MIRA INFORM REPORT

 

 

Report Date :

30.04.2014            

 

IDENTIFICATION DETAILS

 

Name :

NARAN ELO CO. LTD

 

 

Registered Office :

Naran Plaza Peace Avenue Chingeltei District, beside State Department Store Ulaanbaatar 14257

 

 

Country :

Mongolia

 

 

Date of Incorporation :

July 1997

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Trading as importers, wholesalers and retailers of audio/video appliances and electronics.

 

 

No. of Employees

57

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Unknown

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Mongolia

C1

C1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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 ELO CO. LTD (CORRECT)

 

NARAN ELECTRONICS CO LTD (Requested)

 

 

ADDRESS

 

Building : Naran Plaza

 

Street   : Peace Avenue

 

Area     : Chingeltei District, beside State Department Store

 

Town     : Ulaanbaatar 14257

Country  : Mongolia

 

Telephone: (976 11) 315 738 / (976 70) 116 918 / Mobiles (976 99) 112

            425 (Arguun Boldkhet) / (976 99) 992 425 (Munkh Od)

Fax      : (976 11) 320 396

E-Mail   : munkhod.nelo@narangroup.mn / naransingapore@gmail.com

Website  : www.enaran.mn

 

Trading Style : Naran Elo

 

Also Known As : Naran Elo XXK / Naran Electronics Co Ltd

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                     Position

 

1. Sereeter Boldkhet                  Chairman

 

2. Arguun Boldkhet                    Managing Director

 

3. Munkh Od                             General Manager

 

Total Employees :                      57 (subject)

                                                1,000 (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 13 subsidiary companies

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

employs 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, however in view of the lack of financial information we recommend international suppliers exercise a degree of caution. Although it is normal accepted practice for international suppliers

to deal on secured terms with Mongolian importers.

 

 

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     : STORCK ASIA PACIFIC PTE LTD

Country  : Germany         

Telephone: (65) 738 9488

Fax      : (65) 735 0788

Contact  : Eric Schmidt, Export Director            

 

 

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

 

Subject also has an account with :

 

Trade & Development Bank of Mongolia

Khudaldaany Gudamj 7

Ulaanbaatar-11

Telephone:  (976 11) 321 171

Fax      :  (976 11) 325 449

 

 

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 information which 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 : July 1997

 

History : The company was established in Ulaanbaatar in July 1997.

 

Capital : not given

 

Limited Liability Company with the following shareholders :

 

1. Sereeter Boldhet                 (Majority)

  (Mongolian national)

 

2. Dendev Udval (Mrs)              

  (wife of the above)

 

Affiliated companies of Naran Elo Co Ltd :

 

Subject is a member of the Naran Trade Co LTD, Mongolia, headed by :

 

Naran Trade Co LTD

Naran Building

Seoul Street

5th micro district

Ulaanbaatar City

Mongolia

Phone: (976 11) 322 855

Fax  : (976 11) 320 396

E-Mail: narantrade@mongol.net

C.R. No.: 2027356

Capital : US DLRS 1,701,500

 

Which also includes the following companies :

 

Subsidiaries

 

1. 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,

   clothing’s, perfumery and cosmetics)

 

3. Naran Foods Co Ltd

   Naran Building

   Seoul Street

   Sukhbaatar District

   Ulaanbaatar

   Telephone: (976 11) 322 758

   Fax      : (976 11) 320 396

  (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 Center 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

  (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

   13th 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

  (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 Lifestyle Co. Ltd

   Naran Plaza, 5th floor

   Chinggis Avenue No. 29

   Telephone: (976 70) 116 918

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Trading as importers, wholesalers and retailers of audio/video appliances and electronics.

 

NACE Codes : 4643 / 4754

 

Authorized distributor for the following :

 

- Sony;

- Sony Ericsson;

- Phillips;

- LG;

- Samsung.

 

Subject’s main awards as follows :

 

- "VII Conference-Contributor" appreciation certificate from 

  Mongolian General Police Department;

- Discovery-2013 Contributor" appreciation certificate from Health

  Science University of Mongolia

- Contributor to Sony's Medical Equipment Market Development"

  certificate from Sony Electronics;

- Master Trainer of Sony's Medical Equipment" from Sony Electronics.

 

Imports from Singapore, Korea, Malaysia 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 as well as 3 showrooms located elsewhere in Ulaanbaatar (see ‘Branch Offices’ below).

 

Subject previously was located at Bayanzurkh Duureg, 18 Khoroo, Ulaanbaatar.

 

 

BRANCH OFFICES

 

1. World of Electronics 1 (Showroom)

   Naran Plaza, 2nd Floor

   Chinggis Avenue No. 29

   Ulaanbaatar

   Telephone: (976 11) 315 738 / (976 70) 116 918

 

2. World of Electronics 2 (Showroom)

   Naran Mall, 1st Floor

   Seoul Street No. 42/01

   Ulaanbaatar

   Telephone: (976 11) 328 841 / (976 70) 136 918

 

3. OSIM Store (Showroom)

   Naran Point Store

   Khuvisgalchdiin Street – 9

   Chingeltei District

   Ulaanbaatar

   Telephone: (976 11) 326 435

 


 

SPECIAL NOTES

 

You enquired on : Naran Elo Co. LTD. . Please note that subject is also known by this name. Subject's correct registered name is as per heading.

 

The address given by you : Bayanzurkh Duureg, 18 Khoroo, applies to the subject’s previous address. Please note that the current address is as per heading.

 

The telephone number which you provided : (976 11) 456 235 is incorrect and applies to residence. Please note that subject's correct administrative office telephone numbers are as per heading.

 

Interviewed : Munkh Od (General Manager).

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.53

UK Pound

1

Rs.101.77

Euro

1

Rs.83.92

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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.