MIRA INFORM REPORT

 

 

Report Date :

05.05.2014              

 

IDENTIFICATION DETAILS

 

Name :

SIGMA MONGOLIA CO LTD

 

 

Registered Office :

Sigma Mongolia Building B. Dorj’s Street 42  Bayanzurkh District, 2nd Khoroo, On the left side of 805  Military Unit Ulaanbaatar 51

 

 

Country :

Mongolia

 

 

Date of Incorporation :

10.05.2004

 

 

Com. Reg. No.:

9019015080

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

·         Importers and wholesalers of elevators and escalators as well as construction materials

·         Subject also provides installation and maintenance services

 

 

No. of Employees

70

 

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 :

Unknown

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

 

SIGMA MONGOLIA CO LTD

 

 

ADDRESS

 

Building :           SIGMA MONGOLIA BUILDING

 

Street   :           B. Dorj’s Street 42

 

Area     :           Bayanzurkh District, 2nd Khoroo, On the left side of 805

                        Military Unit

 

Town     :           Ulaanbaatar 51

Country  :          Mongolia

 

Telephone:        (976 11) 450 713 / 450 315 / 453 643 / Mobile (976 91) 119

                        669 (Ho Sun Park) / (976 99) 096 167 / (976 99) 852 372 /

                         (976 96) 656 821

Fax      :            (976 11) 450 713 / 453 643

E-Mail   :           sigma@mongol.net / baisapark@hanmail.net / 

            yanja_sigma@yahoo.com / yanjindulam@sigma.mn /

            enkhee_9mn@yahoo.com

 

Also Known As : Sigma Mongolia XXK / Sigma Mongolia LLC

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                     Position

 

1. Pak Hu Son                       President

 

2. G. Yanjindulam                  General Manager

 

3. Sukhbataar En.                  Executive Director

 

4. Ms. Uurin Tzolmon               Chief Accountant

 

5. Ts. Enkhtsetseg                 Sales Manager

 

6. Ms. Oyuun Bayer                 Marketing Manager

 

7. Ms. Halunaa                     Administrative

 

Total Employees : 70

 

 

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, however in view of the lack of financial information we recommend international suppliers exercise a degree of caution.

 

 

PRINCIPAL BANKERS

 

NAME     : GOLOMT BANK OF MONGOLIA

 

Branch   : Bodi Tower, Sukhbaatar Square

Town     : Ulaanbaatar

 

Telephone: (976 11) 311 530

Fax      : (976 11) 312 307

 

 

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.

 

The following financial information is the latest available on the

Subject :

 

Sales Turnover               : US DLRS 5,000,000 - 2008 - exact

                                     : US DLRS 2,500,000 - 2009 - exact

                                     : US DLRS 2,300,000 - 2010 - exact

                                    : US DLRS 3,500,000 - 2011 - exact

 

Net Profit                       : US DLRS    63,000 - 2010 - exact

                                    : US DLRS    86,000 - 2011 – exact

 

Value of current contracts : US DLRS 3,500,000 (as of July 2012)

 

Total Value of Stock Held : US DLRS 102,300 (as of July 2012)

 

Total Capital Investment : US DLRS 412,600 (as of July 2012)

           

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started : 10 May 2004

 

History : The company was established in Ulaanbaatar on 10 May 2004.

 

C. R. No.: 9019015080

 

Tax No.: 2829517

 

Authorised Capital : US DLRS 120,000

Paid-Up Capital : US DLRS 120,000

 

Limited Liability Company with the following shareholders :

 

Shareholders                                   Percentage

 

1. Pak Hu Son                                      90.23%

   (South Korean national)

 

2. Sukhbataar En.                                   9.77%

  (Mongolian national)

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Importers and wholesalers of elevators and escalators as well as

construction materials.

 

Subject also provides installation and maintenance services.

 

NACE Codes : 4613 / 4329

 

Distributors for Sigma Elevator Company (South Korea), LG International Corp (South Korea) and OTIS (South Korea).

 

Imports from South Korea and China.

 

Subject does not export, all sales are domestic.


 

FACILITIES

 

The Company has the following facilities :

 

2,000 sq. m. owned premises comprising administrative offices, a retail outlet, a service centre and storage facilities located at the heading address.

 

Until 2009 subject was located at :

 

Namyangju Cultural Centre

Ikh Toiruu 43, 14th Khoroo

Bayanzurkh District

Ulaanbaatar 210348

 

 

REGISTERED OFFICE

 

On the left side of 805 Military Unit

B. Dorj Street 42

Bayanzurkh District, 2nd Khoroo

Ulaanbaatar

 

 

SPECIAL NOTES

 

The address which you provided : NAMYANGJU CULTURAL CENTER, Sigma Office F1, BAYANZURKH DIST, ULAANBAATAR 210348 applies to subject's former address. Please note that subject's current administrative office address is as per heading.

 

Interviewed : Ms. Oyuun Bayer (Marketing Manager).


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.23

UK Pound

1

Rs.101.68

Euro

1

Rs.83.46

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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.