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Report Date : |
21.02.2014 |
IDENTIFICATION DETAILS
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Name : |
NBIK LLC |
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Registered Office : |
Lux Center, Office 703 G. Chagdarjaviin Street Sukhbaatar district Ulaanbaatar |
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Country : |
Mongolia |
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Date of Incorporation : |
2010 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
· Building contractors engaged in construction of infrastructure for mining production sites and hotels. ·
Trading as importers and wholesalers of
construction materials. |
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No. of Employees : |
300-400 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
No complaints |
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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 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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
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Source
: CIA |
CO. NAME : NBIK LLC (Correct)
NBIK (Requested)
Building : Lux Center, Office 703
Street : G. Chagdarjaviin Street
Area : Sukhbaatar district
Town : Ulaanbaatar
Country : Mongolia
Mobile : (976 99) 902 234 (Kh. Boldsukh) / (976 98) 019 797 / (976 98) 029 797 / (976 99) 106 398 / (976 88) 106 398
E-Mail : boldsukh@nbik.mn / procurement@nbik.mn
Also known as : NBIK XXK / En Bi Ay Key XXK
Name Position
1. B. Gankhuyag Managing Director
2. Kh. Boldsukh Deputy Managing Director
Total Employees : 300-400
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.
Trade risk assessment: Normal
G.NATSAGDORJ: OUR GOAL IS TO MEET OYU TOLGOI'S SAFETY STANDARDS
In 2013, (www.ot.mn): For Oyu Tolgoi, safety is the core value. Therefore, the company also requires the same safety standards from their contractors and suppliers. Suppliers are expected to introduce them in their own daily operations creating a new work culture in Mongolia.
One of these companies is NBIC LLC. HR director of the company G.Natsagdorj says: "Working with Oyu Tolgoi brings many results. One of them is safety. We strive to meet their international safety standards. We are constantly learning many things in this area. We organised a monthly campaign to introduce new safety knowledge at work.” The staff of NBIC announced that 2014 would be a “year of safety policy.” They believe that quality of mining construction and safety policy are linked. In other words, their policy is that quality buildings must be built safely.
Today they work with 300 employees focusing on mining construction and have already participated in big construction projects. They became Oyu Tolgoi suppliers in 2013 and in addition to supplying goods, they also engage in construction work. They worked on building the heavy machinery repair shop and safety training centre. Deputy Director of NBIC LLC Kh.Boldsukh describes their future goals: "We strive to move Mongolian construction standards one step forward towards reaching world standard and to participate in huge projects like Oyu Tolgoi, making our own contribution to the country's development."
Oyu Tolgoi LLC has a tradition of promoting the exceptional service of suppliers by issuing Supplier of the Month awards. NBIC LLC was selected as the best supplier for October.
NAME : GOLOMT BANK OF MONGOLIA
Branch : Bodi Tower, Sukhbaatar Square
Town : Ulaanbaatar
Telephone: (976 11) 311 530
Fax : (976 11) 312 307
The company 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
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 7,000,000 - 2013 - approx
: US DLRS 8,000,000 - 2014 – projected
Net Profit : not given but stated to be profitable
Financial year ends 31
December.
Date Started : 2010
C.R. No. : 9011245079
Tax No.: 5403502
Capital : not given
Limited Liability Company with the following shareholders:
1. B. Gankhuyag
2. Other undisclosed four physical individuals
The exact shareholding percentage was not disclosed.
The Company is involved in the following activities :
Building contractors engaged in construction of infrastructure for mining production sites and hotels.
Trading as importers and wholesalers of construction materials.
NACE Code : 4120 / 4299 / 4673
Imports from China and South Korea.
Subject does not export, all sales are domestic.
The Company has the following facilities :
Administrative offices located at the heading address.
You enquired on: NBIK. Please note that the correct name is as per heading.
Interviewed: Kh. Boldsukh (Deputy Managing Director).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.62.28 |
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|
1 |
Rs.103.84 |
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Euro |
1 |
Rs.85.70 |
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 |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome
financial difficulties seems comparatively below average. |
Small |
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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 |
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<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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.