MIRA INFORM REPORT

Report Date :

07.07.2014

IDENTIFICATION DETAILS

Name :	HYUNDAI ELEVATOR MONGOLIA LLC
Registered Office :	Mongol Daatgal Building, Office 206 5Khoroo, Sukhbaatar District Ulaanbaatar
Country :	Mongolia
Date of Incorporation :	06.02.2009
Com. Reg. No.:	9011184037
Legal Form :	Limited Liability Company
Line of Business :	Trading as importers, wholesalers and retailers of heavy equipment, elevators, escalators and moving walkway.
No. of Employees	50

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 – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
Mongolia	C1	C1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	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

CO. NAME : HYUNDAI ELEVATOR MONGOLIA LLC (Correct)

HYUNDAI ELEVATOR MONGOLIA INCH LLC (Requested)

ADDRESS

Building : Mongol Daatgal Building, Office 206

Street : 5 Khoroo, Sukhbaatar District

Town : Ulaanbaatar

Country : Mongolia

Telephone : (976 70) 153 333 / Mobiles (976 99) 112 796

(Khishigbatar Chimeddorzh) / (976 94) 112 796 (Oyun

Tudev)

Fax : (976 70) 163 333

E-Mail : hyundai_elevator@yahoo.com / ch-highig@yahoo.com /

batkhishig@hyundai-elevator.mn

Website : www.hyundai-elevator.mn

Also Known As : Hyundai Elevator Mongolia XXK / ХЬЮНДАЙ ЭЛЕВАТОР

МОНГОЛИА ИНЧ ХХК

SENIOR COMPANY PERSONNEL

Name Position

1. Khishigbatar Chimeddorzh Managing Director

2. Oyun Tudev Chief Accountant

3. Mrs Batkhishig Foreign Relations Manager

Total Employees : 50

PAYMENTS

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

We consider it is acceptable to deal with subject for SMALL 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 :

Trade & Development Bank of Mongolia

Khudaldaany Gudamj 7, Baga Toiruu 12

Ulaanbaatar

Telephone: (976 11) 312 363

Fax : (976 11) 325 449

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 89,900,000 - 2010 - exact

: TUGRIK 1,600,000,000 - 2011 - exact *

: TUGRIK 1,700,000,000 - 2012 – approx.

: TUGRIK 1,700,000,000 - 2013 – approx.

Net Profit : TUGRIK 2,000,000 - 2010 - exact

: TUGRIK 100,000,000 - 2011 - exact *

* A significant increase in sales turnover in 2011 was attributed to favourable market conditions and expansion of the business.

Financial year ends 31 December.

LEGAL STATUS AND HISTORY

Date Started : 6 February 2009

History : Subject was established in Mongolia on 6 February 2009.

C.R. No. : 9011184037

Tax No.: 5285631

Authorised Capital : TUGRIK 1,000,000

Paid-Up Capital : TUGRIK 1,000,000

Limited Liability Company with the following sole shareholder :

Khishigbatar Chimeddorzh 100%

(Mongolian national)

ACTIVITIES

The Company is involved in the following activities :

Trading as importers, wholesalers and retailers of heavy equipment, elevators, escalators and moving walkway.

NACE Codes : 4669

Imports from South Korea and China.

Subject does not export, all sales are domestic.

FACILITIES

The Company has the following facilities :

55 sq. m. rented premises comprising administrative offices located at the heading address.

Until 2010, subject was located at :

UB Mart Center, 5th Floor, Room 513, 1st Khoroo,

Sukhbaatar District Chinggis Avenue,

Ulaanbaatar

Subject previously used the following telephone and fax numbers :

Telephone: (976 11) 324 414

Fax : (976 11) 324 414

REGISTERED OFFICE

38 Building, Office 66

Bayanzurkh District, 18 Khoroo

Ulaanbaatar

SPECIAL NOTES

This amended report is sent as a replacement of our previous report Ref: 741364.01.C.SZN.X / dated 25/06/2014.

As per your special questions, we confirm the following :

The given name by you : ХЬЮНДАЙ ЭЛЕВАТОР МОНГОЛИА ИНЧ ХХК applies to subject’s name in local language (Mongolian).

The commercial registration number and the date of incorporation given by you : 2011357 / May 6th 2006 is incorrect. Please note that as per subject's Khishigbatar Chimeddorzh (Managing Director) subject was established 6 February 2009 under tax registration number 5285631.

You enquired on : HYUNDAI ELEVATOR MONGOLIA INCH LLC. Please note that the correct name is as per heading.

The telephone number which you provided : (976 11) 7015 3333 is incorrect. Please note that subject's correct administrative office telephone numbers are as per heading.

The address given by you : MD-1 BLDG 5^TH Khoroo, Sukhbaatar Dist is misspelt. Please note that the correct spelling is as per heading.

Interviewed : Khishigbatar Chimeddorzh (Managing Director).

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.59.79
UK Pound	1	Rs.102.66
Euro	1	Rs.81.32

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.