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Report Date : |
06.05.2014 |
IDENTIFICATION DETAILS
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Name : |
TESO CORPORATION |
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Registered Office : |
157, Peace Avenue 18th Khoroo, Songinokhairhan District Ulaanbaatar 211137 |
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Country : |
Mongolia |
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Date of Incorporation : |
10.03.2003 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Trading as importers, wholesalers, distributors and producers of dairy products, ice cream, chips, milk, beverage, sunflower, oil, soybean oil, palm oil and construction materials. |
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No. of Employees |
500 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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
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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 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
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Source
: CIA |
TESO CORPORATION
Street : 157, Peace Avenue
Area : 18th Khoroo, Songinokhairhan District
Town : Ulaanbaatar 211137
Country : Mongolia
Telephone : (976 75) 756 161 / 756 262 / Mobiles (976 88) 044 610 /
(976 88) 015 899 (Mr. Bold) / (976 88) 111 604 / (976
99) 039 695
Fax : (976 75) 756 262
E-Mail : import@teso.mn / info@teso.mn / narankhuu.teso@yahoo.com
/ hr@teso.mn / marketing@teso.mn / erbold@teso.mn /
tsenguun_bn@yahoo.com
Website : www.teso.mn
Also Known As : TESO LLC
Name Position
1. O. Narankhuu Chairman
2. O. Tsogtgerel Director
3. Enkhbat Enkhjargal Commercial Manager
4. Mr. Bold Human Resources Manager
5. Mr. Mujee Trade Manager
6. Orgil Zorigt Trade Coordinator
7. Surgalt Tzenguun Administrator
Total Employees : 500 plus
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.
NAME : TRADE AND DEVELOPMENT BANK OF MONGOLIA
Branch : Juulnchny Gudamj 7
Town : Ulaanbaatar 210646
Telephone: (976 11) 312 362 / 331 133
Fax : (976 11) 325 449
The company also has an account with :
Golomt Bank of Mongolia
Main Branch
Bodi Tower, Sukhbaatar Square
Ulaanbaatar
Telephone: (976 11) 311 530
Fax : (976 11) 312 307
Private companies in Mongolia are not required to publish or disclose balance sheets. However, the subject interviewed offered
the following information (latest available):
Sales Turnover : US DLRS 10,000,000 - 2012 – exact
Net Profit : not given
Financial year ends 31 December.
Date Started : 10 March 2003
History : The company was established in Ulaanbaatar on 10 March 2003.
Capital : not given
Limited Liability Company with the following shareholders :
1. O. Narankhuu
2. O. Tsogtgerel
3. Other undisclosed shareholders
The exact shareholding percentage was not disclosed.
Affiliated companies of the Teso Corporation :
Subsidiaries
1. Icemark LLC
Bayangool District, 2nd Khoroo
Ulaanbaatar
2. Kingsnack LLC
Ulaanbaatar
3. Milko LLC
Ulaanbaatar
4. Vit-Oil LLC
Ulaanbaatar
5. Agi LLC
Ulaanbaatar
6. Agi impex LLC
Peace avenue 157/3
Songino Khairhan District
7. Domog International LLC
Ulaanbaatar
8. TESO Construction
Ulaanbaatar
9. TESO Drilling
Ulaanbaatar
The Company is involved in the following activities :
Trading as importers, wholesalers, distributors and producers of dairy products, ice cream, chips, milk, beverage, sunflower, oil, soybean oil, palm oil and construction materials.
Building contractors
NACE Codes : 4633 / 1041 / 1089 / 1052 / 4613 / 4120
Imports from USA, China, New Zealand, Malaysia, Indonesia, Singapore, Japan, German, Australia, India and Vietnam.
Subject does not export, all sales are domestic.
The Company has the following facilities :
Owned premises comprising administrative offices located at the heading address as well as several factories with storage facilities located throughout Mongolia.
The city name given by you : Ulan Bator is misspelt. Please note that the correct spelling is as per heading.
Interviewed : Mr. Mujee (Trade Manager).
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.60.05 |
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1 |
Rs.101.32 |
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Euro |
1 |
Rs.83.34 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
NIS |
RATING EXPLANATIONS
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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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.