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Report Date : |
13.05.2014 |
IDENTIFICATION DETAILS
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Name : |
NOMIN TRADING CO LTD |
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Formerly Known As : |
Nomin Trading LLC / Nomin Trading XXK |
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Registered Office : |
State Department Store (SDS Building), Peace Avenue 44 (Enkhtaivan Avenue), Chingeltei District, 3rd Khoroo, P.O. Box : 688, Ulaanbaatar 210644 |
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Country : |
Mongolia |
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Date of Incorporation : |
2008 |
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Com. Reg. No.: |
9011144130 |
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Legal Form : |
Limited Liability
Company |
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Line of Business : |
Trading as importers and
distributors of general merchandise such as audio visual equipment, household
appliances, food products, garments, automobiles and related spare parts and
furniture. |
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No. of Employees |
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
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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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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately 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 |
Nomin Trading Co Ltd
ADDRESS
Building : State Department Store (SDS Building)
Street : Peace Avenue 44 (Enkhtaivan Avenue)
Area : Chingeltei District, 3rd Khoroo
P.O. Box : 688
Town : Ulaanbaatar 210644
Country : Mongolia
Telephone: (976 11) 313 232 / Mobiles (976 99) 115 515 (Enkhbayar
Shardarsuren) / (976 99) 112 205 (Shagdarsuren
Bayarsaikhan) / (976 99) 110 668 (Ganchimeg Sanja)
Fax : (976 11) 314 242
E-Mail : boldbaatar@nomin.net / enkhbayar@nomin.net /
ganchimeg.s@nomin.net
Website : www.nomin.net
Also Known As : Nomin Trading LLC / Nomin Trading XXK
Name Position
1. Shagdarsuren Bayarsaikhan President
2. Enkhbayar Shardarsuren Chief
Executive Officer
3. Oyuntsetzeg Group Logistics Manager
4. Ganchimeg Sanja (Mrs) Executive
Director (Insurance Division)
Total Employees : 100 plus
(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 150 million in 2008.
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. 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 : Ulaanbaatar-11
Telephone: (976
11) 321 171
Fax : (976 11) 325 449
Acc. No. : 21220558
(US $)
The company also has an account with :
Golomt Bank of Mongolia
Sukhbatar Squire 3
Ulaanbaatar
Telephone: (976 11) 329 057
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 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.
The following information applies to Erdenet Carpet
Corporation (latest available) :
Sales Turnover : US DLRS 11,000,000 - 2008 - exact
: US DLRS 10,000,000 - 2009 - exact
: US DLRS 12,000,000 - 2010 –
approx.
Net Profit : not given but stated to be
profitable
Financial Year ends 31 December.
Date Started : 2008
History : The
company was established in Ulaanbaatar in 2008.
C.R. No.: 9011144130
Capital : not
given
Limited Liability Company with the following sole
shareholder :
Nomin Holding Company Ltd 100%
State Department Store, 7 Floor
Peace Avenue 44
Ulaanbaatar 210644
Telephone: (976 11) 313 232
Fax : (976 11)
314 242
Shareholders :
- Shagdarsuren Bayarsaikhan 51%
(Mongolian national)
- Enkhbayar Shardarsuren 49%
(Mongolian national)
Affiliated companies of Nomin Trading Co. Ltd :
Subsidiaries/Associates
1. Nomin Foods Co Ltd (100%)
Peace Avenue 44
P.O. Box 688
Ulaanbaatar
Telephone: (976 11)
313 232
Fax : (976 11) 314 242
2. 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)
3. 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)
4. 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)
5. Nomin Motors (100%)
Peace Avenue 44
P.O. Box 688
Ulaanbaatar
Telephone: (976 11)
313 232
Fax :
(976 11) 314 242
(car dealers)
6. Nomin Home Style (100%)
Peace Avenue 44
P.O. Box 688
Ulaanbaatar
Telephone: (976 11)
313 232
Fax : (976 11) 314 242
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.Nomin Fund (100%)
Peace Avenue 44
P.O. Box 688
Ulaanbaatar
Telephone: (976 11)
313 232
Fax :
(976 11) 314 242
(finance company)
13.Monel Electronic Factory (80%)
(manufacturers,
exporters and
wholesalers of
audio visual, household
appliances, office
equipment)
14.Erdenet Carpet JSC (80%)
Erdenet City
(manufactur of
carpets; 1,050 employees)
15.Ulsyn Ikh Delguur HK (75%)
(former state
department store)
address as per
heading
16.15 Nomin Singapore (73%)
Singapore
17.Khupsugul Water Road (68%)
The Company is involved in the following activities :
Trading as importers and distributors of general merchandise
such as
audio visual equipment, household appliances, food products,
garments, automobiles and related spare parts and furniture.
NACE Codes : 4615 / 4616 / 4617
Subject mainly imports on behalf of its five affiliated
companies,
namely Nomin Fashion, Nomin Electronics, Nomin Foods Co Ltd,
Nomin
Motors and Nomin Home Style.
Imports from Singapore, South Korea, Russia, Malaysia,
France,
Hungary, Germany, Turkey and The Netherlands.
Subject does not export, all sales are domestic.
The Company has the following facilities :
Rented administrative offices and storage facilities located
at the heading address.
This amended report is sent as a replacement of our previous
report Ref: 739631.01.C.SZN / dated 28/04/2014.
Interviewed : Ganchimeg Sanja (Mrs) (Executive Director
(Insurance
Division)).
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.59.72 |
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1 |
Rs.100.81 |
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Euro |
1 |
Rs.82.22 |
INFORMATION DETAILS
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Analysis Done by
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SUB |
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Report Prepared
by : |
PDT |
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.