MIRA INFORM REPORT

 

 

Report Date :

22.11.2012

 

IDENTIFICATION DETAILS

 

Name :

MONGOLEMIMPEX CONCERN JSC

 

 

Formerly Known As :

Mongol Em Impex Concern JSC / Mongolemimpeks Kontsern / MEIC (Mongolemimpex Concern)

 

 

Registered Office :

Teeverchid 39, 28 Ulaanbaatar

 

 

 

 

Country :

Mongolia

 

 

 

 

Financials (as on) :

31.12.2012

 

 

 

 

Date of Incorporation :

09.05.2006

 

 

 

 

Com. Reg. No.:

9012001020

 

 

 

 

Legal Form :

Joint Stock Company

 

 

 

 

Line of Business :

Importers, Wholesalers and Retailers of Pharmaceutical Products and Medical Equipment

 

 

 

 

No. of Employees :

3,000 (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

(31.03.2011)

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

 

MONGOLEMIMPEX CONCERN JSC (CORRECT)

MEIC (MONGOLEMIMPEX CONCERN) (REQUESTED)

 

 

company ADDRESS

 

Building : MEIC Building

Street   : Teeverchdiin Street 39

Area     : Sukhbaatar District, 3rd Khoroo

Town     : Ulaanbaatar-28

Country  : Mongolia

Telephone: (976 11) 323 961 / 322 695 (International Relations Department) / Mobile (976 99) 029 333 (Tserendash Orshikh) / (976 99) 096 978 (Tserendash Orshikh) / (976 99) 119 600

Fax      : (976 11) 323 877

E-Mail   : info@meic.mn / tserendash2002@yahoo.com / inkhtuya.ts@meic.mn

Website  : www.meic.mn

 

Shortform Name : MEIC

 

Also known as : Mongol Em Impex Concern JSC / Mongolemimpeks Kontsern / MEIC (Mongolemimpex Concern)

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                                Position

 

1. Agvaanjamba Arunbold           President

 

2. Badbayar Bolormaa (Mrs)      Chief Executive Officer

 

3. Tserendash Orshikh (Mrs)       Chief Accountant

 

4. Inkhtuya Tserenpurev               International Relations Manager

 

Total Employees:           320 (subject)

                                    3,000 (group)

 

 

PAYMENTS

 

No complaints have been heard regarding payments from local suppliers

or banks.

 

Subject is a member of the Bishrelt Group which was established in 1993, comprising 17 companies and employing 3,000 people with annual revenues in the region of US DLRS 360 million in 2009.

 

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     : CAPITAL BANK OF MONGOLIA

Branch   : Sambuugiin Street 48

Town     : Ulaanbaatar 211238

Telephone: (976 11) 319 247 / 315 500

Fax      : (976 11) 310 833

 

The company also has an account with :

 

Khan Bank LLC

Seoul Street 25

P.O. Box 192

Sukhbaatar District

Ulaanbaatar 210644

Telephone: (976 11) 332 333

Fax      : (976 70) 117 023

 

 

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  6,000,000,000 - 2008 - exact

                                    : TUGRIK  7,000,000,000 - 2009 - exact

                                    : TUGRIK 11,000,000,000 - 2010 – approx

                                    : TUGRIK 13,091,868,000 - 2011 - exact

                                    : TUGRIK  6,000,000,000 - 2012 – exact*

                                    : TUGRIK 15,000,000,000 - 2012 - projected

                   

Net Profit                       : TUGRIK    200,000,000 - 2010 - exact

                                    : TUGRIK    224,000,000 - 2011 – exact

                                    : TUGRIK    180,000,000 - 2012 - exact*

 

* 6 months results (January – June).

 

Financial year ends 31 December.

 

The following financial information applies to the Bishrelt Group : 

 

Sales Turnover               : US DLRS 400,000,000 - 2008 - exact

                                    : US DLRS 360,000,000 - 2009 - exact

                    

Net Profit                        : not given, but stated to be profitable

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started : 9 May 2006

 

History : The subject company was established in Mongolia on 9 May 2006 on the basis of a state owned Pharmaceutics Preparation Facility which was in existence since 1923.

 

C.R. No.: 9012001020

 

Tax No. : 2116847

 

Capital : TUGRIK 4,000,000,000

 

Joint stock company with the following shareholders:

 

1. Agvaanjamba Arunbold                                               }

                                                                                    }

2. Ms. Undermaa (wife of Agvaanjamba Arunbold)             }          95%

                                                                                    }

3. Two sons of Agvaanjamba Arunbold                             } 

 

4. Girmit Gotov                                                                          5%

 

Affiliated companies of Mongolemimpex Concern JSC :

 

Associates

 

Subject is a member of the Bishrelt Group headed by :

 

Bishrelt Holding Co Ltd                 

Sambuugiin Street 48

Chingeltei District

POB-104

Ulaanbaatar 211238

Telephone: (976 11) 322 742 / 326 250

Fax      : (976 11) 326 250 / 313 798

Est.: 13 June 1993

Tax No. : 2554534

 


 

Other members of the group include the following companies:

 

1.  Bishrelt Plaza LLC

    Bishrelt Plaza Hotel

    Liberty Sq. 3/1

    Chingeltei District

    POB-104

    Ulaanbaatar 211238,

    Telephone: (976 11) 313786

    Fax      : (976 11) 313792

 

2.  Capital Bank of Mongolia

    Sambuugiin Street 48

    Chingeltei District

    Ulaanbaatar 211238

    Telephone: (976 11) 319247

    Fax      : (976 11) 310833

 

3.  Mongol Meat Expo LLC

    Songinokhairkhan District

    Ulaanbaatar 211137

    Telephone: (976 11) 634875 / 633924

    Fax      : (976 11) 326250 / 634875

 

4.  Mongol Buukhai Daatgal LLC

    Liberty Square 3/1

    Chingeltei District

    POB-104

    Ulaanbaatar 211238

    Telephone: (976 11) 324965

    Fax      : (976 11) 324965

 

5.  Unico Construction LLC

    Tumurchii Street 1/1

    Chingeltei District

    POB-104

    Ulaanbaatar 211238

    Telephone: (976 11) 318227

    Fax      : (976 11) 318273

 

6.  Gooddoor LLC

    Tumurchii Street 1/1

    Chingeltei District

    POB-104

    Ulaanbaatar 211238

    Telephone: (976 11) 318273

    Fax      : (976 11) 326250 / 318273

 

7.  Bishrelt Cosmetics LLC

    Sambuugiin Street 48

    Chingeltei District

    POB-104

    Ulaanbaatar 211238

    Telephone: (976 11) 322742 / 324185

    Fax      : (976 11) 313798 / 32625

 

8.  Bishrelt Industrial LLC

    Sambuugiin Street 48

    Chingeltei District

    POB-104

    Ulaanbaatar 211238

    Telephone: (976 11) 322742 / 324185

    Fax      : (976 11) 313798 / 32625

 

9.  MonDiscovery Tours LLC

    Sambuugiin Street 48

    Chingeltei District

    POB-104

    Ulaanbaatar 211238

    Telephone: (976 11) 322742 / 324185

    Fax      : (976 11) 313798 / 326250

 

10. Bishrelt Trade LLC

    3/1 Liberty Square (aka Erkh Cholonii Talbai 3/1)

    Chingeltei Duureg

    P.O. Box 104

    Ulaanbaatar 211238

    Telephone: (976 11) 324 185 / 324 990 / (976 99) 119 600

    Fax      : (976 11) 313 792 / 326 250 / 313 798

    E-Mail: info@bishreltholding.mn

 

11. Unico LLC

    Teeverchdiin Street 39, 3rd Khoroo

    Sukhbaatar District

    Ulaanbaatar-28

    Telephone: (976 11) 318 273 / 363 392

    Fax      : (976 11) 318 273

    Est.: 17 February 2011

    Tax No.: 5448735

 

12. Lishi LLC

 

13. Insurance LLC

 

14. Bishrelt Palace Hotel LLC

 

15. Chinggis Cashmere LLC

 

16. Bishrelt Mining LLC

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Importers, wholesalers and retailers of pharmaceutical products and medical equipment.

 

NACE Code : 4646

 

Imports from Germany, Austria, Japan, Norway, the Netherlands, Russia, China, Italy, Slovenia, Hungary, India and South Korea.

 

Subject does not export, all sales are domestic.

 

Subject is an official distributor of GlaxosmithKlein, Galenika, KRKA, Krasfarma, EGIS, IDA, Actavis, Neon Laboratories, Panacea biotech and Protex biosystems.

 

 

FACILITIES

 

The Company has the following facilities :

 

Administrative offices, a retail pharmacy and storage facilities located at the heading address as well as 80 additional retail pharmacies located throughout Mongolia.

 

 

SPECIAL NOTE

 

You enquired on: MEIC (Mongolemimpex Concern). Please note that this name applies to an also known as of the subject’s name. Subject’s correct registered name is as per heading.

 

Interviewed : Tserendash Orshikh (Chief Accountant).


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.20

UK Pound

1

Rs.87.79

Euro

1

Rs.70.43

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIT

 

 

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.