MIRA INFORM REPORT

 

 

Report Date :

20.05.2014

 

IDENTIFICATION DETAILS

 

Name :

CLIMAX INTERNATIONAL LLC

 

 

Formerly Known As :

CLIMAX INTERNATIONAL XXK

 

 

Registered Office :

Akva Tern, Teevrchid Street 48, Industry Area (aka Uildveriin baruun), Bayangol District, 1st Khoroo, 16030, Central Post Office, Ulaanbaatar

 

 

Country :

Mongolia

 

 

Date of Incorporation :

09.10.2006

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Trading as importers, wholesalers, retailers and distributors of construction materials, supply and installation of heating systems and water and sewage supply systems for all types of building and constructions.

 

 

No. of Employees

25

 

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 :

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

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately  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

 

Climax International LLC

 

Company ADDRESS

 

Building             : Akva Tern

 

Street                : Teevrchid Street 48, Industry Area (aka Uildveriin

                        baruun)

 

Area                 : Bayangol District, 1st Khoroo

 

P.O. Box           : 16030, Central Post Office

Town                 : Ulaanbaatar

Country             : Mongolia

 

Telephone         : (976 70) 118 505 / Mobile (976 99) 112 556 (Batnaran

                        Ochirbat) / (976 99) 117 833 / (976 99) 908 505 / (976

                         95) 958 505 (Mr. Battsengel) / (976 99) 018 505

                        (Narangerelrn Ochirbat)

Fax                   : (976 70) 119 299

E-Mail               : climax@mongol.net

 

Also known As : Climax International XXK

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                     Position

 

1. Batnaran Ochirbat                  Managing Director

 

2. Mr. Battsengel                        Import Manager & Sales Director

 

3. Narangerelrn Ochirbat (Mrs)     Administrative Manager

 

Total Employees : 25

 

 

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     : 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

 

Acc. No. : 4524 30176 (USD)

 

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

 

 

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      : EURO   100,000 - 2006 - exact *

                        : EURO 1,000,000 - 2007 - exact

                        : EURO 1,300,000 - 2008 - exact

                        : EURO 1,800,000 - 2009 - exact 

                        : EURO 2,500,000 - 2010 – exact

                        : not given      - 2011 & 2012 

                        : EURO 2,500,000 - 2013 - exact 

                        : EURO 3,000,000 - 2014 - projected 

 

Profit Before Tax   : EURO   150,000 - 2007 - exact

                        : EURO   113,000 - 2008 - exact

                        : EURO   120,000 - 2009 - exact 

                        : EURO   160,000 – 2010 – approx.

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started :                9 October 2006

 

History :                        The company was established in Ulaanbaatar on 9 October 2006.

 

Tax No.:                        5088518

 

Certificate. No.:              9011061053

 

Authorised Capital :        TUGRIK 284,990,000

 

Paid up Capital :            TUGRIK 284,990,000

 

Limited Liability Company with the following sole shareholder :

 

Batnaran Ochirbat                          100%

(Mongolian national)

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Trading as importers, wholesalers, retailers and distributors of construction materials, supply and installation of heating systems and water and sewage supply systems for all types of building and constructions.

  

NACE Codes : 4613 / 4674

 

Imports plastic pipes of sewage /inside and outside/, fittings and

valves, radiators, heating accessories, thermostats, thermostat

valves, balancing valves, aluminium plastic pipes, mixers and

bathtubs as well as flowers.

 

Imports from Poland, Italy, Spain, Germany, Turkey and South Korea.

 

Subject does not export, all sales are domestic.

 

 

FACILITIES

 

The Company has the following facilities :

 

Rented administrative office and storage facilities located at the heading address as well as rented warehouse, 1 rented and one owned retail outlets located elsewhere in Ulaanbaatar.

 

Until 2010 subject was located at :

 

Itgelt-Orshih Center, Room 703

Chingeltei district, 2 Khoroo, Ikh toiruu 29/3

Ulaanbaatar

 

 

SPECIAL NOTE

 

Interviewed: Mr. Battsengel (Import Manager & Sales Director).

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.58.42

UK Pound

1

Rs.98.28

Euro

1

Rs.80.11

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

PDT

 

               

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.