MIRA INFORM REPORT

 

 

Report Date :

01.11.2012

 

IDENTIFICATION DETAILS

 

Name :

DELTA HOLDING LLC

 

 

Registered Office :

Chinggis Avenue 13, Khan-Uul District, P.O.Box No. 28/343, Ulaanbaatar 210628

 

 

Country :

Mongolia

 

 

Date of Incorporation :

06.10.1998

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject is a holding and management Company for a group of companies

 

 

No. of Employees :

60 employees

 

 

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 :

Unknown

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Mongolia

C1

C1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

Mongolia - ECONOMIC OVERVIEW

 

Economic activity in Mongolia was traditionally based on herding and agriculture - Mongolia's extensive mineral deposits, however, have attracted foreign investors, and the country is undergoing an economic transformation through its mining boom. Mongolia holds copper, gold, coal, molybdenum, fluorspar, uranium, tin, and tungsten deposits, among others, which account for a large part of foreign direct investment and government revenues. 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 and new gold production. By late 2008, the country was faced with external shocks from the global financial crisis, and a sharp drop in commodity prices slashed government revenues. GDP dropped 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. The banking sector is recovering and the government has started to enact greater supervision regulations. 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 deposits. Another similarly lengthy process is underway for an investment agreement for the massive coal mine at Tavan Tolgoi; it is under review by the National Security Council and a final decision is expected in 2012. The economy grew 6.4% in 2010 and 17.3% in 2011, largely on the strength of commodity exports to nearby countries. Trade with China represents more than half of Mongolia's total external trade - China receives more than 90% of Mongolia's exports. Mongolia purchases 95% of its petroleum products and a substantial amount of electric power from Russia, leaving it vulnerable to price increases. In the face of anticipated growth in mining revenues, the country is grappling with the challenge of avoiding an overheated economy. Due to severe winter weather in 2009-10, Mongolia lost 22% of its total livestock, and meat prices doubled. Renewed concerns are surfacing over controlling inflation, which was more than 10% for much of 2010-11, due in part to soaring food prices. Government spending - on line to increase as much as 75% over 2011 - has added to concerns over inflation. Remittances from Mongolians working abroad, particularly in South Korea, are significant. Money-laundering is a growing concern.

                                                                          

 

Source : CIA

 

 


Company name

 

Delta Holding LLC (Correct)

DELTA HOLDING (Requested)

 

 

company ADDRESS

 

Building :           Delta Auto Service Co., Ltd

Street   :           Chinggis Avenue

Area     :           Khan-Uul District, 3rd Khoroo, 19th Khoroolol

Town     :           Ulaanbaatar

Country  :          Mongolia

Telephone:        (976 11) 343 333 / 345 416 / 345 152 / Mobile (976 99) 115 396 (Uundai Munkhjargal) / (976 99) 003 504 / (976 99) 189 204 / (976 95) 251 010 / (976 99) 003 201 (Ms. Orunsaha)

Fax      :            (976 11) 341 413

E-Mail   :           munk@delt.mn  / accountant@delta.mn

 

Also known as :             Delta Holding XXK

 

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                    Position

 

1. Uundai Munkhjargal   Managing Director

 

2. Ms. Orunsaha             Chief Accountant

 

3. A. Odgerel                   Foreign Trade Manager

 

Total Employees : 60

 

 

PAYMENTS

 

No complaints have been heard regarding payments from local suppliers or banks.

 

We consider it is acceptable to deal with subject for SMALL amounts, however in view of the lack of financial information we recommend international suppliers exercise a degree of caution.

 

Trade risk assessment: Above Average

 

 

PRINCIPAL BANKERS

 

NAME     :         TRADE AND DEVELOPMENT BANK OF MONGOLIA

Branch   :          Juulnchny Gudamj 7

Town     :           Ulaanbaatar 210646

Telephone:        (976 11) 312 362 / 331 133

Fax      :            (976 11) 325 449

 

 

FINANCIAL INFORMATION

 

Private companies in Mongolia are not required to publish or disclose balance sheets. Balance sheets are not available from other sources, and the subject interviewed declined to give any financial information, which the company regards as strictly confidential.

 

 

LEGAL STATUS AND HISTORY

 

Date Started : 6 October 1998

 

Tax No.: 5370221

 

Capital : not given

 

Limited Liability Company with the following sole shareholder:

 

Uundai Munkhjargal                           100%

 

Affiliated companies of Delta Holding LLC :

 

Subsidiaries

 

1. Delta Foods Co., Ltd

   Teeverchidiin Street 6

   Bayangol District, 2nd Khoroo

   Ulaanbaatar

   Telephone: 976 21 242 135

   Fax      : 976 21 242 135

 

2. Delta Auto Service Co., Ltd

   (Delta Avtoservis XXK)

   Chinggis Avenue

   Khan-Uul District, 3rd Khoroo, 19th Khoroolol

   Ulaanbaatar

   Telephone: (976 11) 343 333 / (976 21) 242 135 / (976 93) 225 444

   Fax      : (976 11) 341 413 / (976 21) 242 525

   Tax No.: 2666936

 

3. Delta Complex Trading Co., Ltd

   Chinggis Avenue

   Khan-Uul District, 3rd Khoroo, 19th Khoroolol

   Ulaanbaatar

   Telephone: (976 11) 343 333

   Fax      : (976 11) 341 413

   Email    : trade@delta.mn

 

4. Delta Mongol Trans Co., Ltd

   Ulaanbaatar

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Holding and Management Company for a group of companies.

 

Subject's subsidiaries covering diversified business activities including:

 

- Auto trade and aftersales services

- Foodstuff

- Transport

- Hotel

 

NACE Code : 6420

 

Subject's subsidiaries imports from Germany, Russia, Japan, Argentina, Poland, Turkey and China.

 

Subject's subsidiaries exports to China, Australia, Germany, Russia and Japan.

 

 

FACILITIES

 

The Company has the following facilities :

 

Administrative offices located at the heading address.

 

 

REGISTERED OFFICE

 

Chinggis Avenue 13

Khan-Uul District

P.O.Box No.: 28/343

Ulaanbaatar 210628

 

SPECIAL NOTE

 

You enquired on: DELTA HOLDING. Please note that the correct name is as per heading.  

 

The e-mail address given by you : trading02@delta.mn is could not be identified. Please note that subject's correct e-mail address is as per heading.

 

The address which you provided: P O Box 28/343 Chinggis Avenue 13, Khan-Uul D MNG-210628 Ulaanbaatar applies to subject's registered office address. Please note that subject's operational office address is as per heading.

 

Interviewed: Uundai Munkhjargal (Managing Director).

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.12

UK Pound

1

Rs.87.08

Euro

1

Rs.70.15

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.