MIRA INFORM REPORT

Report Date :

30.08.2014

IDENTIFICATION DETAILS

Name :	GREEN CITY LLC
Registered Office :	Green City LLC Building Police Academy Avenue No. 50 Bayanzurkh District, 8th Khoroo Ulaanbaatar 13301
Country :	Mongolia
Date of Incorporation :	14.08.1999
Legal Form :	Limited Liability Company
Line of Business :	Trading as importers, wholesalers and distributors of foodstuff.
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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
Mongolia	C1	B2

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

CO. NAME : GREEN CITY LLC (Correct)

GREENCITY LLC (Requested)

ADDRESS

Building : Green City LLC Building

Street : Police Academy Avenue No. 50

Area : Bayanzurkh District, 8th Khoroo

Town : Ulaanbaatar 13301

Country : Mongolia

Telephone: (976 11) 457 891

Fax : (976 11) 457 893

E-Mail : nobuo.iwasa@gmail.com / bayarmaa@greencity.mn /

navchaa@greencity.mn / enkhtsetseg@greencity.mn

Website : www.greencity.mn

Also Known As : Green City XXK

SENIOR COMPANY PERSONNEL

Name Position

1. Choi Byoung Hoon Chairman

2. Nobuo Iwasa Sales Manager

(aka Daniel)

3. Altan Tuya Administrator

4. Enkhtsetseg Administrator

Total Employees : 170

PAYMENTS

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

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.

PRINCIPAL BANKERS

NAME : TRADE AND DEVELOPMENT BANK OF MONGOLIA

Branch : Khudaldaany Gudamj 7

Town : Ulaanbaatar

Telephone: (976 11) 321 171

Fax : (976 11) 325 449

The company also has an account with the following bank :

Khan Bank

Seoul Street 25

Sukhbaatar District

Ulaanbaatar

Telephone: (976 11) 332 333

Fax : (976 70) 117 023

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 21,000,000 - 2013 – exact

: US DLRS 21,000,000 – 2014 – projected

Net Profit : not given but stated to be profitable

Financial year ends 31 December.

LEGAL STATUS AND HISTORY

Date Started : 14 August 1999

History : The subject company was established in Ulaanbaatar on 14 August 1999.

Tax No.: 2593459 (issue date : 01/09/2001)

Capital : not given

Limited Liability Company with the following director and shareholders :

Director

Choi Byoung Hoon

Shareholders

1. Choi Byoung Hoon

(South Korean national)

2. Undisclosed members

The exact shareholding percentage was not disclosed.

ACTIVITIES

The Company is involved in the following activities :

Trading as importers, wholesalers and distributors of foodstuff.

Subject’s main brands are as follows :

- Orion;

- Nongshim;

- Nokchawon;

- Lotte;

- Kato Rice;

- Green Seed;

- CJ.

NACE Codes : 4617 / 4619 / 4634 / 4638

Imports from South Korea, Russia, Japan, Vietnam, China and Cambodia.

Subject does not export, all sales are domestic.

FACILITIES

The Company has the following facilities :

Owned administrative offices with storage facilities located at the heading address as well as two branches located elsewhere in Beijing and Erlian City.

Until 2012, subject was located at :

Railway Autobase Building 1, 1st Floor

Teeverchdiin Street

Bayangol District, 4th Horoo

Subject previously used the following telephone and fax numbers :

Telephone: (976 21) 242 799
Fax      : (976 21) 242 798

SPECIAL NOTES

The registration number given by you : 2197190 is incorrect. Please note that subject’s correct registration number (aka Tax Number) is 2593459.

You enquired on : GREENCITY LLC. Please note that subject's correct registered name is as per heading.

The address given by you : 1FL RAILWAY AUTOBASE BLDG 1 TEEVERCHDIIN ST 4TH HOROO, BAYANGOL DIST applies to the subject’s previous address. Please note that the current address is as per heading.

The telephone and fax numbers given by you respectively : (976 21) 242 799 & (976 21) 242 798 are no longer in use. Please note that subject’s current telephone and fax numbers are as per heading.

The total number of employees of the subject is 170 as confirmed by Nobuo Iwasa (Sales Manager).

Interviewed : Nobuo Iwasa (Sales Manager).

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.48
UK Pound	1	Rs.100.35
Euro	1	Rs.79.86

INFORMATION DETAILS

Analysis Done by :	DIV
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.