MIRA INFORM REPORT

 

 

Report Date :

08.04.2014

 

IDENTIFICATION DETAILS

 

Name :

NARAN TRADE CO LTD

 

 

Registered Office :

Naran Building, Seoul Street 42/1, Sukhbaatar District, Khoroo-5, 46/568, Ulaanbaatar

 

 

Country :

Mongolia

 

 

Date of Incorporation :

12.06.1990

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Investment and holding company engaged in management and administration of its subsidiary companies, engaged in the following fields of activities :

Trading in audio, video appliances and electronics, authorized distributor for Sony, Sony Ericsson, Phillips and Samsung products;

 

 

No. of Employees :

40 (administrative staff)

1,000 plus (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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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-gold deposits. Mongolia's ongoing dispute with a foreign investor over Oyu Tolgoi, however, has called into question the attractiveness of Mongolia as a destination for foreign direct investment. Negotiations to develop the massive Tavan Tolgoi coal field also have stalled. The economy has grown more than 10% per year since 2010, 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 and monetary policies, which are contributing to high inflation, and from 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 and is Mongolia's largest supplier. Mongolia has relied on Russia for energy supplies, leaving it vulnerable to price increases; in the first 11 months of 2013, Mongolia purchased 76% of its gasoline and diesel fuel and a substantial amount of electric power from Russia. A drop in foreign direct investment and a decrease in Chinese demand for Mongolia's mineral exports are putting pressure on Mongolia's balance of payments. Remittances from Mongolians working abroad, particularly in South Korea, are significant.

 

Source : CIA


Company name and address

 

NARAN TRADE CO LTD (Correct)

NARAN GROUP             (Requested)

 

 

ADDRESS

 

Building : Naran Building

 

Street   : Seoul Street 42/1

 

Area     : Sukhbaatar District, Khoroo-5

 

P.O. Box : 46/568

Town     : Ulaanbaatar

Country  : Mongolia

 

Telephone: (976 11) 322 758 / 319 535 / 322 855 / 317 567 / Mobile (976 99) 032 721 (Ms. Girle Sagadorj)

Fax            : (976 11) 320 396

E-Mail   : assistanttuznaran@gmail.com / naranfoods@narantrade.mn / narantrade@mongol.net

Website  : www.narantrade.mn

 

Trading Style : Naran

 

Also known as : Naran Trade LLC / Naran Trade XXK / Naran Trade Co.,Ltd

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                     Position

 

1. Sereeter Boldkhet                  Chairman

 

2. Dendev Udval (Mrs)               Chief Executive Officer

   (wife of the above)

 

3. Ms. Girle Sagadorj                 Assistant to the Chairman

 

Total Employees :                       40 (administrative staff)

                                                1,000 plus (group)

 

PAYMENTS

 

No complaints have been heard regarding payments from local suppliers or banks.

Subject is a holding company and a flagship of the Naran Group of

Companies which currently has a total of 11 subsidiary companies

with a wide range of businesses under its portfolio. The Group

employs more than 1,000 staff with group sales turnover reaching US$ 50 million in 2008.

 

We consider it is acceptable to deal with subject for LARGE amounts,

although it is normal accepted practice for international suppliers

to deal on secured terms with Mongolian importers.

 

Trade risk assessment : Normal

 

 

TRADE REFERENCES

 

NAME     : SONY ELECTRONICS (SINGAPORE) PTE LTD

Country  : Singapore

Telephone: (65) 470 1031

Fax      : (65) 470 1222

Contact  : Thomas Lor, Market Development Dept Manager

 

NAME     : SCHWARZKOPF & HENKEL COSMETICS KGAA

Country  : Germany

Telephone: (49 211) 797 3728

Fax      : (49 211) 798 9115

Contact  : Andrea Wescher (Mrs), Manager of Cosmetics & Toiletries

 

NAME     : STORCK ASIA PACIFIC PTE LTD

Country  : Germany         

Telephone: (65) 738 9488

Fax      : (65) 735 0788

Contact  : Eric Schmidt, Export Director            

 

NAME     : CALRSBERG & TUBORG INTERNATIONAL A/S

Country  : Denmark

Telephone: (45 3327) 4813/17

Fax      : (45 3327) 3327 3311

Contact  : Elisabeth K. Larsen (Mrs), Manager                   

 

NAME     : DANDY CHEWING GUM A/S

Country  : Denmark              

Telephone: (45 75) 821500

Fax      : (45 75) 835810

Contact  : Nils Joergen Sehested, Country Manager

 

 


PRINCIPAL BANKERS

 

NAME     : GOLOMT BANK OF MONGOLIA

 

Branch   : Sukhbaatar Square 3

Town     : Ulaanbaatar

 

Telephone: (976 11) 311 530 / 311 971 / 326 535

Fax      : (976 11) 311 958 / 312 307

 

Acc. No. : 499/08 124 164 00/400

 

Subject also has an account with :

 

Trade and Development Bank Mongolia Ltd

Juulnchny Gudamj 7

Ulaanbaatar 210646

Telephone: (976 11) 312 362 / 331 133

Fax      : (976 11) 325 449

 

Acc. No. : 21220029

 

 

FINANCIAL INFORMATION

 

Private companies in Mongolia are not required to publish or disclose balance sheets. Balance sheets are not available from other sources, and the subject interviewed declined to give any financial information, which the company regards as strictly confidential.

 

The following financial information applies to the Group (latest available):

 

Sales Turnover                  : US DLRS 30,000,000 - 2007 - exact 

                                       : US DLRS 50,000,000 - 2008 - exact

 

Net Profit                           : not given but stated to be profitable

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started : 12 June 1990

 

History : Subject was established in Mongolia on 12 June 1990. It was re-registered on 30 April 1996. In July 1996, Sereeter Boldkhet handed his CEO position to his wife Dendev Udval Boldkhet.

 

Tax No.: 2027356

 

Authorised Capital : US DLRS 1,701,500

 

Paid up Capital : US DLRS 1,701,500

 

Limited Liability Company with the following shareholders :

 

1. Sereeter Boldkhet                 (Majority)

 

2. Dendev Udval (Mrs)              

  (wife of the above)

 

Affiliated companies of Naran Trade Co Ltd :

 

Subsidiaries

 

1.  Naran Elo Co Ltd

    Sukhbaatar District

    Ulaanbaatar

    Telephone: (976 11) 320 218

    Fax      : (976 11) 315 738

    Website  : www.naranelectronics.mn

    (traders of audio, video appliances and electronics / authorized

    distributor for Sony, Sony Ericsson, Phillips and Samsung

    products)

             

2.  Naran Department Store Co Ltd

    Seoul street

    Sukhbaatar district

    Ulaanbaatar

    Telephone: (976 11) 328 841

    (operators of a Naran department store as well as traders of

    electrical appliances, mobile phones, watches, gift items,

    clothings, perfumery and cosmetics)

 

3.  Naran Foods Co Ltd

    Naran Building

    Seoul Street

    Sukhbaatar District

    Ulaanbaatar

    Telephone: (976 11) 322 758 / (976 99) 032 721 (Ms. Tolya

    Mongotsetseg)

    Fax      : (976 11) 320 396

    E-mail   : info.nfd@narangroup.mn

    Website  : www.naranfoods.mn

    (traders of food stuff including confectionary, fruit and

    vegetables, alcohol)

 

4.  Naran Cosmetics Co Ltd

    Naran Building

    Seoul Street

    Sukhbaatar District

    Ulaanbaatar

    Telephone: (976 11) 322 758

    Fax      : (976 11) 320 396

    (Naran Cosmetics Company imports 1,500 products from over 10

    different companies from all over the world. Naran Cosmetics is

    currently the official distributor for many of the famous brands

    including Yves Saint Laurent, Van Cleef & Arpels, Oscar De La

    Renta, Kenzo, Davidoff, L'Oreal and also mass consumer products

    from Schwarzkopf & Henkel. Operators of three retail shops)

 

5.  Yves Rocher Co Ltd

    Yves Rocher Beauty Center I

    Peace Avenue 15

    Chingeltei District

    Ulaanbaatar

    Telephone: (976 11) 327 683 / 323 065

    Fax      : (976 11) 320 396

    Website  : www.naranbeauty.mn

    (operators of a beauty centre salon, providing massage and other

    beauty care services)

 

6.  City Real Estate Co Ltd

    City Apartments Building #19

    13 th Microdistrict

    Bayanzurkh District

    Ulaanbaatar

    Telephone: (976 11) 481 123

    Fax      : (976 11) 320 396

    (responsible for every new construction & renovation works, real

    estate management for the Naran Group)

 

7.  Super Vision Co Ltd

    Building #03

    Peace Avenue

    13 th microdistrict

    Bayanzurkh District

    Ulaanbaatar

    Telephone: (976 11) 455 082

    Fax      : (976 11) 320 396

    (operators of MMDS System of Wireless cable TV as well as a

    network of cable TV Service to the residential apartment

    buildings throughout the city)

 

8.  Naran Motors Co Ltd

    Naran Plaza

    Peace Bridge #01

    Sukhbaatar District

    Ulaanbaatar

    Telephone: (976 11) 322 758

    Fax      : (976 11) 320 396

    Website  : www.naranmotors.mn

    (Naran Motors basic activities include the sales and servicing of

    BMW cars in Mongolia, official distributors of BMW in Mongolia)

 

9.  Naran Travel Co Ltd

    Naran Building

    Seoul Street

    Sukhbaatar District

    Ulaanbaatar

    Telephone: (976 11) 331 331

    Fax      : (976 11) 318 353

    (travel agency)

 

10. Naran Supermarket Co Ltd

    Naran Supermarket Building

    2nd microdistrict

    Bayangol District

    Ulaanbaatar

    Telephone: (976 11) 363 451

    Fax      : (976 11) 320 396

    (operators of a supermarket. Naran Supermarket sells more than

    8,000 items from 300 local suppliers.

 

11. SBN Television

    Seoul Street

    Sukhbaatar District

    Ulaanbaatar

    Telephone: (976 11) 331 331

    Fax      : (976 11) 318 353

    Radio and televison broadcasting company. Established in 2005.

 

12. Naran LayfStayl LLC 

    Seoul Street

    Ulaanbaatar

    Telephone: (976 11) 322 855

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Investment and holding company engaged in management and administration of its subsidiary companies, engaged in the following fields of activities :

 

- Trading in audio, video appliances and electronics, authorized

  distributor for Sony, Sony Ericsson, Phillips and Samsung

  products;

 

- Operators of a department store as well as traders of

  electronics, mobile phones, watches, gift items, clothing,

  perfumery and cosmetics;

 

- Trading in food stuff including confectionary, fruit and

  vegetables and alcoholic beverages;

 

- Trading in cosmetic products;

 

- Operators of a beauty center salon, providing massage and other

  beauty care services;

 

- Building construction & renovation works as well as real state

  management;

 

- Operators of MMDS System of Wireless cable TV as well as a

  network of cable TV Service to the residential apartment

  buildings throughout the city of Ulaanbaatar;

 

- Sale and servicing of BMW cars in Mongolia;

 

- Operators of a travel agency;

 

- Operators of a supermarket;

 

- Operators of four restaurants styled Inter Cuisine, New York New York, Thai Express and Tuul International Fusion.  

 

Imports from France, Denmark, Switzerland, Belgium, Germany, USA,

Japan, Italy, Australia, the Netherlands, Russia, China, South Korea,

Singapore and Thailand.

 

Subject does not export, all sales are domestic.

 

 

FACILITIES

 

The Company has the following facilities :

 

Owned office premises located at the heading address and six Naran Supermarkets and three Naran department stores, one Naran Shopping Mall, two cosmetic whole centres, seven Yves Rocher Centers, two Thann Shop & Thann Sanctuary SPA, one Thann Shop, six Tulip Stores located elsewhere in Ulaanbaatar.

 

Subject also operates 4 restaurants styled Inter Cuisine, New York New York, Thai Express and Tuul International Fusion.

 

Subject previously was located at Microdistrict-13, Building 2,

Bayanzurkh District, Ulaanbaatar.

 

 

SPECIAL NOTE

 

You enquired on:            Naran Group. Please note that the correct name is as per heading.  

 

Interviewed:                   Ms. Girle Sagadorj (Assistant to the Chairman).

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.95

UK Pound

1

Rs.99.36

Euro

1

Rs.82.15

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

NNA

 

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.