MIRA INFORM REPORT

 

 

Report Date :

21.11.2012

 

IDENTIFICATION DETAILS

 

Name :

MCS INTERNATIONAL LLC

 

 

Formerly Known As :

MCS International XXK

 

 

Registered Office :

MCS Anun Center, Chinggis Avenue, Khan-Uul District, 3rd Khoroo, Ulaanbaatar 210136

 

 

Country :

Mongolia

 

 

Date of Incorporation :

01.04.1996

 

 

Com. Reg. No.:

9011035035

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Providers of electrical, mechanical, hydraulic and civil engineering, IT and automation and consulting services

 

 

No. of Employees :

8,000 (group)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

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 – 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

 

MCS International LLC

 

ADDRESS

 

Building :           MCS Anun Center

 

Street   :           Chinggis Avenue

 

Area     :           Khan-Uul District, 3rd Khoroo

 

Town     :           Ulaanbaatar 210136

Country  :          Mongolia

 

Telephone:        (976 77) 226 363 / 226 6264 / (976 11) 346 464 / (976 11) 346 363/ Mobile (976 88) 119 577 / (976 88) 119 577 (Tserensereeteriin Ganbold)

Fax      :            (976 77) 226 030 / (976 11) 346 6030

E-Mail   :           mcsinter@mcs.mn  / ganbold_t@yahoo.com  / ganbold@mcs.mn

 

Trading Style :   MCS International

 

Also known as : MCS International XXK / MCS International Co Ltd

 

 

SENIOR COMPANY PERSONNEL

 

Name                                                                Position

 

1. Odjargal Jambaljamtsiin                      Chairman & Chief Executive Officer

 

2. Enkhtuvshin Dachtseren                     Vice President & Strategy Director

 

3. Jahtunur Lingov                                  Vice President & Human Resources

Director

 

4. Ganhuyat Adilbish                              Chief Financial Officer

 

5. M. Bayarbakhdal                                Chief Operating Officer

 

6. Tserensereeteriin Ganbold                  Managing Director

 

7. Mr. Ted                                                         Brand Manager

 

8. Ms. Javhaa                                        Office Manager

 

Total Employees :                                   520 (subject)

8,000 (group)

 

PAYMENTS

 

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

 

Subject is a member of the MCS Group of Companies - one of the largest private sector entities in terms of number of employees in Mongolia with about 8,000 through its contractors and subcontractors. The Group has more than 32 subsidiaries covering diversified business activities including: energy & infrastructure, general manufacturing & services, information & communications, property development, and - food, beverage & alcohol. The Group had annual sales turnover $US 250 million in 2008.

 

Associations inspire added 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.

 

Trade risk assessment : Normal

 

 

PRINCIPAL BANKERS

 

NAME     :         TRADE AND DEVELOPMENT BANK OF MONGOLIA

 

Branch   :          Juulnchny Street 7

Town     :           Ulaanbaatar 210646

 

Telephone:        (976 11) 312 362 / 331 133

Fax      :            (976 11) 325 449

 

Subject also has accounts with the following banks :

 

1. Golomt Bank of Mongolia

Main Branch

Bodi Tower, Sukhbaatar Square

Ulaanbaatar

Telephone: (976 11) 311 530

Fax      : (976 11) 312 307

 

2. Khan Bank of Mongolia

Peace Avenue

P.O Box-185

Ulaanbaatar

Telephone: (976 11) 457 880

Fax      : (976 11) 457 880

 

 

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 10,000,000,000 - 2010 - exact

: TUGRIK 20,000,000,000 - 2011 – exact

: TUGRIK 25,000,000,000 - 2012 – exact*

: TUGRIK 30,000,000,000 - 2012 - projected

 

Net Profit          : but stated to be 10-15% of the sales turnover

 

* 10 months results (January – October).

 

Financial year ends 31 December.

 

The following information applies to the MCS Group :

 

Sales Turnover      : US DLRS  40,000,000 - 2002 - exact

: US DLRS  50,000,000 - 2003 - exact

: US DLRS  80,000,000 - 2004 - exact

: US DLRS 100,000,000 - 2005 - exact

: US DLRS 150,000,000 - 2006 - exact

: US DLRS 200,000,000 - 2007 - exact

: US DLRS 250,000,000 - 2008 - exact

 

Net Profit          : not given but stated to be 10%.

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started :                1 April 1996

 

History :                        The subject company was established in Mongolia on 1 April 1996 under the decree No.: 421, however origins can be traced back to 1993.

 

C.R. No. :                      9011035035

 

Tax No.:                        2090007

 

Authorised Capital :        TUGRIK 700,000,000

 

Paid-Up Capital :            TUGRIK 700,000,000

 

Limited Liability Company with the following sole shareholder :

 

MCS Holding LLC                                    100%

Central Tower, 15th Floor

2 Sukhbaatar Square, SBD-8,

Sukhbataar District

Ulaanbaatar 210620a

Telephone: (976 11) 312 625 / 311 079

Fax      : (976 11) 312 175

 

MCS Holding LLC, founded in 1993 as the first Mongolian private

consulting company in the energy sector, the MCS Group has

successfully expanded its business operations in such diversified

fields, as energy and infrastructure, information and communication

technology, beverage manufacturing and distribution, wholesale and

retail, property development, construction and printing. The MCS

Group has 8,000 employees and has been ranked as one of the top five

taxpayers for the last consecutive years.

 

Personal Profile on Odjargal Jambaljamtsiin :

 

Odjargal Jambaljamtsiin graduated from the Polytechnic Institute,

Kiev, in 1989, Mr. Odjargal worked as an engineer at the Energy

Bureau in Mongolia for a few years before setting up his own

engineering company in 1993. He has a MBA from Maastricht School of

Management.

 

Od Jambaljamtsiin :

 

Mr. Od, the older brother of Mr. Odjargal, graduated from Moscow

University of Foreign Relations with a bachelor’s degree and from

Oxford School of Foreign Service with a master’s degree and had

served as a diplomat for many years before joining the company.

 

Affiliated companies of MCS International Co Ltd :

 

Associates

 

1.  Enerko LLC

MCS Anun Center

Chinggis Avenue

Khan-Uul District, 3rd Khoroo

Ulaanbaatar 210136

Telephone: (976 11) 346 464

Fax      : (976 11) 346 262

 

2.  Erchim Suljee LLC

MCS Anun Center

Chinggis Avenue

Khan-Uul District, 3rd Khoroo

Ulaanbaatar 210136

Telephone: (976 11) 346 464

Fax      : (976 11) 346 262

 

3.  MCS Electronics Co Ltd

Central Tower 14/F

Sukhbaatar Square No. 2

Sukhbaatar District, SBD-8

Ulaanbaatar-210620A

Telephone: (976 11) 323 705 / Mobile (976 88) 113 263

Fax      : (976 11) 312 699

 

4.  Spirit Bal Buram JSC

Mandal sum

Selenge aimag

Telephone: (976 11) 311 079

Fax      : (976 11) 312 175

E-mail   : eldevoch@mcs.mn

 

5.  Interpress Co Ltd

MCS Plaza, 1st Floor

Seoul St 4

Ulaanbaatar 210644

Telephone: (976 11) 326 898 / Mobile (976 99) 118 668

Fax      : (976 11) 329 474

E-mail   : interpress@magicnet.mn

 

6.  MCS Property LLC

MCS Palaza

Seoul Street 4

Ulaabaatar 210644

Telephone: (976 11) 311 079 / 312 625

Fax      : (976 11) 312 175

7.  Anungoo Co Ltd (Procter & Gamble)

MCS Plaza, 2nd Floor

Seoul St 4

Ulaanbaatar 210644

Telephone: (976 11) 961 619

Fax      : (976 11) 312 175

E-mail   : anungoo@mcs.mn

 

8.  MCS Tour Co Ltd

MCS Plaza, 5th Floor

Seoul St 4

Ulaanbaatar 210644

Telephone: (976 99) 115 153

Fax      : (976 11) 312175

E-mail   : MCSTour@mcs.mn

(dormant)

 

9.  Chinggiz Eco Tour Co Ltd

MCS Plaza, 5th Floor

Seoul St 4

Ulaanbaatar 210644

Tel: (976 99) 115 153

Fax: (976 11) 312175

 

10. Devshil-Trade Co Ltd

Sonsgolon

Bayangol district

Ulaanbaatar

Telephone: (976 11) 632 964 / 631 539

Fax      : (976 11) 631 709

E-mail   : deb_enkh@mcs.mn

 

11. MCS Gyals Medical Centre

1st Floor

Russian Hospital

Jukov Ave.131

Bayanzurkh district

Ulaanbaatar

Telephone: (976 99) 112 603 / (11) 457 781

Fax      : (976 11) 451 807

E-mail   : mcsInter@mcs.mn

 

12. Zuunkharaa Trade Co Ltd

MCS Coca-Cola Plaza

Chingis Avenue

Khan Uul district

Ulaanbaatar-19

Telephone: (976 11) 345 234

Fax      : (976 11) 345 228

 

13. MCS Coca Cola Co Ltd

Peace Avenue, Gachuurtiin zam 104

10 Khoroo, Bayanzurkh District

Ulaanbaatar

Telephone: (976 70) 655 555

Fax      : (976 70) 165 500

 

14. MCS Anun LLC

1st floor, Building M-100

Chingeltei District

Ulaanbaatar

Telephone: (976 11) 312 908 / 312 938

Fax      : (976 11) 312 907

 

15. Mon Sat Co Ltd

MCS Plaza, 3rd Floor

Seoul St 4

Ulaanbaatar 210644

Telephone: (976 11) 312 625

Fax      : (976 11) 312 175

 

16. Orbitnet Co LLC

Central Tower 14/F

Sukhbaatar Square No. 2

Sukhbaatar District, SBD-8

Ulaanbaatar-210620A

Telephone: (976 11) 323 705

Fax      : (976 11) 312 699

 

17. Officenet LLC

MCS Plaza, 3rd Floor

Seoul St 4

Ulaanbaatar 210644

Telephone: (976 11) 344 931

Fax      : (976 11) 312 175

 

18. Goyo Co Ltd

MCS Plaza, 3rd Floor

Seoul St 4

Ulaanbaatar 210644

Telephone: (976 11) 342 531

Fax      : (976 11) 344 015

 

19. Shangrila Hotel

Ulaanbaatar

Telephone: (976 11) 326 602

Fax      : (976 11) 326 643

 

20. Orchlon School

Ulaanbaatar

Telephone: (976 11) 353 519

Fax      : (976 11) 354 115

 

21. Orchlon Club

Ulaanbaatar

Telephone: (976 11) 354 327

Fax      : (976 11) 354 326

 

22. MCS Distribution LLC

Ulaanbaatar

Telephone: (976 11) 345 234

Fax      : (976 11) 345 460

 

23. Energy Resources LLC

Central Tower

2 Sukhbaatar square, SBD-8

15th floor

Ulaanbaatar 210620A

Telephone: (976 70) 122 279 / 132 279

Fax      : (976 11) 322 279

 

24. Global Energy

Ulaanbaatar

Telephone: (976 11) 311 079

Fax      : (976 11) 312 175

 

25. Medimpex

Ulaanbaatar

Telephone: (976 11) 310 429

Fax      : (976 11) 318 254

 

26. Irish Pub Grand Khaan

Ulaanbaatar

Telephone: (976 11) 336 666

Fax      : (976 11) 330 995

 

27. MCS - APB LCL

Ulaanbaatar

Telephone: (976 11) 464 304

Fax      : (976 11) 464 306

 

28. Sky Resort

Ulaanbaatar

Telephone: (976 11) 311 079

Fax      : (976 11) 311 079

 

29. MCS Estates

Ulaanbaatar

Telephone: (976 11) 311 079

Fax      : (976 11) 312 175

 

30. Unitel LLC

Central Tower, 8th Floor

Sukhbatar Square 2

Sukhbatar District 8

Ulaanbaatar 210620A

Mongolia

Telephone:  (976 11) 331 730

Fax      :  (976 11) 330 708

E-Mail   :  bayarbakhdal@unitel.mn

Est.: 5 October 2005

C.R. No.: 482106

 

31. Green Catering LLC

14th Floor, Central Tower

Ulaanbaatar

Mongolia

Telephone: (976 11) 314 411

Fax      : (976 11) 314 411

Est.: 2008

 

32. MCSCom LLC

Central Tower 14/F

Sukhbaatar Square No. 2

Sukhbaatar District, SBD-8

Ulaanbaatar-210620A

Telephone: (976 11) 323 705

Fax      : (976 11) 312 699

 

32. Glamour LLC

Ulaanbaatar

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Providers of electrical, mechanical, hydraulic and civil engineering, IT and automation and consulting services.

 

Subject also provides full range of consulting and engineering services required for efficient project execution.

 

Subject also operate electro station.

 

NACE Code : 7112 / 4321

 

Imports from South Korea, USA, Germany, Russia, Singapore, Hong Kong, Japan and China.

 

Subject does not export, all sales are domestic.

 

 

FACILITIES

 

The Company has the following facilities :

 

Owned premises comprising administrative offices, a showroom and storage facilities located at the heading address as well as located elsewhere in Ulaanbaatar (see 'Branch Offices' below).

 

Until 2006 subject’s administrative offices was located at :

 

MCS Plaza

Seoul Street 4 (fmly Natsagdorj Street 4)

PO Box 1272

Ulaanbaatar-13

 

Until 2010 subject’s administrative offices was located at :

 

MCS Anun Center

Chinggis Avenue

Khan-Uul District, 3rd Khoroo

Ulaanbaatar 210136

 

Until May 2012 subject’s administrative offices was located at :

 

Central Tower, 16th Floor

2 Sukhbaatar Square, SBD-8,

Sukhbataar District

Ulaanbaatar 210620a

Telephone: (976 11) 312 625 / 311 079 / 329 484

Fax      : (976 11) 346 030 / 312 175 / 320 241

 

 

BRANCH OFFICES

 

Central Tower, 16th Floor

2 Sukhbaatar Square, SBD-8,

Sukhbataar District

Ulaanbaatar 210620a

Telephone: (976 11) 312 625 / 311 079 / 329 484

Fax      : (976 11) 346 030 / 312 175 / 320 241

 

 

REGISTERED OFFICE

 

MCS Anun Center

Chinggis Avenue

Khan-Uul District, 3rd Khoroo

Ulaanbaatar 210136

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.91

UK Pound

1

Rs.87.38

Euro

1

Rs.70.23

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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.