MIRA INFORM REPORT

 

 

Report Date :

15.11.2013

 

 

 

Tel. No.:

0097611319090

 

IDENTIFICATION DETAILS

 

Name :

SKY TRADING LLC

 

 

Formerly Known As :

Sky Shopping Centre

 

 

Registered Office :

Sky Department Store Tokyo Street 46 Bayanzurkh District P.O. Box 83 Ulaanbaatar 49

 

 

Country :

Mongolia

 

 

Date of Incorporation :

07.07.2001

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Importing, exporting, wholesale and retail of wool, hides, textile machinery, production of milk, operators of hotels and supermarkets.

 

 

No. of Employees :

180

 

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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

 

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

Source : CIA

Company name

 

CO. NAME :      SKY TRADING LLC (Correct)

                        SKY TRADING CO LTD. (Requested)

 

 

ADDRESS

 

Building : Sky Department Store

 

Street   : Tokyo Street 46

 

Area     : Bayanzurkh District

 

 P.O. Box : 83

 Town     : Ulaanbaatar 49

 Country  : Mongolia

 

Telephone: (976 11) 319 090 ext. 311 / ext. 353 (D. Mashbat) / Mobile (976 77) 323 199 / (976 99) 097 257 (Ch. Amartsetseg)

 

Fax      : (976 11) 315 181

 

E-Mail   : account@skyshop.mn / info@skyshoppingcenter.com / mashbat@skytrading.mn

 

Website  : www.skyshoppingcenter.net

 

Also known as :             Sky Trading Co., Ltd / SkyTrading LLC / Skaytreyding XXK

 

Formerly known as :      Sky Shopping Centre

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                     Position

 

1. Mr. Bolor-Erden                     Chief Executive Officer

 

2. Ms. Oranchimeg                    Chief Accountant

 

3. D. Mashbat                           Deputy Chief Executive Officer / Head 

                                                of Marketing Department

 

4. Sambo Omsure                     Product Manager

 

Total Employees :                     180 (subject)

                                                1,000 (group)

 

PAYMENTS

 

No complaints have been heard regarding payments from local suppliers

or banks.

 

Subject is a member of the Altai Group headed by Altai Holdings LLC The Group employs 1,000 people and engages in importing, exporting, wholesale and retail of wool, hides, textile machinery, production of milk, operators of hotels and supermarkets.

 

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 Gudamj 7

Town     : Ulaanbaatar 210646

 

Telephone: (976 11) 312 362 / 331 133

Fax      : (976 11) 325 449

 

The company also has an account 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. Khas Bank

   Sukhbaatar district

   Ulaanbaatar 14200

   Telephone:     (976 11) 318 185

   Fax      :         (976 11) 328 701

 

3. 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 5,400,000,000 - 2004 - exact

                            : TUGRIK 5,800,000,000 - 2005 - exact

                            : TUGRIK 6,050,000,000 - 2006 - exact

                            : TUGRIK not given        - 2007 - 2011

                            : TUGRIK 4,600,000,000 - 2012 – exact

 

Net Profit          : not given but stated to be profitable

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started :   7 July 2001

 

History : The company was incorporated in Mongolia on 7 July 2001. Until 2013 subject’s trading style was “Sky Shopping Centre” and changed to the present.

 

Tax No.:            2624079

 

Capital :            not given

 

Limited Liability Company with the following sole shareholder :

 

Altai Holding LLC                    100%

F2, Unen Sonin Building

Prime Minister Amar’s Street 2

Ulaanbaatar 20A

Telephone: (976 77) 323 199 / (976 91) 918 678

Fax      : (976 77) 322 770

Chief Executive Officer : G. Tumurkhuyag

Est.: 1991 (as a Altai Trading LLC)

Affiliated companies of Sky Trading LLC :

 

Affiliated companies of the subject company :

 

Associates

 

1. Chinggis Khaan Hotel LLC

   Tokyo Street 10

   Ulaanbaatar 49

   Telephone: (976 11) 313 380

   Fax      : (976 11) 312 788

 

2. Altai Cashmere LLC

   Khan-Uul District 13

   Ulaanbaatar 13

   Telephone: (976 77) 333 333

   Fax      : (976 77) 343 477

 

3. Bats-Invest LLC

   Prime Minister Amar’s Street

   Ulaanbaatar 13

   Telephone: (976 11) 321 899

   Fax      : (976 11) 322 770

 

4. Skytel LLC

   Chinggis Ave 9

   Ulaanbaatar 14251

   Telephone: (976 11) 319 191

   Fax      : (976 11) 318 487

   E-mail   : skytel_comment@yahoo.com

   Website  : www.skytel.mn

 

5. Skynetworks LLC

   Sukhbataar District, 1st Khoroo

   Ulaanbaatar

   Telephone: (976 77) 007 733

   Fax      : (976 77) 007 712

   E-mail   : info@skynetworks.mn

 

6. Mongol Altai Travel Co. Ltd

   1th khoroo, Khan Uul District, PO Box-603

   Ulaanbaatar–23

   Telephone: (976 99) 175 144 / (976 99) 041 350

   E-mail   : info@altaimongoliatravel.com

   Website  : altaimongoliatravel.com

 

7. Telemax Communication LLC

 

8. Altai Mining Co. Ltd

 

9. Altai Petroleum Co. Ltd

   (dormant)

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Importers, wholesalers and retailers of general merchandise.

 

Operators of the following supermarkets “Sky Department Store” and “Sky Hypermarket”.

 

NACE Code : 4617 / 4619 / 4631 / 4634

 

Imports from South Korea, Turkey, Germany, USA, China, Malaysia, Singapore, Poland and Russia.

 

Subject does not export, all sales are domestic.

 

 

FACILITIES

 

The Company has the following facilities :

 

Administrative offices, supermarket styled "Sky Department Store" and

integrated storage facilities located at the heading address as well as supermarket styled “Sky Hypermarket” located in Khan-Uul District, Ulaanbaatar.

 

 

SPECIAL NOTE

 

Interviewed: D. Mashbat (Deputy Chief Executive Officer / Head of Marketing Department).

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.06

UK Pound

1

Rs.101.15

Euro

1

Rs.84.95

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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.