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Report Date : |
23.07.2014 |
IDENTIFICATION DETAILS
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Correct Name : |
ERDENET TEX
CORPORATION |
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Registered Office : |
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Country : |
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Year of Incorporation : |
1981 |
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Legal Form : |
Joint
Stock Company |
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Line of Business : |
Manufacturers of Carpets,
Shawls, Scarves, Stoles, Plaids and Blankets. Subject product lines are as follows: ·
Rug; Runner; Wall to Wall Carpet; Erdenet Cashmere. |
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No of Employees : |
1,400 (Subject) 2,800 (Group) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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Mongolia |
C1 |
C1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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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 sales. 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
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Source
: CIA |
Erdenet
Tex Corporation (Correct)
ERDENT
TEX CORPORATION (Requested)
Building : Erdenet
Tex Corporation Building
Area : Bayan
Andor Soum
P.O. Box No.: 61000 / 1367
Town : Erdenet
Province : Orkhon
Aimags
Country : Mongolia
Telephone : (976
70) 350 111 / 359 517 / 351 517 / Mobiles (976 99)
035
912 (Mrs. Mandaalmaa) / (976 99) 092 712 (B.
Narantsetseg)
/ (976 99) 006 442 (Batnyam Batsaikhan)
/ (976 94) 077 889 / (976 99) 097
889 / (976 94) 087
889
Fax : (976
70) 359 617
E-mail : info@erdcarpet.com / info@erdenettex.mn /
Website : www.erdenettex.mn
Trading Style : Erdenet Cashmere / Erdenet Carpet
Also Known As : Erdenet Carpet JSC / Erdenet Carpet
Corporation /
ЭРДЭНЭТ
ХИВС
Корпораци /
Эрдэнэт хивс
ХК
Name Position
1. Enkhbayar
Shardarsuren Managing Director
2. B. Khaliunaa Supply Chain Manager
3. Batnyam Batsaikhan Import Manager
4. B. Narantsetseg Chief Accountant
5. Mrs. Mandaalmaa Assistant to Managing
Director
Total Employees : 1,400 (subject)
2,800 (group)
No complaints have been
heard regarding payments from local suppliers
or banks.
Subject is a member of the
Nomin Group Companies - one of the
largest private sector
entities in terms of number of employees in
Mongolia with about 2,800
employees. The Group has more than 15
subsidiaries covering
diversified business activities including:
general manufacturing &
services, information & communications,
property development, and
food and beverages. The Group had annual
sales turnover US DLRS 250
million in 2009.
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
NAME : TRADE AND DEVELOPMENT BANK OF MONGOLIA
Branch : Khudaldaany Gudamj 7
Town : Ulanbaatar-11
Telephone: (976 11) 321 171
Fax : (976 11) 325 449
The company also
has an account with the following banks :
1. Golomt Bank of Mongolia
Main Branch
Bodi Tower,
Sukhbaatar Square
Ulaanbaatar
Telephone: (976 11)
311 530
Fax : (976 11) 312 307
2. Khan Bank of Mongolia
Peace Avenue
P.O Box-185
Ulaanbaatar
Telephone: (976 11) 457 880
Fax
: (976 11) 457 880
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 11,000,000 - 2008 - exact
: US DLRS
10,000,000 - 2009 - exact
: US DLRS 12,000,000 - 2010 - exact
: US DLRS
13,500,000 - 2011 – exact
: US DLRS
14,500,000 - 2012 - exact
: US DLRS
15,000,000 - 2013 - exact
: US DLRS 6,500,000 - 2014 – exact *
: US DLRS
15,000,000 - 2014 - projected
Net Profit : not given but stated to be
profitable
* 6 months results (January - June).
Financial Year Ends 31
December.
The following information applies to the Nomin
Group (latest available) :
Sales Turnover : US DLRS
48,000,000 - 2004 - exact
: US DLRS 60,000,000 - 2005 - exact
: US DLRS 65,000,000 - 2006 - exact
: US DLRS 80,000,000 - 2007 - exact
: US DLRS
150,000,000 - 2008 - exact
: US DLRS
250,000,000 - 2009 - exact
Net Profit : not given but stated to be 10% of
the sales
Financial year ends 31
December.
Date Started : 1981
History :
The subject was incorporated in Mongolia on 1981 as a state owned company and
in 1992 subject privatised and converted to a Joint Stock Company.
Tax No.: 2030314
Authorised Capital : TUGRIK
21,000,000,000
Paid Up Capital : TUGRIK
21,000,000,000
Joint Stock Company with the following sole
shareholder :
Nomin Holding Company
Ltd
State Department Store, 7
Floor
Peace Avenue 44
Ulaanbaatar 210644
Telephone: (976 11) 313 232
Fax :
(976 11) 314 242
Shareholders :
- Sh. Bayarsaikhan 51%
- Enkhbayar
Shardarsuren 49%
(brother of the above)
Affiliated companies of Nomin Holding Company Ltd :
Subsidiaries/Associates
1. Nomin Fund (100%)
Peace Avenue 44
P.O. Box 688
Ulaanbaatar
Telephone: (976 11) 313 232
Fax
: (976 11) 314 242
(finance company)
2. Nomin Trading Co
Ltd (100%)
Peace Avenue 44
P.O. Box 688
Ulaanbaatar
Telephone: (976 11) 313 232
Fax
: (976 11) 314 242
Established on 1 February 2009.
The company was created for the purpose of
tax
efficiency for the group.
3. Nomin Tours (100%)
Peace Avenue 44
P.O. Box 688
Ulaanbaatar
Telephone: (976 11) 313 232
Fax
: (976 11) 314 242
(inbound & outbound tour operator)
4. Nomin Electronics (100%)
Peace Avenue 44
P.O. Box 688
Ulaanbaatar
Telephone: (976 11) 313 232
Fax
: (976 11) 314 242
(of audio and video goods, household
appliance, sport and
hospital tools, and musical instruments)
5. Nomin Fashion (100%)
Peace Avenue 44
P.O. Box 688
Ulaanbaatar
Telephone: (976 11) 313 232
Fax
: (976 11) 314 242
(retailers of all kinds of national and
international brands
clothes, shoes, and jewellery)
6. Nomin Motors (100%)
Peace Avenue 44
P.O. Box 688
Ulaanbaatar
Telephone: (976 11) 313 232
Fax
: (976 11) 314 242
(car dealers)
7. Nomin Cards (100%)
Peace Avenue 44
P.O. Box 688
Ulaanbaatar
Telephone: (976 11) 313 232
Fax
: (976 11) 314 242
8. Nomin Insurance (100%)
Peace Avenue 44
P.O. Box 688
Ulaanbaatar
Telephone: (976 11) 313 232
Fax
: (976 11) 314 242
(finance company)
9. Nomin Construction (100%)
Peace Avenue 44
P.O. Box 688
Ulaanbaatar
Telephone: (976 11) 313 232
Fax
: (976 11) 314 242
(construction company)
10.Nomin Union SCC (100%)
Peace Avenue 44
P.O. Box 688
Ulaanbaatar
Telephone: (976 11) 313 232
Fax
: (976 11) 314 242
(banking and finance company)
11.Nomin Real Estate (100%)
Peace Avenue 44
P.O. Box 688
Ulaanbaatar
Telephone: (976 11) 313 232
Fax : (976 11) 314 242
12.Monel Electronic
Factory (80%)
(manufacturers, exporters and
wholesalers of audio visual, household
appliances, office equipment)
13.Nomin Foods Co Ltd (100%)
Orbit Street
Songinokairkhan District, 20th Khoroo
Ulaanbaatar-37
Telephone:
(976 11) 631 222 / 632 222 / 313 232
Fax
: (976 11) 631 645 / 636 347 /
314 242
E-Mail
: boldbaatar@nomin.net
14.Ulsyn Ikh Delguur
HK (75%)
(former state department store)
address as per heading
15.Nomin Singapore (73%)
Singapore
16.Khupsugul Water
Road (68%)
The Company is involved in the following activities
:
Manufacturers of carpets,
shawls, scarves, stoles, plaids and blankets.
Subjects main products are as follows :
- Rug;
- Runner;
- Wall to Wall Carpet;
- Erdenet Cashmere.
NACE Code : 1393
Imports from South Korea,
China, Russia, India, Turkey and European Countries.
Exports to 15 countries
including Russia, Kazakhstan, China, Germany, Austria, Qatar, Jordan, USA and
Japan.
The Company has the following facilities :
46,000 sq. m. owned premises
comprising administrative offices, factory and storage facilities located at
the heading address as well as well as a branch located in Ulaanbaatar (see
’Branch Office’ below ).
Subject previously used the
following telephone and fax numbers :
Telephone : (976 1352) 21 517
Fax :
(976 1352) 21 617
State Department Store, 6th
Floor
Peace Avenue 44
P.O. Box 688
Ulaanbaatar 210644
Telephone: (976 11) 313 232
Fax :
(976 11) 314 242
You enquired on : ERDENT
TEX CORPORATION. Please note that the correct name is as per heading.
Interviewed : B.
Narantsetseg (Chief Accountant).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.23 |
|
UK Pound |
1 |
Rs.102.86 |
|
Euro |
1 |
Rs.81.44 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
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Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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>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 |
|
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 |
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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 |
|
<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.