.                                                                                               MIRA INFORM REPORT

 

 

Report Date :

24.01.2014

 

IDENTIFICATION DETAILS

 

Name :

PETROVIS TOS LLC

 

 

Registered Office :

Petrovis LLC Bldg, Baga Toiruu 51, Prime Minister Amar Street-7, 8th Khoroo, Sukhbaatar District, Ulaanbaatar 210646

 

 

Country :

Mongolia

 

 

Year of Establishments:

2004

 

 

Com. Reg. No.:

9011058044

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

importers, wholesalers and retailers of lubricants, car chemicals, motor oil and engine oil.

 

 

No. of Employees :

20 (subject)

2,000 (group)

 

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 :

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 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.

 

Source : CIA

 


Company NAME

 

Petrovis Tos LLC (Correct)

Petrovis Oil LLC (Requested)

 

 

Company ADDRESS

 

Building :           Petrovis LLC Bldg, Baga toiruu 51

Street   :           Prime Minister Amar Street-7, 8th Khoroo

Area     :           Sukhbaatar District

Town     :           Ulaanbaatar 210646

Country  :          Mongolia

 

Telephone:        (976 11) 327 051 / 330 153 / Mobile (976 99) 082 923 (Narantuya Khaserdene)

Fax      :            (976 11) 330 153 / 320 498

E-Mail   :           narantuya@petrovis.net

 

English Translation :       Petrovis Oil LLC

 

Also known as :             Petrovis Tos XXK

 

 

SENIOR COMPANY PERSONNEL

 

Name                                                   Position

 

Narantuya Khaserdene                           Managing Director

 

Total Employees :                                  20 (subject)

                                                            2,000 (group)

 

 

PAYMENTS

 

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

 

Subject is member of Petrovis Group of Companies, established in 1997. The Group operates more than 450 gasoline stations throughout Mongolia and employs 2,000 employees.

 

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

PRINCIPAL BANKERS

 

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 :

 

Khan Bank of Mongolia

Peace Avenue

P.O Box-185

Ulaanbaatar

Telephone: (976 11) 457 880

Fax      : (976 11) 457 880

 

 

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               : TUGRIK 20,000,000,000 - 2013 - approx

 

Net Profit                       : not given but stated to be profitable

           

Financial year ends 31 December.

 

The following financial information applies to Petrovis LLC :

 

Sales Turnover      : US DLRS   40,000,000 - 2004 - exact

                    : US DLRS   40,000,000 - 2005 - approx

                    : US DLRS   80,000,000 - 2006 - exact 

                    : US DLRS  110,000,000 - 2007 - exact

                    : US DLRS  130,000,000 - 2008 - exact

                    : not given            - 2009

                    : US DLRS  280,000,000 - 2010 - exact *

 

Net Profit          : not given but stated to be profitable

 

* A significant increase in sales turnover in 2010 was attributed to favourable market conditions and expansion of the business.

 

Financial year ends 31 December.

 

LEGAL STATUS AND HISTORY

 

Date Started : 2004

 

C.R. No. : 9011058044

 

Tax No.: 2816458

 

Capital : not given

 

Limited Liability Company with the following directors and shareholders:

 

1. Janchiv Oyungerel (Mrs)

 

2. Choydeon Davaanyam

   (father of Eshtineg Davaanyam (Mrs))

 

3. Other undisclosed shareholders

 

The exact shareholding percentage was not disclosed.

 

Affiliated companies of the subject company :

 

Associates

 

1. Petrovis LLC

   Petrovis LLC Bldg, Baga toiruu 51

   Prime Minister Amar Street-8

   Sukhbaatar District

   Ulaanbaatar 210646

   Telephone: (976 11) 330 606 / 330 909 / 321 277 / 327 051

   Fax      : (976 11) 320 426 / 314 012

   President : Davaanyam Davaanyam

   Employees : 15

   Est. : May 1997

   C.R. No. : 2089496

   Capital : TUGRIK 360,000,000

   Shareholders :

           - Janchiv Oyungerel (Mrs)             33.34%

           - Choydeon Davaanyam                  33.33%

             (father of Eshtineg Davaanyam (Mrs))

           - Mongol Contract Co Ltd              33.33%

             Ulaanbaatar

 

2. Central Asian Petroleum Corporation Limited

   Registered Address : Cayman Island   

 

3. Capcorp Mongolia LLC

   Mongolia

   Managing Director : T. Amarzul

 

4. Petromated Invest Limited

   Registered Addresss : Cayman Island    

 

5. Petro Matad LLC

   Suite 407, NIC Building

   Prime Minister Amar Street 8

   Sukhbaatar District 

   Ulaanbaatar 210646

   Telephone: (976 11) 331 099

   Fax      : (976 11) 321 799

   Est.: 12 January 2005

   Tax No.: 2867095

 

6. NIC JSC

   Prime Minister Amar Street-8

   Ulaanbaatar 210646

   Telephone: (976 11) 321 277 / 326 272

   Fax      : (976 11) 327 288 / 327 001

 

7. Auto Khusug Co. Ltd

   SKh District, 20th block

   Ulaanbaatar

   Telephone: (976 11) 632 106 / 633 451

   Fax      : (976 11) 632 817

   Est.: 12 May 2001

 

8. UniGas LLC

   Prime Minister Amar Street-8

   Ulaanbaatar

   Telephone: (976 11) 314 018

   Fax      : (976 11) 327 253

 

9. JJP LLC

   Prime Minister Amar St. 7

   Sukhbaatar District

   Ulaanbaatar 210646

   Mongolia

   Tel: (976 11) 311 283 / (976 70) 110 506

   Email: restaurant@blackpearl.mn

 

10.Petrovis Trading LLC

   Petrovis depot

   Tolgoit sub-district

   Songino-Hairkhan district

   Ulaanbaatar

   Mongolia

   Telephone: (976 11) 633 433

 

11.Petrovis Card LLC

   Petrovis LLC Bldg

   Prime Minister Amar St. 7

   Sukhbaatar District

   Ulaanbaatar 210646

   Mongolia

   Tel: (976 11) 310 931 / (976 70) 110 808

   Fax: (976 11) 330 808

   Email: cardcenter@petrovis.mn

 

12.Prime General Insurance LLC

   Petrovis LLC Bldg

   3d floor, Prime Minister Amar St. 7

   Sukhbaatar District

   Ulaanbaatar 210646

   Mongolia

   Tel: (976 11) 312 234

   Fax: (976 11) 319 919

   E-mail: insurance@prime.mn

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Trading as importers, wholesalers and retailers of lubricants, car chemicals, motor oil and engine oil.

 

NACE Code: 4532

 

Imports from South Korea, Kazakhstan and Russia.

 

Subject does not export, all sales are domestic.

 

 

FACILITIES

 

The Company has the following facilities :

 

Administrative offices located at the heading address.

 

 


SPECIAL NOTE

 

You enquired on: Petrovis Oil LLC. Please note that this name applies to an English translation of the subject’s name. Subject’s correct registered name is as per heading.

 

The e-mail address given by you : info@petrovis.comn is incorrect. Please note that subject's correct e-mail address is as per heading.

 

Interviewed: Narantuya Khaserdene (Managing Director).


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.99

UK Pound

1

Rs.102.67

Euro

1

Rs.83.98

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.