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Report No. : |
344113.2 |
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Report Date : |
06.11.2015 |
IDENTIFICATION DETAILS
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Name : |
BSB MEBEL LLC |
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Registered Office : |
BSB Service Building,
Teeverchyd Street 5, Zamchny 1, Bayangol District, 182, Ulaanbaatar 14253 |
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Country : |
Mongolia |
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Date of Incorporation : |
24.05.2010 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Trading as importers, wholesalers
and retailers of office and home furniture. |
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No. of Employees : |
34 (subject) 330 plus (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 Limits : |
TUGRIK
200,000,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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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
|
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
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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.
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Source
: CIA |
BSB
Mebel LLC
Building :
BSB Service Building
Street :
Teeverchyd Street 5, Zamchny 1
Area :
Bayangol District
P.O. Box No. : 182
Town :
Ulaanbaatar 14253
Country :
Mongolia
Telephone :
(976 11) 329 090 / 315 632 / Mobiles (976 99) 112 435
(Jargalsaikhan
Banzar) / (976 88) 007 166 / (976
99)
043 805
Fax : (976 11) 324 504 / 311 647
E-Mail :
jargal@bsb.mn / info@bsb.mn / baigal@bsb.mn
Also Known As : BSB Mebel XXK /
BSB Mebel Co. LTD
Name
Position
1. Jargalsaikhan Banzar Chairman
/ Chief Executive
Officer
2. S. Baigal Financial Director
Total Employees : 34
(subject)
330 plus (group)
Slow but correct.
Subject is a subsidiary of BSB
group, which is the leading retailer of electronics, computers, home &
office furniture and bringing the best practices of the world’s leading brands.
The BSB has 32% of consumer electronics, 20% of computer, and 30% of furniture
market share in Mongolia. The BSB has been awarded one of the Top 50
Enterprises of Mongolia for 13 consecutive years, announced by the Government
of Mongolia and the Mongolian National Chamber of Commerce and Industry. The
group employs more than 330 people.
Association inspires confidence
and we consider it is acceptable to deal with subject for MEDIUM amounts, although
it is normal accepted practice for international suppliers to deal on secured
terms with Mongolian importers.
Opinion on maximum credit :
TUGRIK 200,000,000
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
Subject 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 :
TUGRIK 11,386,598,710 – 2013 – exact
: TUGRIK
9,247,554,796 – 2014 - exact
: TUGRIK 15,000,000,000 – 2015 – projected *
Net Profit :
TUGRIK 2,050,301,196 – 2013 - exact
: TUGRIK
1,319,606,085 – 2014 – exact
: TUGRIK
1,825,386,000 – 2015 - projected
* Projected increase in sales turnover in
2015 is due to favorable market conditions.
Financial year ends 31 December.
The following financial information
applies to BSB Services LLC, subject’s parent company :
Sales Turnover :
TUGRIK 66,509,652,000 – 2012 - exact
: TUGRIK 77,912,950,000 – 2013 - exact
: TUGRIK 88,000,000,000 – 2014 – exact
: TUGRIK 93,000,000,000 – 2015 – projected
Net Profit :
TUGRIK 6,948,334,000 – 2012 - exact
: TUGRIK 10,441,212,000 – 2013 - exact
: TUGRIK 11,700,000,000 – 2014 – approx
Total Value Of Stock Held :
TUGRIK 48,140,000,000
* Projected increase in sales turnover in
2015 is due to favorable market conditions.
Financial year ends 31 December.
Date Started : 24 May 2010
History : Subject was established in Ulaanbaatar on 24 May 2010
and commenced trading in July 2010.
C.R. No. : 9011235059 (issue date : 24 May 2010)
Tax Card No. : 5381908 (issue date : 9 July 2010)
Capital : not given
Limited Liability Company with
the following director and shareholders :
Director
Jargalsaikhan Banzar
(Mongolian national)
Shareholders
Percentage
1. BSB Service LLC 51%
BSB Service Building
Teeverchdyn Street 5, Zamchny 1
Bayangol District
P.O. Box 182
Ulaanbaatar 14253
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
C.R. No. : 9011107013
Tax Card No. : 2090457 (issue date : 09/04/1996)
Capital : TUGRIK
2,260,000,000
Shareholder :
- Jargalsaikhan Banzar
(100%)
(Mongolian national)
2. Jargalsaikhan Banzar
49%
(Mongolian national)
Affiliated companies of BSB Mebel
LLC :
Associates
Subject is a subsidiary of BSB
Group, which also includes the following companies :
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 Lux Mebel LLC
Mongolia
5. 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
and retailers of office and home furniture.
NACE Codes : 4615 / 4647 / 4665 /
4759
Imports from Singapore, Malaysia,
China and Poland.
Subject
does not export, all sales are domestic.
The Company has the following
facilities :
Owned premises comprising
administrative offices located at the heading address as well as 7 showrooms
located elsewhere in Ulaanbaatar, Darkhan Uul Aimag and Erdenet (see ‘Branch
Offices’ below).
1. BSB Megastore
Chinggis Avenue
Khan Uul District, 2nd Khoroo
Ulaanbaatar
Telephone: (976 70) 008 994
Fax : (976 70) 008 994
2. BSB Megastore
Bayangol District, 4th Khoroolol
Ulaanbaatar
Telephone: (976 11) 304 724
Fax : (976 11) 360 833
3. BSB Megastore - Amankhuur
Namiyan Ju Street
Bayanzurkh District
Ulaanbaatar
Telephone: (976 77) 020 019
4. BSB Misheel
Misheel Exhibition Center
Chinggis Avenue
Khan Uul District
Ulaanbaatar
Telephone: (976 70) 110 441
5. BSB Superstore - Tavan Shar
Songinokhairkhan District, 18th Khoroo
Ulaanbaatar
Telephone: (976 70) 171 880
6. BSB Superstore - Darkhan
Darkhan Soum, 10th Team
Darkhan Uul Aimag
Telephone: (976 70) 378 008
7. BSB Superstore - Erdenet
Central Shopping Center, 1st Floor
Erdenet
Telephone: (976 70) 355 722
As per interview and
correspondence with subject’s financial director (S. Baigal), it has been confirmed
that the tax number provided by you “2108752” is not related to the subject nor
ever was. The correct date of establishment for the subject is as listed in our
report where as the only link/reference for the date you have provided is that
it applies to subject’s parent’s date of establishment.
The postal code given by you : “10628” is
incorrect. Please note that the correct postal code is as per heading.
Interviewed : Jargalsaikhan
Banzar (Chairman / Chief Executive Officer).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.65.68 |
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UK Pound |
1 |
Rs.101.02 |
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Euro |
1 |
Rs.71.35 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
TRU |
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.