Kimberly Clark, SC Johnson, Hennessy, Moet & Chandon, Dermabond,
PDS II, Moment. In the fiscal year 2014, the MSM Group had sales of US DLRS 35
million and employed 200 people.
Associations
inspire confidence and we consider it is acceptable to deal with subject for
SMALL amounts, however at this rather early stage, we recommend international
suppliers exercise a degree of caution. Future development will be watched with
interest.
Opinion
on maximum credit : TUGRIK 110,000,000
Trade
risk assessment : Normal
March
2015 : As per the subject interviewed, Otgonbayar Eudsuren (Chief Financial Officer), the subject
plans to increase its capital from TUGRIK 1,000,000 to TUGRIK 100,000,000 in
2015.
NAME : GOLOMT BANK OF MONGOLIA
Branch : Bodi Tower, Sukhbaatar Square
Town : Ulaanbaatar
Telephone : (976 11) 311 530
Fax :
(976 11) 312 307
As
the Company has only recently commenced production, relevant financial information
is not available. However, the subject interviewed offered the following
information applies to subject's parent company :
Sales
Turnover : US DLRS 1,500,000 -
2000 - exact
: US DLRS
2,500,000 - 2001 - exact
:
US DLRS 4,750,000 - 2002 - exact
: US DLRS
5,500,000 - 2003 - exact
: US DLRS
6,500,000 - 2003 - approx
: US DLRS
7,000,000 - 2004 - exact
: US DLRS 10,000,000 - 2005 - exact
: US DLRS 15,000,000 - 2006 - exact
: US DLRS 21,000,000 - 2007 - exact
: US DLRS 25,000,000 - 2008 - exact
: US DLRS 19,563,992 - 2009 - exact
: US DLRS 30,783,404 - 2010 - exact
: US DLRS 55,426,208 - 2011 - exact
: not given
- 2012
: US DLRS 51,000,000 - 2013 - exact
: US DLRS 35,000,000 - 2014 - exact *
: US DLRS 38,000,000 - 2015 - projected
Net
Profit : US DLRS
1,606,261 - 2009 - exact
: US DLRS
3,888,188 - 2010 - exact
: US DLRS
4,989,293 - 2011 – exact
: not given
- 2012 / 2013
Loss : US DLRS
(470,000) – 2014 – exact *
* Decrease in
sales turnover and loss in 2014 was due to de valuation of Tugrik.
Financial
year ends 31 December.
Date
Started : 2007
History
: Subject was
established in 2007 and commenced trading in January 2015.
Tax No. : 5161681 (issue date : 4 March 2015)
Authorized
Capital : TUGRIK 1,000,000
Paid
up Capital :
TUGRIK 1,000,000
Limited
Liability Company with the following director and sole shareholder :
Director
David
Reiner
Shareholder
Mongolian
Star Melchers Co Ltd (MSM Group LLC)
100%
Mongolian
Star Melchers Co Ltd Building
Chinggis
Avenue 62
Industrial
Zone, Uildveriin Bus 17070, 3rd Khoroo, Khan-Uul
District
P.O.
Box 164
Ulaanbaatar
Telephone:
(976 11) 318 139 / 342 166 / (976
70) 148 141 / (976 70)
143
548 / (976 70) 143 549 / (976 70) 148 138 / Mobile
(976
99) 046 641 (Ms. Otgonbayar Eudsuren) / (976 99) 114
438
/ (976 99) 094 482 / (976 99) 282 452 / (976 99) 092
991
(Altanzul Timurbaatar)
Fax :
(976 11) 342 175
E-Mail : laurenz@msmco.net
/ david@msmco.net / khandsuren@msmco.net / otgonbayar@msmco.net
Website : www.msm.mn
C.R.
No. : 9019009002
Tax No.: 2560526
Capital
: US DLRS 185,000
Shareholders *
1.
Laurenz Melchers 49.60%
(German national)
2. Mongolia Equipment Services Pte Ltd. 48.57%
Singapore
3.
David Reiner
1.83%
(USA national)
*
(subject’s shareholders structure changed in March 2014)
Personal
Profile on Laurenz Melchers :
Laurenz
Melchers is a cofounder of Mongolian Star Melchers Company (MSM). He and his
family resides in Mongolia since 1997. He holds a B.Sc. from the University of
Massachusetts.
The
Company is involved in the following activities :
Trading
as importers, distributors, wholesalers and retailers of Mercedes Benz
automobiles and its spare parts.
Subject
also provides after-sale services.
Sole
distributor in Mongolia for Daimler Chrysler, Mercedes-Benz,
Mitsubishi
Motors, Jeep, Dodge, Truck, Bosch Tools, Atlas Copco, SC Johnson, ESSO,
Hennessy, Kimberly Clark, Henkel and Johnson and Johnson products.
NACE
Codes: 4511 / 4532
Imports
from European countries and USA.
Subject
does not export, all sales are domestic.
The
Company has the following facilities :
Owned
premises comprising administrative offices, a showroom and storage facilities located at the heading
address.
Sukhbaatar
District
Ulaanbaatar
The
tax registration number given by you: 5151681 is incorrect. Please note that
subject’s correct registration is 5161681.
Interviewed
: Otgonbayar Eudsuren (Chief Financial Officer).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 62.28 |
|
|
1 |
Rs. 93.02 |
|
Euro |
1 |
Rs. 67.36 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
DPT |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.