.

MIRA INFORM REPORT

 

 

Report Date :

28.01.2014

 

IDENTIFICATION DETAILS

 

Name :

EN EY AR LLC

 

 

Registered Office :

Monnis Tower 8th Floor, Office 803 Chingis Avenue 15, 1st Khoroo Sukhbaatar District Ulaanbaatar 14240

 

 

Country :

Mongolia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

2010

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject engages in coal mining

 

 

No. of Employees :

10 (administrative staff)

15,000 (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     

 

EN EY AR LLC (Correct)

N.A.R. LLC (Requested)

 

 

ADDRESS

 

Building : Monnis Tower 8th Floor, Office 803

 

Street   : Chingis Avenue 15, 1st Khoroo

 

Area     : Sukhbaatar District

 

Town     : Ulaanbaatar 14240

Country  : Mongolia

 

Telephone: (976 70) 100 113

Fax      : (976 70) 100 112

E-Mail   : Bolormaa.Ts@nobleenergy.com / JensKier@thisisnoble.com

 

English Translation : N A R LLC

 

Also known as : En Ey Ar XXK / NAR LLC

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                     Position

 

1. Jens Kier                               General Manager

 

2. Bolormaa Tsetsegee               Administrative Manager

 

3. Oyuntungalag Baldorj              Accountant

 

Total Employees :                      10 (administrative staff)

                                                 15,000 (group)

 

 

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,

however in view of the lack of financial information we recommend

international suppliers exercise a degree of caution.

 

Trade risk assessment: Normal

 

It is normal accepted practice for international suppliers to deal on secured terms with Mongolian importers.

 

 

PRINCIPAL BANKERS

 

Subject declined to name its bankers.

 

 

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.

 

Consolidated balance sheets as at 31 December 2012 applies to Noble Group :

 

                                                                        2012                  2011

                                                             (in thousands of US DLRS)

ASSETS

 

Non-Current Assets                         

Property, plant and equipment                  2,870,264    2,579,072

Mine properties                                      187,151        214,723

Intangible assets                                    794,700        832,997

Investments in jointly controlled entities  114,559        56,882

Investments in associates                       959,707       117,196

Long term investments                             76,503         88,866

Agricultural assets                                 450,778       359,647

Loan receivables                                     47,387         212,265

Deferred tax assets                                145,957       150,169

Total non-current assets                          5,647,006    4,611,817

 

Current Assets

Cash and cash equivalents                     751,112     1,548,600

Due from an associate                            353,510            -

Trade receivables                                    3,441,150     2,705,734

Prepayments, deposits and

other receivables                                    6,060,488     5,480,581

Inventories                                                         3,401,713     2,851,608

Tax recoverable                                       45,093        173,364

                                                            14,053,066    12,759,887

Assets of a disposal group

classified as held for sale                                     -                      2,571,119

Total current assets                               14,053,066      15,331,006

 

 

CURRENT LIABILITIES

 

Trade and other payables and

accrued liabilities                                               8,616,191     7,599,629

Bank debts and current portion

of long term debts                                              684,736       655,318

Senior notes                                                      499,276             -

Tax payable                                                       62,791       112,524

                                                                         9,862,994     8,367,471

Liabilities of a disposal group            

classified as held for sale                                                  -       463,803

Total current liabilities                                          9,862,994     8,831,274

Net Current Assets                                            4,190,072     6,499,732

Total Assets Less Current Liabilities                     9,837,078    11,111,549

 

Non-Current Liabilities

Long term bank debts                                           1,973,439     2,656,344

Convertible bonds                                                 341,944       320,409

Senior notes                                                        2,151,015     2,492,754

Deferred tax liabilities                                          188,316       351,887

Total non-current liabilities                                  4,654,714     5,821,394

NET ASSETS                                                    5,182,364     5,290,155

 

 

EQUITY

 

Equity attributable to equity holders of the parent

Issued capital                                                     209,489       206,152

Share premium                                                  1,886,589     1,791,720

Treasury shares                                                 (31,272)      (31,272)

Capital securities                                                344,891       344,891

Reserves                                                           (113,660)     (403,226)

Reserves of a disposal group

classified as held for sale                                                 -                      168,669

Retained profits                                                  2,844,036          2,510,130

                                                                        5,140,073           4,587,064

                       

Non-controlling interests                                     42,291              7,283

Non-controlling interests attributable to a disposal

Group classified as held for sale                                -                  695,808

                                                                        42,291              703,091

TOTAL EQUITY                                                 5,182,364           5,290,155

 


 

CONSOLIDATED STATEMENTS OF INCOME

 

Revenue                                                                        94,045,115         80,732,072

Cost of sales and services                                   (92,541,789)     (79,251,873)

Operating income from supply chains                  1,503,326          1,480,199

Profits / (losses) on supply chain assets              (488)                 111,098

Share of profits and losses of:

Jointly controlled entities                                    (13,957)            (12,013)

Associates                                                        (14,820)             (2,610)

Total Operating Income                                       1,474,061          1,576,674

Other income net of other expenses                    1,260                 7,624

Selling, administrative and

operating expenses                                             (698,777)           (714,446)

Profit before interest and tax                               776,544              869,852

Finance income                                                  74,199              80,007

Finance costs                                                    (415,064)           (446,498)

Profit before tax                                                  435,679            503,361

Taxation                                                            29,136               (63,645)

Profit for the year                                               464,815             439,716

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started : 2010

 

Tax No.: 5406536

 

Capital : not given

 

Limited Liability Company with the following shareholders:

 

Details of subject's shareholding structure could not be learnt at present.

 

* It is understood that subject's is a member of the Noble Group of companies.

 

Noble Group manages the global supply chain of agricultural and energy products, metals and minerals. Noble operates from over 140 locations, employing more than 70 nationalities. Noble manages a diversified portfolio of essential raw materials, integrating the sourcing, marketing, processing, financing and transportation of those materials. Noble owns and manages a portfolio of strategic assets, sourcing from low cost producers such as Brazil, Argentina, Australia and Indonesia and supplying to high growth demand markets including China, India and the Middle East. Today, Noble has interests in grain crushing facilities, coal and iron ore mines, fuel terminals and storage facilities, sugar and ethanol plants, ports, vessels and other key infrastructure facilities.

 

Affiliated companies of the subject company :

 

Associates

 

1.  Noble Group Limited

    18th Floor, Mass Mutual Tower

    38 Gloucester Road

    Hong Kong

    Tel: (852) 2861 3511

    Fax: (852) 2527 0282

 

2.  Asia Rainbow International Limited

    Hong Kong

 

3.  Chongqing Xinfu Food Co., Ltd

 

4.  Cocaf Ivoire S.A.

    Cote D’ivoire

 

5.  Evera Sociedad Anonima Comerical

    Uruguay

 

6.  Hamada Construction Engineering Limited

    Hong Kong

 

7.  Longkou Xinlong Edible Oil Co., Ltd.

 

8.  Ming Fat International Oil & Fat Chemical (Tai Xing) Company  

    Limited

 

9.  Moony Hill Limited

    Hong Kong

 

10. Nantong Noble Grain and Protein Co., Ltd

 

11. Noble Americas Corp.

    USA

 

12. Noble Americas Energy Solutions LLC

    USA

13. Noble Americas Gas & Power Corp.

    USA

 

14. Noble Americas Resources Corp.

    USA

 

15. Noble Argentina S.A.

    Argentina

 

16. Noble Brasil S.A.

    Brazil

 

17. Noble Chartering Inc.

    British Virgin Islands

 

18. Noble Clean Fuels Limited

    United Kingdom

 

19. Noble Mount Investments Limited

    Hong Kong

 

20. Noble Netherlands B.V.

    The Netherlands

 

21. Noble Paraguay Sociedad Anonima

    Paraguay

 

22. Noble Petro Inc.

    USA

 

23. Noble Resources Group Limited

    British Virgin Islands

 

24. Noble Resources International Pte. Ltd. 

    Singapore

 

25. Noble Resources Limited

    Hong Kong

 

26. Noble Resources Netherlands B.V.

    The Netherlands

 

27. Noble Resources Pte. Ltd.

    Singapore

 

28. Noble Resources SA

    Switzerland

 

29. Noble Resources South Africa (Proprietary) Limited

    Republic of South Africa

 

30. Noble Resources UK Limited

    United Kingdom

 

31. Parmenter Limited

    Hong Kong

 

32. Pioneer Goal Limited

    Hong Kong

 

33. PT Henrison Inti Persada

    Indonesia

 

34. PT Pelayaran Nasional Tanjungriau Servis

    Indonesia

 

35. Qinzhou Dayang Cereals and Oils Company Limited

 

36. Satellite LLC

    Ukraine

 

37. Summer Fortune Limited

    Hong Kong

 

38. Territory Resources Limited

    Australia

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Subject engages in coal mining.

 

NACE Code : 0510

 

Imports from Europe.

 

 

FACILITIES

 

The Company has the following facilities :

 

Administrative offices located at the heading address.

 

 

SPECIAL NOTE

 

You enquired on: N.A.R. LLC. Please note that the correct name is as per heading.  

 

Interviewed: Bolormaa Tsetsegee (Administrative Manager).

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.71

UK Pound

1

Rs.103.50

Euro

1

Rs.85.82

 

 

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

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.