MIRA INFORM REPORT

Report Date :

31.12.2014

IDENTIFICATION DETAILS

Name :	ULEMJ LLC
Registered Office :	Seoul Street 100, Sukhbaatar District, 3rd Khoroo, near to Naran Dept. Store 655 Ulaanbaatar 210646
Country :	Mongolia
Date of Incorporation :	20.12.1990
Com. Reg. No.:	25/5300
Legal Form :	Limited Liability Company
Line of Business :	· Manufacturers of aluminium & PVC doors and windows. · Trading as imports, wholesalers and retailers of food and household products.
No. of Employee :	350

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, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
Mongolia	B2	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

Ulemj LLC (Correct)

ULEMJ LLC INTERNAT TRADING (Requested)

ADDRESS

Street : Seoul Street 100

Area : Sukhbaatar District, 3rd Khoroo, near to Naran Dept. Store

P.O. Box No. : 655

Town : Ulaanbaatar 210646

Country : Mongolia

Telephone : (976 11) 316 800 / 320 616 (Managing Director) /

Mobiles (976 99) 114461 (Batmunkh Sengee) / (976 99)

113 610 (Mrs. Delgermaa)

Fax : (976 11) 353 514 / 316 806

E-Mail : info@ulemj.mn / admin@ulemj.mn

Website : www.ulemj.mn

Also Known As : Ulemj XXK

SENIOR COMPANY PERSONNEL

Name Position

1. Batmunkh Sengee Chief Executive Office

2. Mrs. Delgermaa Administrator

3. D. Bartanbaatar Manager

Total Employees : 350

PAYMENTS

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

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.

Opinion on maximum credit : TUGRIK 750,000,000

Trade risk assessment : Normal

PRINCIPAL BANKERS

NAME : KHAS BANK

Branch : Main Branch, Sukhbaatar district

P.O. Box : 46/721

Town : Ulaanbaatar 14200

Telephone : (976 11) 318 185

Fax : (976 11) 328 701

The company also has an account with :

Golomt Bank of Mongolia

Main Branch

Bodi Tower, Sukhbaatar Square

Ulaanbaatar

Telephone : (976 11) 311 530

Fax : (976 11) 312 307

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 10,000,000 - 2008 - exact

: US DLRS 8,000,000 - 2009 - exact *

: US DLRS 12,000,000 - 2010 - exact

: US DLRS 13,000,000 - 2011 - exact

: US DLRS 17,000,000 - 2012 - exact

: US DLRS 20,000,000 - 2013 - exact

: US DLRS 23,000,000 – 2014 – projected **

: US DLRS 26,000,000 – 2015 – projected **

Net Profit : not given but stated to be 10-15% of the sales turnover

* Decrease in sales turnover in 2009 was due to the global economic downturn and unfavourable market conditions.

** Projected increase in sales turnover in 2014 and 2015 are due to favorable market conditions and expansion of the business.

We approached the subject for their latest balance sheet. An amended

report will be sent when/if this becomes available.

Financial year ends 31 December.

LEGAL STATUS AND HISTORY

Date Started : 20 December 1990

History : Subject was established in Ulaanbaatar on 20 December 1990.

C.R. No. : 25/5300

Tax No. : 2078988 (issue date : 12 November 2010)

Authorised Capital : TUGRIK 25,000,000,000 (increased from TUGRIK 15,870,000,000 in 2012)

Paid-Up Capital : TUGRIK 25,000,000,000 (increased from TUGRIK 15,870,000,000 in 2012)

Limited Liability Company with the following sole shareholder :

Batmunkh Sengee 100%

(Mongolian national)

ACTIVITIES

The Company is involved in the following activities :

Manufacturers of aluminium & PVC doors and windows.

Trading as imports, wholesalers and retailers of food and household products.

Subject also engages in marble processing.

Operators of supermarkets, a beauty salon and a restaurant.

Subject's principal suppliers include the following :

- Concord Enterprises Inc., USA. Tel : (1 323) 588 8888;

- Thyssen Polymer, Germany. Tel : (49 9422) 821 115;

- Schueco International, Germany. Tel : (49 5202) 993 9315;

- Maco (Mayer & Co), Austria. Tel : (43 662) 6196-0;

- Looze Expeditie, Netherlands. Tel : (31 541) 533 232.

NACE Codes : 2221 / 4619

Imports from Germany, USA, Italy, the Netherlands, Austria, Finland

and China.

Subject does not export, all sales are domestic.

FACILITIES

The Company has the following facilities :

Rented premises comprising administrative offices located at the heading address as well as storage facilities located at 46 Sukhbaatar District 210656 Ulaanbaatar.

Subject also has owned premises comprising 6 supermarkets, two hairdressing salons and two restaurants located elsewhere in Ulaanbaatar (see 'Branch Offices' below).

Subject previously used the following telephone number :

Telephone: (976 11) 353 513.

REGISTERED OFFICE

Seoul Street 100

Sukhbaatar District

P.O. Box : 655

Ulaanbaatar 210646

BRANCH OFFICES

1. “Schueco” vaccuum window & doors factory

Seoul Street 100

Ulaanbaatar 210646

Telephone : (976 11) 316 800

Fax : (976 11) 316 806

(rented)

2. "California" Restaurant

Seoul Street 100

Ulaanbaatar 210646

Telephone : (976 11) 319 031

Fax : (976 11) 316 709

(owned)

Supermarkets :

3. "Good Price-1"

Makhatma Gandigiyn Street 60-р

Ulaanbaatar 210646

Telephone : (976 11) 310 057

E-mail : admin@ulemj.mn

(owned)

4. "Good Price-2"

Seoul Street 100

Ulaanbaatar 210646

Telephone : (976 11) 324 322

(owned)

5. "Good Price-3"

Barilgachdyn Street 1-16

Telephone : (976 99) 146 830

(owned)

Beauty Salon :

6. Grease Beauty Salon

Seoul Street 100

Ulaanbaatar 210646

Telephone : (976 11) 313 221

(owned)

SPECIAL NOTES

You enquired on : “ULEMJ LLC INTERNAT TRADING”. Please note that subject is also known by this name. Subject's correct registered name is as per heading.

The city name given by you : Ulaanbaator is misspelt. Please note that the correct spelling is as per heading.

Interviewed : Mrs. Delgermaa (Administrator).

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.74
UK Pound	1	Rs.98.87
Euro	1	Rs.77.32

INFORMATION DETAILS

Analysis Done by :	RSM
Report Prepared by :	DPT

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.