MIRA INFORM REPORT

 

 

Report Date :

02.04.2013

 

IDENTIFICATION DETAILS

 

Name :

MOGOL NOOS LLC

 

 

Formerly Known As :

MOGOL NOOS CO., LTD

 

 

Registered Office :

Jarlol Mongol Corporation 4th Floor Khanu-Uul District, 3 Khoroo Ulaanbaatar

 

 

Country :

Mongolia

 

 

Year of Incorporation :

2001

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Manufacturer of cashmere yarn.

 

 

No. of Employees :

150

 

 

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 :

Usually Correct

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 

 

Mogol Noos LLC (Correct)

MOGOLNOOS CO LTD (Requested)

 

ADDRESS

 

Building :           Jarlol Mongol Corporation 4th Floor

 

Area     :           Khanu-Uul District, 3 Khoroo

 

Town     :           Ulaanbaatar

Country  :          Mongolia

 

Telephone: (976 70) 110 934 (Enkhbat Erdenebat) / Mobile (976 91) 113 264 (Erdenebat Choijilsvren) / (976 96) 603 264 / (976 99) 091 885 / (976 99) 200 943 / (976 96) 510 941

E-Mail   : mogolnoos@yahoo.com

 

Also known as : Mogol Noos XXK / Monol Wool LLC / Mogol Noos Co., Ltd

 

SENIOR COMPANY PERSONNEL

 

   Name                                     Position

 

1. Erdenebat Choijilsvren          Managing Director

 

2. Enkhbat Erdenebat               Marketing Manager

  (son of the above)

 

Total Employees : 150

 

 

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,

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 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. However, the subject interviewed offered

the following information :

 

Sales Turnover                : TUGRIK 1,800,000,000 - 2012 - exact

 

Net Profit                        : not given

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started : 2001

 

History : The subject company was established in Mongolia in 2001, however the origins can be traced back to 1996.

 

Tax No.: 2649373

 

Capital : not given

 

Limited Liability Company with the following directors and shareholders:

 

   Shareholders                            Percentage

 

1. Erdenebat Choijilsvren                         80%

 

2. Gansunbaljir Choijilsvren                      20%

  (brother of the above)

 

Affiliated company of the subject company :

 

Associate

 

Ih Mogol LLC

19th Khoroo

Ulaanbaatar

Mobile: (976 91) 113 264 / (976 99) 091 885

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Manufacturer of cashmere yarn.

 

Subject is operator of wool processing factory.

 

NACE Code : 1310

 

Imports from China and South Korea.

 

Exports to Italy, China, India and South Korea.

 

 

FACILITIES

 

The Company has the following facilities :

 

Administrative offices located at the heading address as well as a manufacturing unit and storage facilities located elsewhere in Tuv Aimag (see 'Branch Offices' below).

 

Subject formerly located at :

 

Bayangol District, SOT-2-1-99

Ulaanbaatar

 

Peace Avenue

Ulaanbaatar

Telephone: (976 11) 351 454 / (976 88) 995 836

Fax      : (976 11) 682 179

 

 

REGISTERED OFFICE

 

Sonor, 2nd Bayantsogt Soum

1-1 Bayantsogt

Tov Aimag 

 

 

BRANCH OFFICES

 

Sonor, 2nd Bayantsogt Soum

1-1 Bayantsogt

Tov Aimag 

 

 

SPECIAL NOTE

 

You enquired on: MOGOLNOOS CO LTD. Please note that the correct name is as per heading.  

 

The address which you provided: TUV AIMAG BAYANTSOGT SOUM, MONGOLIA applies to subject's registered office address. Please note that subject's administrative office address is as per heading.

 

The telephone number which you provided: 9761134182 is incorrect. Please note that subject's correct telephone number is as per heading.

 

Interviewed: Erdenebat Choijilsvren (Managing Director).

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.39

UK Pound

1

Rs.82.32

Euro

1

Rs.69.54

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.