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Report Date : |
21.06.2013 |
IDENTIFICATION DETAILS
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Name : |
MONGOLEMIMPEX CONCERN JSC |
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Registered Office : |
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Country : |
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Date of Incorporation : |
09.05.2006 |
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Com. Reg. No.: |
9012001020 |
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Legal Form : |
Joint Stock
Company |
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Line of Business : |
Importers, wholesalers and retailers of pharmaceutical
products and medical equipment |
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No. of Employees : |
330 (subject) 3,000 (group) |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
No Complaints |
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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 – March 31st 2013
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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Mongolia |
C1 |
C1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Mongolia ECONOMIC OVERVIEW
Mongolia''s extensive mineral
deposits and attendant growth in mining-sector activities have transformed
Mongolia''s economy, which traditionally has been dependent on herding and
agriculture. Mongolia''s copper, gold, coal, molybdenum, fluorspar, uranium,
tin, and tungsten deposits, among others, have attracted foreign direct
investment. 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 globally and
new gold production. By late 2008, Mongolia was hit hard by the global
financial crisis. Slower global economic growth hurt the country''s exports,
notably copper, and slashed government revenues. As a result, Mongolia''s real
economy contracted 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 with better regulations and closer supervision.
The banking sector strengthened but weaknesses remain. 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. Recent calls by nationalist politicians to renegotiate the investment
agreement, however, have called into question the attractiveness of Mongolia as
a destination for foreign direct investment. Negotiations to develop the
massive Tavan Tolgoi coal field face similar obstacles. The economy grew by
6.4% in 2010, 17.5% in 2011, and by more than 12.3% in 2012, largely on the
strength of commodity exports to nearby countries and high government spending
domestically. Mongolia''s economy, however, faces near-term economic risks from
the government''s loose fiscal policies, which are contributing to high
inflation, and uncertainties in foreign demand for Mongolian exports. 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. Due to severe winter weather in
2009-10, Mongolia lost 22% of its total livestock, and meat prices doubled.
Inflation remained higher than 10% for much of 2010-12, due in part to higher
food and fuel prices. The economic slowdown in China during 2011-2012 resulted
in fewer Mongolian exports, a widened trade gap, and decreased government
revenues, putting pressure on Mongolian fiscal policy. Remittances from
Mongolians working abroad, particularly in South Korea, are significant.
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Source : CIA |
Mongolemimpex Concern JSC
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)
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
: 330
(subject)
3,000
(group)
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
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
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
15,244,000,000 - 2012 – exact
: TUGRIK
20,000,000,000 - 2013 - projected
Net Profit : TUGRIK 200,000,000 - 2010 - exact
: TUGRIK 224,000,000 - 2011 – exact
: TUGRIK 64,000,000 - 2012 - exact
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.
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. In 2013 Subject’s shareholding changed to the present.
Until 2013
subject had the following shareholding structure :
1. Agvaanjamba
Arunbold }
}
2. Undermaa
Batbayar (wife of Agvaanjamba Arunbold) } 95%
}
3. Two sons of
Agvaanjamba Arunbold }
4. Girmit
Gotov
5%
C.R. No.:
9012001020
Tax No. : 2116847
Capital : TUGRIK
4,000,000,000
Joint stock company with the following shareholders :
1. Agvaanjamba
Arunbold }
}
2. Undermaa
Batbayar (wife of Agvaanjamba Arunbold) } 100%
}
3. Two sons of
Agvaanjamba Arunbold }
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
Managing Director : Baddurdj Taamdin
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
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, Switzerland, Bulgaria, Ukraine, 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.
The Company has
the following facilities :
Owned 2-storey
building comprises administrative offices, a retail pharmacy and storage facilities
located at the heading address as well as 80 additional retail pharmacies
located throughout Mongolia.
Interviewed :
Tserendash Orshikh (Mrs) (Chief Accountant).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.59.70 |
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UK Pound |
1 |
Rs.92.22 |
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Euro |
1 |
Rs.79.19 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.