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MIRA
INFORM REPORT
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Report No. : |
490541 |
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Report Date : |
12.02.2018 |
IDENTIFICATION DETAILS
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Name : |
DEUTSCHE WELLE LLC |
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Registered Office : |
Misheel Mega Mall, 1st Floor, Chinggis Avenue, Khan-Uul District, 2nd Khoroo, Ulaanbaatar |
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Country : |
Mongolia |
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Date of Incorporation : |
September 2013 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Trading as importers and retailers of furniture, building
materials including parquet, wallpapers, flooring and related accessories. |
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No. of Employees : |
40 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
B |
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Credit Rating |
Explanation |
Rating Comments |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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Status : |
Moderate |
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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
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Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
MONGOLIA - ECONOMIC OVERVIEW
Foreign direct investment in Mongolia's extractive industries – which are based on extensive deposits of copper, gold, coal, molybdenum, fluorspar, uranium, tin, and tungsten - has transformed Mongolia's landlocked economy from its traditional dependence on herding and agriculture. Exports now account for more than 40% of GDP. Mongolia depends on China for more than 60% of its external trade - China receives some 90% of Mongolia's exports and supplies Mongolia with more than one-third of its imports. Mongolia also relies on Russia for 90% of its energy supplies, leaving it vulnerable to price increases. Remittances from Mongolians working abroad, particularly in South Korea, are significant.
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 WTO 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 by the global financial crisis and Mongolia's real economy contracted 1.3% in 2009. In early 2009, the IMF reached a $236 million Stand-by Arrangement with Mongolia and it emerged from the crisis with a stronger banking sector and better fiscal management. In October 2009, Mongolia passed long-awaited legislation on an investment agreement to develop the Oyu Tolgoi (OT) mine, among the world's largest untapped copper-gold deposits. However, a dispute with foreign investors developing OT called into question the attractiveness of Mongolia as a destination for foreign investment. This caused a severe drop in FDI, and a slowing economy, leading to the dismissal of Prime Minister ALTANKHUYAG in November 2014. The economy had grown more than 10% per year between 2011 and 2013 - largely on the strength of commodity exports and high government spending - before slowing to 7.8% in 2014, and falling to the 2% level in 2015 through 2017, even though government spending remained high.
The May 2015 agreement with Rio Tinto to restart the OT mine and the subsequent $4.4 billion finance package signing in December 2015 stemmed the loss of investor confidence. The current government has made restoring investor trust and reviving the economy its top priority, but has failed to invigorate the economy in the face of the large dropoff in foreign direct investment, mounting external debt, and a sizeable budget deficit. However, Mongolia reached staff-level agreement with the IMF in February 2017 on an Extended Fund Facility program, and once approved by the IMF Board, the program is expected to improve Mongolia’s long-term fiscal and economic stability.
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Source
: CIA |
Company Name
CO. NAME : Deutsche Welle LLC (Correct)
DEUTSCHEWELLE LLC (Requested)
ADDRESS
Building : Misheel Mega Mall, 1st Floor
Street : Chinggis Avenue
Area : Khan-Uul District, 2nd Khoroo
Town : Ulaanbaatar
Country : Mongolia
Mobiles : (976 99) 007 922 (Khosbayar Unurbat) /
(976 80) 061 177
/ (976 88) 024 840
E-Mail : khosbayar@deutschewelle.mn
Also
Known As : DEUTSCHEWELLE LLC
SENIOR COMPANY PERSONNEL
Name Position
Khosbayar
Unurbat General
Director
Total
Employees : 40 (permanent) plus up to 10 part-time staff
according to work in
hand
PAYMENTS
No
complaints have been heard regarding payments from local suppliers or banks.
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.
Trade
risk assessment : Normal
PRINCIPAL BANKERS
NAME : GOLOMT BANK OF MONGOLIA
Branch : Bodi Tower, Sukhbaatar Square
Town : Ulaanbaatar
Telephone:
(976 11) 311 530
Fax : (976 11) 312 307
Subject
also has an account with :
Khas
Bank
Xac
Bank Building, Ulaanbaatar-14200
Post
Branch 20 A
PO
Box 72
Ulaanbaatar
14200
Telephone:
(976 11) 318 185
Fax : (976 11) 328 701
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 8,000,000,000 - 2016 - exact
: TUGRIK
15,000,000,000 - 2017 - exact
: TUGRIK 45,000,000,000 - 2018 - projected
Net
Profit : but stated to be
15-20% of the sales
turnover
Financial
year ends 31 December.
LEGAL STATUS AND HISTORY
Date
Started : September 2013
History
: Subject was established in Ulaanbaatar in September 2013.
Tax
No. : 5750563
Capital
: not given
Limited
Liability Company with the following sole shareholder :
Khosbayar
Unurbat (100%)
(Mongolian
national)
ACTIVITIES
The
Company is involved in the following activities :
Trading
as importers and retailers of furniture, building materials including parquet,
wallpapers, flooring and related accessories.
Subject
provides installation and maintenance services.
Subject’s
main brands include :
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Egger;
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Dolken;
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Ter Hurne;
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Komar;
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Siga;
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Slate Lite;
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Siro;
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Blum;
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Kohler;
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Hawa.
NACE
Code :
4759 - Retail sale of furniture, lighting
equipment and other household articles
in specialised stores
4618 - Agents specialised in the sale of other
particular products
Imports
from Germany, Austria, Switzerland, Poland and Russia.
Subject
does not export, all sales are domestic.
FACILITIES
The
Company has the following facilities :
Rented
premises comprising administrative offices, a showroom and storage facilities
located at the heading address as well as one showroom located in Ulaanbaatar.
Until
2017, subject was located at :
120
Myngat 6-30 Turmurchin Street
Khan-Uul
District, 1st Khoroo
Ulaanbaatar
SPECIAL NOTES
You
enquired on : DEUTSCHEWELLE LLC. Please note that subject is also known by this
name. The subject's correct registered name is as per heading.
The
address given by you: : 1-R KHOROO 120 MYNGAT 6-30 TURMURCHIN ST., KHAN-UUL
DISTR., ULAANBAATAR is misspelt and applies to the subject’s previous address.
Please note that the current administrative address is as per heading.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 64.37 |
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1 |
INR 89.71 |
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Euro |
1 |
INR 78.89 |
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MNT |
1 |
INR 0.026 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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PRI |
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Report Prepared
by : |
KET |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
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Company
background and operations size
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Promoters
/ Management background
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Payment
record
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Litigation
against the subject
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Industry
scenario / competitor analysis
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Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.