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Report No. : |
344113 |
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Report Date : |
12.10.2015 |
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,
P.O. Box No 182, Ulaanbaatar 14253 |
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Country : |
Mongolia |
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Date of Incorporation : |
24.05.2010 |
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Com. Reg. No.: |
9011235059 |
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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 Limit : |
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
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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.
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Source
: CIA |
CO. NAME : 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)
No complaints have been heard regarding payments from local suppliers or
banks.
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 :
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
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.64.78 |
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1 |
Rs.99.54 |
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Euro |
1 |
Rs.73.08 |
INFORMATION DETAILS
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Analysis Done by
: |
KIN |
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Report Prepared
by : |
TPT |
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.