MIRA INFORM REPORT

 

 

Report Date :

22.01.2013

 

IDENTIFICATION DETAILS

 

Name :

ULEMJ LLC

 

 

Formerly Known As :

ULEMJ XXK

 

 

Registered Office :

Seoul Street 100 Sukhbaatar District P.O. Box : 655 Ulaanbaatar 210646

 

 

Country :

Mongolia

 

 

Date of Incorporation :

20.12.1990

 

 

Com. Reg. No.:

25/5300

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Manufacturers of aluminium & PVC doors and windows.

 

 

No. of Employees :

270

 

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

 

Ulemj LLC (Correct)

Ulemj LLC- Internat Trading (Requested)

 

 

ADDRESS

 

Street                : Seoul Street 100

 

Area                 : Sukhbaatar District

 

P.O. Box          : 655

Town                 : Ulaanbaatar 210646

Country              : Mongolia

 

Telephone         : (976 11) 353 513 / 316 800 / 320 616 (Managing Director) / Mobile (976 99) 114461 (Batmunkh Sengee)

Fax                    : (976 11) 353 514 / 316 806

E-Mail                : info@ulemj.mn

Website             : www.ulemj.mn

 

Also known as : Ulemj XXK

 

 

SENIOR COMPANY PERSONNEL

 

Name                                        Position

 

Batmunkh Sengee                     Managing Director

 

Total Employees : 270

 

 

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     : KHAS BANK

 

Branch   : Main Branch, Sukhbaatar district

P.O.Box  : 46/721

Town     : 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  : US DLRS 10,000,000 - 2008 - exact

                          : US DLRS  8,000,000 - 2009 - exact *

                          : US DLRS 12,000,000 - 2010 - exact

                          : US DLRS 13,000,000 - 2011 - exact

                          : US DLRS 17,000,000 - 2012 - exact

                          : US DLRS 20,000,000 - 2013 - projected

 

Net Profit                : not given but stated to be 10-15% of the

                            sales turnover

 

* Decrease in sales turnover in 2009 was due to the global economic

downturn and unfavourable market conditions.

 

** We approached subject for a copy of their Latest Balance Sheets and Profit & Loss Accounts which we will send to you if/when we receive it.

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started : 20 December 1990

 

C.R. No. : 25/5300

 

Tax No.: 2078988

 

Authorised Capital : TUGRIK 25,000,000,000 (increased from TUGRIK 15,870,000,000 in 2012)

 

Paid-Up Capital : TUGRIK 25,000,000,000 (increased from TUGRIK 15,870,000,000 in 2012)

 

Limited liability company with the following sole shareholder :

 

Batmunkh Sengee                                  100%

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Manufacturers of aluminium & PVC doors and windows.

 

Imports, wholesalers and retailers of food and household products.

 

Subject also engages in marble processing.

 

Operators of supermarkets, a beauty salon and a restaurant.

 

NACE Code: 2221 / 4619

 

Imports from Germany, USA, Italy, the Netherlands, Austria, Finland

and China.

 

Subject's principal suppliers include :

 

- Concord Enterprises Inc., USA. Tel : 1 (323) 588 8888

- Thyssen Polymer, Germany. Tel : 49 (9422) 821 115

- Schueco International, Germany. Tel : 49 5202 993 9315

- Maco (Mayer & Co), Austria. Tel : 43 662 6196-0

- Looze Expeditie, Netherlands. Tel : 31 541 533232

 

Subject does not export, all sales are domestic.

 

 

FACILITIES

 

The Company has the following facilities :

 

Rented premises comprising administrative offices located at the heading address as well as storage facilities located at 46 Sukhbaatar District 210656 Ulaanbaatar.

 

Subject also has owned premises comprising 3 supermarkets, a hairdressing salon and restaurant located elsewhere in Ulaanbaatar (see 'Branch Offices' below).

 

 

REGISTERED OFFICE

 

Seoul Street 100

Sukhbaatar District

P.O. Box : 655

Ulaanbaatar 210646

 

 

BRANCH OFFICES

 

1. “Schueco” vaccuum window & doors factory

   Seoul Street 100

   Ulaanbaatar 210646

   Telephone: (976 11) 316 800

   Fax      : (976 11) 316 806

   (rented)

 

2. "California" Restaurant

   Seoul Street 100

   Ulaanbaatar 210646

   Telephone: (976 11) 319 031

   Fax      : (976 11) 316 709

   (owned)

 

Supermarkets :

 

3. "Good Price-1"

   Makhatma Gandigiyn Street 60-р

   Ulaanbaatar 210646

   Telephone: (976 11) 310 057

   E-mail: admin@ulemj.mn

   (owned)

 

4. "Good Price-2"

   Seoul Street 100

   Ulaanbaatar 210646

   Telephone: (976 11) 324 322

   (owned)

 

5. "Good Price-3"

   Barilgachdyn Street 1-16

   Telephone: (976 99) 146 830

   (owned)

 

Beauty Salon :

 

6. Grease Beauty Salon

   Seoul Street 100

   Ulaanbaatar 210646

   Telephone: (976 11) 313 221

   (owned)

 

 

SPECIAL NOTE

 

You enquired on : Ulemj LLC- Internat Trading. Please note the correct name is as per heading.

 

Interviewed : Batmunkh Sengee (Managing Director).

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.53.87

UK Pound

1

Rs.85.53

Euro

1

Rs.71.77

 

 

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.